Exam 12: Developing and Managing Products

Scenario 12.2 Use the following to answer the questions. Jonathan Moore,president of Polar Manufacturing Company,has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve.He specifically feels they could do a better job in managing Polar's product mix.Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures.The group decides that they need to eliminate the complete industrial product line of ice chests,and plan to do so by letting the product decline without any changes in the marketing strategy or product.The group also decides to delete Polar's line of personal thermal underwear,however this product is to be discontinued within the week due to its unprofitability.While discussing these strategies,the group has also uncovered several customer groups for which new products could be developed.The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. -Refer to Scenario 12.2.The group of people that management has assembled to take on the task of new-product development is best described as

If Stonefield School Furniture Company provides standard primary school chairs in new colors to match the interiors of schools,this modification is most likely to be viewed as a(n)____ modification.

Brand and product managers operate cross-functionally.

A brand manager is a type of product manager.

Scenario 12.1 Use the following to answer the questions. Cheetos Fat-free Crunchies is a product developed through advanced technology.Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer.Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013. About 18 months later,a series of competitors' ads was run to counter claims that Cheetos Crunchies actually contained 1.5 grams of fat,and that they contained preservatives and additives.Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people.To save the product,Cheetos reduced the remaining fat to 0 grams,took out the preservatives,and improved the taste. -Refer to Scenario 12.1.Suppose that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of its remaining inventory to a warehouse club.This would be an example of a(n)

A genuinely new product-like the iPhone once was-offers

Why is it often difficult for organizations to delete products?

Bauman Flooring found a supplier of very inexpensive fibers that could be used to produce low-grade carpeting at a very low cost.Because Bauman had been facing stiff competition in the medium-grade carpet industry,it started using the new material in all of its carpeting and reducing its prices.This is an example of a(n)

The sum of all the product's physical characteristics is called product quality.

What is concept testing,and why is it important?

If Jason Carter,product manager at SeaRay Boats,became aware that Bass Boats,Inc. ,was in the process of test marketing a new line of shallow-water fishing boats in the southeast region,he might want to engage in ____ to reduce the validity of the other firm's results.

Warranties and customer training are examples of customer services.

Discuss the advantages and problems associated with test marketing.

Compare and contrast line extensions and product modifications.

Systematic reviews of a company's product mix aid in determining when product deletion is necessary.

The overall characteristics of a product that allow it to perform as expected in satisfying customer needs is

A suggested approach to deleting products,in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix,is called a(n)

Automobile makers rely heavily on aesthetic modifications.

Functional modifications help an organization achieve and maintain a progressive image.

Elena recently purchased a pair of sunglasses because she liked their quality,styling,and price.Her friend Katie purchased an almost identical pair,except that Katie's sunglasses had the name "Armani" imprinted on the side.Elena probably based her purchase decision on ____,whereas Katie apparently based her decision on ____.