Chapter 8

“A berry flavored, low-calorie drink appealing to women who need a quick energy boost while on the go” would be considered a:

• Product idea

• Product concept

• Product image

• Marketing strategy statement

Customers, competitors, distributors and suppliers, and others are considered which type of sources for new product ideas?

• Primary sources

• Secondary sources

• Internal sources

• External sources

Before moving further with the new-product development process, you are asked to review the sales, costs, and profit projections for a new product to find out whether they satisfy your company’s objectives. Which step of the new-product development process is this?

• Idea generation

• Business analysis

• Quantitative analysis

• Qualitative analysis

If a product concept survives the business analysis, it moves into the ______ stage of the new product development process.

• Concept testing

• Market testing

• Market development

• Product development

A new breakfast cereal is promoted and sold in a single city for a short time. If successful, the product has passed the ______ stage of the new product development process.

• Commercialization

• Regional rollout

• Test market

• Concept testing

Several successful companies develop new products that focus on solving consumers’ problems to create more satisfying experiences. Which approach to new-product development is this?

• Externally-focused

• Customer-centered

• Simplistic-centered

• Problem-focused

Product X is currently experiencing rapid market acceptance and increasing profits. Which stage of the product life-cycle does this represent?

• Introduction

• Growth

• Maturity

• Decline

Styles, fads, and fashions have their own unique life cycles. Which of these product life cycles typically lasts the longest?

• Style

• Fad

• Fashion

• The overall length of the PLC does not vary; only the amount of time spent in each stage of the PLC varies between the three.

Your product gradually gains popularity and seems to have settled into a long maturity, yet you soon realize that you must sell it abroad to keep sales healthy. In other words, you must:

• Modify the product

• Modify the market

• Modify the marketing mix

• Modify the promotion budget

Sales of Product X have been declining steadily. Competitors show no sign of leaving the market, and advertising costs are moderate. The best strategy would probably be to:

• Maintain the brand

• Harvest the brand

• Drop the brand

• Reinvigorate the brand