Learning Objectives - New Product Development and Marketing

Companies find and develop new product ideas through which of the following methods?

• Market research and brainstorming sessions

• Ignoring customer feedback

• Relying solely on old products

• Avoiding innovation

Many products fail for which of the following reasons?

• Lack of market research

• Excessive demand

• Perfect competition

• Unlimited resources

The steps in the new-product development process are:

• Idea generation, idea screening, concept development and testing, marketing strategy development, business analysis, product development, test marketing, commercialization.

• Market research, product launch, customer feedback, sales analysis.

• Brainstorming, product design, advertising, sales promotion.

• Product planning, pricing, distribution, after-sales service.

The stages of the product life cycle are:

• Introduction, Growth, Maturity, Decline

• Planning, Production, Marketing, Sales

• Design, Launch, Expansion, Termination

• Research, Development, Launch, Retirement

Marketing strategies change during the product’s life cycle in which of the following ways?

• They adapt to different stages such as introduction, growth, maturity, and decline.

• They remain the same throughout all stages.

• They only focus on the introduction stage.

• They ignore the decline stage entirely.

According to the passage, a firm can obtain a new product in how many ways?

• One

• Two

• Three

• Four

Fill in the blank: One way a firm can obtain a new product is through ________, by buying a company, a patent, or a license to produce someone else’s product.

• acquisition

• innovation

• franchising

• merger

Which of the following is an example of acquisition as described in the passage?

• The Walt Disney Company bought Pixar in 2006

• A company invents a new product in its lab

• A company opens a new store

• A company hires new employees

By new product mean original products, product improvements, product modifications and new brands that the firm develops through its own ________ and development efforts.

• research

• marketing

• distribution

• advertising

Fill in the blank: One reason why many products fail is that the market size may have been _________

• overestimated

• underestimated

• ignored

• miscalculated