Exam 9: Developing New Products and Managing the Product Life Cycle

Explain why so many new products fail and how a company can improve its odds of new- product success.

Briefly describe the steps in the new- product development process.

The major purpose of test marketing is to provide management with the information needed to make a final decision about .

is a new- product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

Which of the following is the practice of inviting broad communities of customers,employees,independent researchers,and members of the public into the new- product innovation process?

Provide the major sources of external new- product ideas and explain why these sources offer advantages over internal sources.

Once the product or service passes the business analysis test,it moves into what stage?

Why has the cost of product liability insurance risen so dramatically?

Refer to the scenario below to answer the following questions. Most people laughed when Evelyn Ringler explained her product idea: a solar- powered vacuum cleaner.But the concept was practical and the technology used in the vacuum was the same as that used in many children's toys.After setting up a demonstration booth in a mall in a Chicago suburb,Evelyn felt more assured than ever that her idea would be a hit. Consumers seemed receptive and offered helpful pieces of advice,such as how much they would pay for the vacuum,what colors they would prefer,and why they would not buy the vacuum. The vacuum itself was dome- shaped,something like a small saucer,with a filter bag on top and sensory nodes along the edges.After being charged in the sunlight,the vacuum could run for 10 hours,covering a floor area of 600 square feet.As the apparatus lightly bumped into table legs,chairs,and so on,the sensory nodes allowed the vacuum to move around the objects in various directions.This is the same type of technology used in the manufacture of children's race cars and walking dolls. Evelyn knew that the solar- powered vacuum would be especially helpful to both elderly consumers,who may have a more difficult time with vacuuming,and on- the- go consumers who lead busy lives.The price would be above average but would likely be reduced after Evelyn recouped some of her costs. After a 500- unit production run and a substantial financial investment,Evelyn set up a multiple- city test market,in a Chicago mall and in an appliance store in New Jersey."It's such a novel idea," Evelyn added."People will notice it,even if they don't buy it right away." -Evelyn's vacuum is at the stage of the product life cycle.

Which of the following statements best explains why idea screening may be the most important step of new- product development?

A detailed version of a new idea stated in meaningful customer terms is called a .

JumBo Games is launching a new set of game toys in the commercialization stage.The first decision to make is introduction timing and the second is where to launch the new product.

Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

What may be learned in a test market?

Which of the following is NOT a recommended method for companies to tap into their customers as sources for new- product ideas?

The first part of the marketing strategy statement describes the target market;the planned product positioning;and goals for sales,profits,and .

Product improvements,product modifications,and original products can all be classified as .

Why might a company choose to develop a planned market rollout?

Explain how the PLC applies differently to a product class than to a product form.

Sales for the time- tried household cleansers made by Brite and New,Inc.have been declining for some time.If these products are typical,sales are declining because of technological advances,shifts in consumer tastes,and lack of raw materials from foreign suppliers.