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

In which stage of the PLC will promotional expenditures be especially high in an attempt to create consumer awareness?

Which stage in the PLC normally lasts longest and poses strong challenges to the marketing managers?

The PLC can be applied to more than just brands.Your assignment is to prepare a presentation about the application of the PLC to as many of your company's operations as possible.What would you include? What wouldn't you include?

Following the decision to "time" the introduction of the new product,a company must decide to launch the new product.

In a _,new products and marketing tactics are tested online in a virtual shopping environment.

To avoid too few new- product ideas and the failure of many good ideas,management should install an innovation management system that collects,reviews,evaluates,and manages new- product ideas.

Although products that remain in the maturity stage of the PLC seem unchanged,the most successful ones actually evolve to meet changing consumer needs.

Your company decides to use only internal sources for developing new- product ideas.Which of the following would NOT be consulted?

A company getting ready to launch a new product must make several decisions.The company must first decide on _ .

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 is the practical use of solar power in a vacuum cleaner that is designed to effortlessly sweep the floors of on- the- go and elderly consumers.

Profits rise during the growth stage of the PLC because promotion costs are spread over a large volume and unit manufacturing costs fall.

The international growth of many professional and business services such as accounting,consulting,and advertising led to the globalization of the client companies they serve.

New World Releases is conducting a business analysis to determine which of the many new songs available to management should be released.Sales must be estimated before costs can be estimated.Which of the following did your text recommend for forecasting sales?

Concept testing works best with people who are familiar with the new idea and the new product's purpose.This generally includes top management,the sales force,and research and development.

At Fantastic Flavors,a large regional chain of candy stores,employees from marketing,design,production,and finance work in a cross- functional group to save time and money in the new- product development process.Fantastic Flavors uses a(n)approach.

Up to 80 percent of all new consumer products fail or seriously underperform.

Why might individual departments prefer sequential product development?

A firm can obtain new products in two ways: acquisition or new- product development.

Superior Luggage Company has undertaken the task of identifying its products in the decline stage of the PLC.Which of the following should NOT be done in the identification process?

P&G has sold off a number of lesser or declining brands such as Oxydol detergent and Jif peanut butter.In these examples,management decided to the products.