Exam 20: Introducing New Market Offerings

A relative product failure loses money,but its sales cover all its variable costs and some of the fixed costs associated with the product rollout.

After management develops the product concept and marketing strategy,it can evaluate the proposal's business attractiveness.Management needs to prepare sales,costs,and profit potentials.The first step is to estimate total sales.Describe what is included in estimating total sales.

Concept testing entails presenting consumers with an elaborated version of the concept.Consider the scenario: "Our product is a powdered mixture that is added to milk to make an instant breakfast that gives the person all the needed nutrition along with good taste and high convenience.The product would be offered in three flavors (chocolate,vanilla,and strawberry)and would come in individual packets,six to a box,at $2.49 a box." From this information,respondents would answer questions that would indicate what about the concept

A GO-error occurs when the company permits a poor idea to move into development and commercialization.Identify the three kinds of product failure that result from GO-errors.

New-product ideas can come from interacting with various groups and from using _________.

New-product development requires senior management to define business domains,product categories,and specific criteria.

Define conjoint analysis and identify the reason why marketers use this concept in market testing.

In testing consumer products,the company seeks to estimate four variables: trial,first repeat,adoption,and purchase frequency.

Mountain bikes developed as a result of youngsters taking their bikes up to the top of a mountain and riding down.When the bikes broke,the youngsters began building more durable bikes and adding things such as motorcycle brakes,improved suspension,and accessories.These youngsters would be considered ________.

A(n)________ loses money,but its sales cover all its variable costs and some of the fixed costs.

In consumer-goods market testing,the company seeks to estimate four variables.These four variables are: trial,first repeat,adoption,and ________.

"Our product is a powdered mixture that is added to milk to make an instant breakfast that gives the person all the needed nutrition along with good taste and high convenience.The product would be offered in three flavors and would come in individual packets,six to a box,at $2.49 a box." This is an example of ________.

Differentiate between incremental innovation and the creation of disruptive technologies.What kind of companies focus on each and what impact does each have on the marketplace

List the four methods of consumer-product testing and give an indication of their relative costliness.

________ means presenting the product concept,symbolically of physically,to target consumers and getting their reactions.

Most new-product activity is devoted to ________ existing products.

Companies use financial measures to evaluate the merit of a new-product proposal.The simplest to use is called ________ ,in which management estimates how many units of the product the company would have to sell to break even with the given price and cost structure.

Group brainstorming sessions should generally be allowed to run themselves.Trained facilitators tend to slow down the momentum of such sessions and quash innovation.

The ________ method of measuring customer preferences asks the consumer to rate each product on a scale so marketers can derive the individual's preference order and levels.

Total estimated sales are the sum of estimated first-time sales,replacement sales,and ________ for the new product.