Chapter 9: PRODUCT MANAGEMENT & NEW PRODUCT DEVELOPMENT

1. According to the text, what is a key factor for firms to achieve success and growth?

• Imitating competitor's products

• Developing new products and managing existing ones

• Maintaining the same marketing strategy over time

• Focusing only on cost reduction

1. What are the four stages of the product life cycle?

• Introduction, growth, maturity, and renewal

• Development, introduction, maturity, and decline

• Market introduction, market growth, market maturity, and sales decline

• Idea generation, screening, development, and commercialization

1. During which stage of the product life cycle do industry profits typically begin to decline?

• Market introduction

• Market growth

• Market maturity

• Sales decline

1. In the market introduction stage, what is the primary focus of promotion?

• Persuading customers to buy a specific brand

• Informing potential customers about the product concept

• Emphasizing price competition

• Reducing promotional spending

1. What happens to competition during the market maturity stage?

• It decreases

• It stays the same

• It increases

• New competitors are prohibited from entering

1. What is a characteristic of the sales decline stage?

• Increased promotion spending

• Rising prices

• New products replace the old

• Less competition

Why is it important for marketing managers to understand the product life cycle?

• To predict the exact duration of each stage

• To develop appropriate marketing strategies for each stage

• 1. To avoid introducing new products

• Because all products have the same life cycle length

1. What is a "new product" as defined in the text?

• Only revolutionary inventions

• A product that is new to any company

• A product that has never been sold before

• A product with only minor variations

1. Which type of new product requires the LEAST amount of change in customer behavior?

• Discontinuous innovation

• Dynamically continuous innovation

• Continuous innovation

• Disruptive innovation

1. Which type of innovation often creates a new product-market and life cycle?

• Continuous innovation

• Dynamically continuous innovation

• Discontinuous innovation

• Sustaining innovation