Marketing Final Exam

Marketing Final Exam

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: even steps of the new-product development process. ANS: 1. 2. 3. 4. 5. 6. 7. PTS: 1 REF: 172-179 Communication KEY: CB&E Model Product New-product strategy Idea generation Idea screening Business analysis Development Test marketing Commercialization OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 3. Discuss five sources of new-product ideas. What are some techniques could be used to stimulate creative thinking for new-product ideas? ANS: The chapter discusses several sources of ideas: customers, employees, distributors, vendors, competitors, research and development, and consultants. The two approaches considered most useful for generating new-product ideas are brainstorming and focus group exercises. PTS: 1 REF: 173-174 Communication KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 4. Describe the idea screening stage of the new-product development process. Describe a common test used during the screening stage. ANS: The screening process is used as an initial filter to eliminate new-product ideas that are inconsistent with the organization’s new-product strategy or are inappropriate for some other reason. The review is usually done by a group formally appointed to screen new-product ideas. Most of the ideas are rejected at this stage. Concept tests are often used at the screening stage to evaluate product concept alternatives. These tests can be good predictors of early trial and repeat purchases for line extensions. They are not as accurate in predicting the success of new products that create new consumption patterns and require major changes in consumer behavior. PTS: 1 REF: 174-175 Communication KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 5. New-product ideas that survive the initial screening process move to the business analysis stage. List five of the many questions that are commonly asked during this stage. ANS: What is the likely demand for the product? What impact would the new product probably have on total sales, profits, market share, and return on investment? How would the introduction of this product affect existing products? Would it cannibalize existing products? Would current customers benefit from the product? Would the product enhance the image of the company’s overall product mix? Would the product affect current employees in any way? Would it lead to hiring more people or reducing the size of the workforce? What new facilities, if any, would be needed? How might competitors respond? What is the risk of failure? Is the company willing to take the risk? PTS: 1 REF: 175 Communication KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 6. After successful business analysis of a new product, the development stage begins. Describe the development process and explain the difference between laboratory testing and use testing. ANS: While a prototype product is being physically developed by the research and development or engineering department, the marketing departme...
View Full Document

This document was uploaded on 09/29/2013.

Ask a homework question - tutors are online