Marketing Final Exam

Stage laboratory tests subject products to much more

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: nt begins to develop marketing strategies. Packaging, branding, and labeling decisions are made, while preliminary promotion, price, and distribution strategies are developed. Technical feasibility of manufacturing the product at a reasonable cost is also examined. Prototype product models are often laboratory and use tested during the development stage. Laboratory tests subject products to much more severe treatment than is expected by end users. Laboratory testing can ensure products conform to established safety standards. Use tests place the prototype in consumers’ homes or businesses for trial. PTS: 1 REF: 175-177 OBJ: 11-2 TOP: AACSB Communication KEY: CB&E Model Product MSC: BLOOMS Synthesis 7. After products and marketing programs have been developed for new products, they are usually tested in the marketplace. What is test marketing? How may a company benefit from the use of such marketing? How can test marketing cause problems for a company? ANS: Test marketing is a limited introduction of a product and a marketing program to determine the reactions of potential customers in a market situation. An advantage of test marketing is that it allows management to evaluate alternative strategies and see how well the various aspects of the marketing mix fit together. Test marketing may reduce risk by allowing modification of a marketing mix before national introduction or by withdrawal of a product with failure characteristics. However, test markets have several disadvantages: costs of test markets are high, it reveals the product to competitors, and a product’s success in a test market does not guarantee it will be a nationwide hit. PTS: 1 REF: 177 Communication KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 8. Discuss alternatives to traditional test marketing. ANS: Supermarket scanner testing (single-source research) is one test marketing alternative. Another alternative is simulated (laboratory) market testing. These tests entail showing people promotional materials for several products, including the test products. These people then shop at a mock or real grocery store, where purchases are recorded. Another alternative is online test marketing. Many firms are finding that the Internet offers a fast, cost-effective way to conduct test marketing. PTS: 1 REF: 177-178 Communication KEY: CB&E Model Strategy OBJ: 11-2 TOP: AACSB MSC: BLOOMS Synthesis 9. What is the final stage in the new-product development process? What tasks are set in motion during this stage? ANS: The final stage in the new-product development process is commercialization. The decision to commercialize sets several tasks in motion: ordering production materials and equipment, starting production, building inventories, shipping the product to field distribution points, training the sales force, announcing the product to the trade, and advertising to potential customers. PTS: 1 REF: 178 Communication KEY: CB&E Model Product OBJ: 11-2 TOP: AACSB...
View Full Document

This document was uploaded on 09/29/2013.

Ask a homework question - tutors are online