Question 1

Several factors hinder new-product development,including ________.

Accepted Answer

A)  cost of development 
B)  fragmented markets 
C)  shortage of important ideas in certain areas 
D)  capital shortages 
E)  all of the above 
A)  cost of development 
B)  fragmented markets 
C)  shortage of important ideas in certain areas 
D)  capital shortages 
E)  all of the above

Question 2

A company can add new products through acquisition or development.

Accepted Answer

A) True 
 B)False

Question 3

The degree to which the beneficial results of an innovation's use are observable or describable to others is called ________.

Accepted Answer

A)  divisibility 
B)  communicability 
C)  compatibility 
D)  relative advantage 
E)  complexity 
A)  divisibility 
B)  communicability 
C)  compatibility 
D)  relative advantage 
E)  complexity

Question 4

Sony used to enjoy a three-year lead on new products.Today,Matsushita will copy the product within six months,leaving very little time for Sony to recoup its initial investments.This is an example of ________,one of the factors hindering new-product development.

Accepted Answer

A)  faster required development times 
B)  capital shortages 
C)  cost of development 
D)  fragmented markets 
E)  shorter product life cycles 
A)  faster required development times 
B)  capital shortages 
C)  cost of development 
D)  fragmented markets 
E)  shorter product life cycles

Question 5

In a simulated test market,the firm finds 30 to 40 qualified shoppers and questions them about brand familiarity and preferences in a specific product category.

Accepted Answer

A) True 
 B)False

Question 6

Focus groups provide the most reliable data on the likelihood of success for radical innovations.

Accepted Answer

A) True 
 B)False

Question 7

Products designed for the world market,or at least to include neighboring countries,achieve significantly more profits,both at home and abroad.Thus companies should adopt an international focus in designing and developing new products.

Accepted Answer

A) True 
 B)False

Question 8

A company should motivate its employees to submit new ideas to a(n)________,whose name and phone number are widely circulated.

Accepted Answer

A)  idea manager 
B)  senior product manager 
C)  creative manager 
D)  advertising manager 
E)  top management person 
A)  idea manager 
B)  senior product manager 
C)  creative manager 
D)  advertising manager 
E)  top management person

Question 9

Company ________ and intermediaries are a particularly good source of ideas.These groups have firsthand exposure to customers and are often the first to learn about competitive developments.

Accepted Answer

A)  marketing departments 
B)  competitors 
C)  sales representatives 
D)  top management 
E)  customers 
A)  marketing departments 
B)  competitors 
C)  sales representatives 
D)  top management 
E)  customers

Question 10

_________ is the effect one person has on another's attitude or purchase probability.

Accepted Answer

A)  Effective influence 
B)  Direct influence 
C)  Market influence 
D)  Brand influence 
E)  Personal influence 
A)  Effective influence 
B)  Direct influence 
C)  Market influence 
D)  Brand influence 
E)  Personal influence

Question 11

A product concept is an elaborated version of the idea expressed in consumer terms.

Accepted Answer

A) True 
 B)False

Question 12

Fewer than ________ of all new products are truly innovative and new to the world.

Accepted Answer

A)  30% to 35% 
B)  20% 
C)  10% to 15% 
D)  25% 
E)  40% 
A)  30% to 35% 
B)  20% 
C)  10% to 15% 
D)  25% 
E)  40%

Question 13

Combining two product ideas or concepts to create a new offering,for example,oil change/lubrication facilities with cafés,is an example of ________.

Accepted Answer

A)  lateral marketing 
B)  internal marketing 
C)  mind mapping 
D)  morphological analysis 
E)  forced relationships 
A)  lateral marketing 
B)  internal marketing 
C)  mind mapping 
D)  morphological analysis 
E)  forced relationships

Question 14

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style,features,and performance.

Accepted Answer

A)  Expensive products 
B)  Inexpensive products 
C)  Commodity products 
D)  Frequently purchased products 
E)  Infrequently purchased products 
A)  Expensive products 
B)  Inexpensive products 
C)  Commodity products 
D)  Frequently purchased products 
E)  Infrequently purchased products

Question 15

Industrial manufacturers come close to using full test marketing when they give unlimited supply of the new product to the sales force to sell in a limited number of areas without promotional support.

Accepted Answer

A) True 
 B)False

Question 16

Your search for tires for your car has identified hundreds of choices.Included in these choices were some brand names that you were unaware of or whose brand you have never heard of before but that contained some innovative features.In the adoption process,what would your next step be

Accepted Answer

The next step in the adoption

Question 17

Your firm has chosen a few representative cities,and the sales force tries to sell the trade on carrying the product and giving it good shelf exposure.The company puts on a full advertising and promotion campaign.Total costs exceed $1 million dollars.Your firm has decided to conduct a ________.

Accepted Answer

A)  simulated test market 
B)  sales-wave research 
C)  controlled test market 
D)  test market 
E)  commercialization test 
A)  simulated test market 
B)  sales-wave research 
C)  controlled test market 
D)  test market 
E)  commercialization test

Question 18

One-on-one interviews and ________ discussions can explore product needs and reactions.

Accepted Answer

A)  focus-group 
B)  strategic group 
C)  customer relationship group 
D)  management 
E)  advertising agency 
A)  focus-group 
B)  strategic group 
C)  customer relationship group 
D)  management 
E)  advertising agency

Question 19

Fewer than 10% to 15% of all new products are truly innovative and new to the world.In producing a new-to-the-world product,as opposed to a brand or line extension,a firm and a market face increased pressures in what two areas

Accepted Answer

A firm and the marketplace fac

Question 20

In controlled test marketing,a research firm manages a panel of stores that will carry new products for a fee.

Accepted Answer

A) True 
 B)False

Exam 20: Introducing New Market Offerings

Several factors hinder new-product development,including ________.

A company can add new products through acquisition or development.

The degree to which the beneficial results of an innovation's use are observable or describable to others is called ________.

Sony used to enjoy a three-year lead on new products.Today,Matsushita will copy the product within six months,leaving very little time for Sony to recoup its initial investments.This is an example of ________,one of the factors hindering new-product development.

In a simulated test market,the firm finds 30 to 40 qualified shoppers and questions them about brand familiarity and preferences in a specific product category.

Focus groups provide the most reliable data on the likelihood of success for radical innovations.

Products designed for the world market,or at least to include neighboring countries,achieve significantly more profits,both at home and abroad.Thus companies should adopt an international focus in designing and developing new products.

A company should motivate its employees to submit new ideas to a(n)________,whose name and phone number are widely circulated.

Company ________ and intermediaries are a particularly good source of ideas.These groups have firsthand exposure to customers and are often the first to learn about competitive developments.

_________ is the effect one person has on another's attitude or purchase probability.

A product concept is an elaborated version of the idea expressed in consumer terms.

Fewer than ________ of all new products are truly innovative and new to the world.

Combining two product ideas or concepts to create a new offering,for example,oil change/lubrication facilities with cafés,is an example of ________.

________ exhibit replacement cycles dictated by physical wear or obsolescence associated with changing style,features,and performance.

Industrial manufacturers come close to using full test marketing when they give unlimited supply of the new product to the sales force to sell in a limited number of areas without promotional support.

Your search for tires for your car has identified hundreds of choices.Included in these choices were some brand names that you were unaware of or whose brand you have never heard of before but that contained some innovative features.In the adoption process,what would your next step be

Your firm has chosen a few representative cities,and the sales force tries to sell the trade on carrying the product and giving it good shelf exposure.The company puts on a full advertising and promotion campaign.Total costs exceed $1 million dollars.Your firm has decided to conduct a ________.

One-on-one interviews and ________ discussions can explore product needs and reactions.

Fewer than 10% to 15% of all new products are truly innovative and new to the world.In producing a new-to-the-world product,as opposed to a brand or line extension,a firm and a market face increased pressures in what two areas

In controlled test marketing,a research firm manages a panel of stores that will carry new products for a fee.

Defining Marketing for the 21st Century

Developing Marketing Strategies and Plans

Gathering Information and Scanning the Environment

Conducting Marketing Research and Forecasting Demand

Creating Customer Value, Satisfaction, and Loyalty

Analyzing Consumer Markets

Analyzing Business Markets

Identifying Market Segments and Targets

Creating Brand Equity

Crafting the Brand Positioning

Dealing with Competition

Setting Product Strategy

Designing and Managing Services

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications:

Managing Personal Communications:

Tapping into Global Markets

Managing a Holistic Marketing Organization

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