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MKT101 ch9

Total questions: 25

Worksheet time: 6mins

Name
Class
Date
1.

What are the two ways that a company can obtain new products?

a)

line extension and brand management

b)

internal development and brand management

c)

new-product development and acquisition

d)

service development and product extension

e)

market mix modification and research and development

2.

Product improvements, product modifications, and original products can all be classified as

a)

pioneer products

b)

product concepts

c)

product ideas

d)

new products

e)

test products

3.

Which of the following is NOT a potential reason for a new product to fail?

a)

an underestimated market size

b)

a poorly designed product

c)

an incorrectly positioned product

d)

higher than anticipated costs of product development

e)

ineffective advertising

4.

Which of the following is NOT a challenge presented by the product life cycle that a firm must face?

a)

All products eventually decline.

b)

Changing tastes, technologies, and competition affect the marketing of the product as it passes through lifecycle stages

c)

A firm must be good at developing new products to replace aging ones.

d)

A firm must be good at adapting its marketing strategies.

e)

It is difficult to plot the stages as a product goes through them.

5.

The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers.

a)

competitors, distributors, and employees; new styles

b)

customers, brands, products; product images

c)

customers, competitors, and markets; superior value

d)

product, marketing mix, and marketing strategy; functional features

e)

product life cycle, legal responsibilities, and social responsibilities; innovations

6.

New product development starts with

a)

idea generation

b)

idea screening

c)

concept development

d)

concept testing

e)

test marketing

7.

Executives, manufacturing employees, and salespeople are all examples of ________.

a)

external sources for new-product ideas

b)

internal sources for new-product ideas

c)

core members of innovation management systems

d)

research and development team members

e)

new-product committee members

8.

Your company decides to use internal sources for developing new product ideas. Which of the following would NOT be consulted?

a)

executives and professionals

b)

company records and data

c)

intrapreneurial programs

d)

suppliers

e)

salespeople

9.

Which of the following is perhaps the most important external source of new-product ideas?

a)

engineers

b)

customers

c)

competitors

d)

trade magazines, shows, and seminars

e)

distributors and suppliers

10.

Which of the following is NOT a recommended method for companies to tap into their customers as sources for new-product ideas?

a)

analyzing customer complaints and questions

b)

relying heavily on customers to know what types of technical products they need

c)

working alongside customers to get ideas and suggestions

d)

turning customers into co-creators

e)

putting customer-created products on the market

11.

Your firm asks you to consult external sources for new product ideas. All of the following are common external sources EXCEPT ________.

a)

customers

b)

suppliers

c)

competitors

d)

trade shows and magazines

e)

the firm's executives

12.

The purpose of idea generation is to create a ________ number of ideas. The purpose of succeeding stages is to ________ that number.

a)

small number; reduce

b)

small number; increase

c)

large number; increase

d)

large number; reduce

e)

limited number; sustain

13.

GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________, to arrive at a realistic number to adopt.

a)

business analysis

b)

idea generation

c)

concept testing

d)

idea screening

e)

concept development

14.

In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers.

a)

physical or symbolic

b)

prototype

c)

final

d)

market-tested

e)

commercial

15.

After concept testing, a firm would engage in which stage in developing and marketing a new product?

a)

idea screening

b)

marketing strategy development

c)

business analysis

d)

product development

e)

test marketing

16.

The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year.

a)

advertising

b)

promotion

c)

marketing budget

d)

positioning

e)

target market

17.

A review of the sales, costs, and profit projections for a new product to find out whether they satisfy the company's objectives is called a ________.

a)

business feasibility plan

b)

marketing strategy development

c)

business analysis

d)

product acceptance

e)

proposal

18.

During which stage of new-product development will management most likely estimate minimum and maximum sales to assess the range of risk in launching a new product?

a)

test marketing

b)

concept testing

c)

marketing strategy development

d)

business analysis

e)

product development

19.

Under what circumstances might it be wise for a company to do little or no test marketing?

a)

when a new product requires a major investment

b)

when management is not sure of the product

c)

when management is not sure of the marketing program

d)

when the product has no substitutes and is new in its category

e)

when the costs of developing and introducing the product are low

20.

A company getting ready to launch a new product must make several decisions. The company must first decide on

a)

whether to launch the product in a single location

b)

whether to launch the product in a region

c)

whether to launch the product into full national distribution

d)

when to time the new product introduction

e)

when to develop a planned market rollout

21.

The innovation management system approach yields two favorable outcomes: it helps create an innovation-oriented company culture, and it ________.

a)

clearly assigns responsibility for the process

b)

yields a larger number of new-product ideas

c)

guarantees successful products

d)

frees up senior management time

e)

requires less budget support

22.

________ is the product life cycle period when sales fall off and profits drop.

a)

Introduction

b)

Growth

c)

Maturity

d)

Decline

e)

Development

23.

All of the following are stages in the PLC EXCEPT ________.

a)

introduction

b)

adoption

c)

growth

d)

maturity

e)

decline

24.

Which stage of the typical consumer product life cycle is out of order below?

a)

product development

b)

introduction

c)

maturity

d)

growth

e)

decline

25.

Using the PLC concept to develop marketing strategy can be difficult because strategy is both a ________ and a(n) ________ of the product's life cycle.

a)

mirror image; cause

b)

cause; result

c)

result; mirror image

d)

beginning; end

e)

purpose; effect