Developing and Managing Products
are line extensions more common than new products?
are higher risk and more expensive.
are guaranteed to succeed in the marketplace.
are less expensive and lower-risk.
require no market research.
to existing products are very easy.
has expanded to Diet Coke, Cherry Coke, and Caffeine-free Coke, to name a few.
These are examples of
___________ is the development of a product that is closely related to one or
more products in the existing product line but is designed specifically to meet
somewhat different needs of customers.
the manufacturer of Cool Whip were to introduce an orange-flavored Cool Whip
and still continue to produce all of its other Cool Whip products, this would
be an example of
is the development of a product that is closely related to one or more products
in a firm's existing product line but is designed specifically to meet somewhat
different customer needs.
is the primary distinction between a line extension and a product modification?
product modification results in a completely new product while a line extension
is simply changing an old product.
both cases an existing product is altered, but the alteration is more dramatic
with a product modification than it is with a line extension.
extensions are designed to better meet the needs of the existing market segment
while product modifications target entirely new segments of the market.
product modifications, the original product is replaced in the product line
while both the old and the new products remain in the case of line extension.
extensions are strictly aesthetic changes to an existing product whereas
product modifications consist of changes in quality and functionality.
product modification, the first issue to consider is whether
customers can perceive that a product modification has been made.
product is modifiable.
will make the product more consistent with customers' desires.
will provide greater satisfaction to the consumer.
product modification, three conditions must be met to improve a firm's product
mix: the product must be modifiable, customers must be able to perceive that a
modification has been made, and
should make the product more consistent with customers' desires.
companies should not be aware of planned product modifications.
should change customers' desires to provide greater satisfaction.
must perceive the modification as a reasonable and necessary action.
costs and materials needed should be limited.
modifications are changes that relate to a product's
Flooring found a supplier of very inexpensive fibers that could be used to
produce low-grade carpeting at a very low cost. Because Bauman had been facing
stiff competition in the medium-grade carpet industry, it started using the new
material in all of its carpeting and reducing its prices. This is an example of
of the following types of product modifications inevitably tend to cause firms
to reduce costs in some of the organization?
that affect a product's versatility, effectiveness, convenience, or safety are
called ___________ modifications.
of the following is the best example of a functional modification?
puts more of a higher-grade chicken in its classic chicken noodle soup.
smoke alarm is modified to be more sensitive to smoke at farther distances.
uses a battery that allows its cell phones to charge back up more quickly.
manufacturer of the primer and sealer, Kilz, introduces an odorless variety.
changes the ingredients in its cat food to a taste that is preferred by most
modifications usually require that the product be
to its functions.
Conair adds an electrical component that automatically shuts off its curling
irons when they have been left on for more than one hour. This improvement
would best be classified as a(n)
that affect the sensory appeal of a product by altering its taste, texture,
sound, smell, or visual characteristics are called ___________ modifications.
design of its new plasma television sets with smoked-glass control panel covers
and other visual changes would be classified as a(n) ___________ modification.
major drawback to using aesthetic modifications is
cost of the modifications.
the value of the modification is determined subjectively.
need for redesign of the product.
possible decrease in market share.
there is no differentiation for the product in the market.
Conway School Furniture Company provides standard primary school chairs in new
colors to match the interiors of schools, this modification is most likely to
be viewed as a(n) __________ modification.
buyers choose certain types of products by the way they look, smell, taste, or
sound, marketers should focus most on appropriate
new products is risky and so is
tabs on the actions of competitors.
introducing new products.
new product ideas.
customers' concerns about products.
complex product development process, including an extensive business analysis
to determine the possibility of success, are hallmarks of a
genuinely new product—like the iPhone once was—offers
prices than existing products.
least two new product features.
benefits to consumers.
value than existing products.
least two new product features at a lower price.
of the following are major steps in developing new products except
of competitors' efforts.
Steakhouse wants to expand its line of food products. The managers sent surveys
to customers to determine which food items would appeal to them. Outback is
currently in the __________ phase of new-product development.
marketers at Nabisco meet to identify the types of snacks that young people
want, they are engaging in which phase of new-product development?
begin to make decisions about labeling, packaging, branding, pricing, and
about cannibalization of current product sales must be addressed in the
___________ phase of the new-product development process.
step in developing new products involves determining whether the product idea
is compatible with company objectives, needs, and resources on a general level?
of competitor's efforts
group of managers has been assigned the task of developing a new product, has
listed several good ideas, and is now in the process of assessing each idea to
determine whether it is consistent with the firm's overall objectives and
resources. The managers are at what stage of the new-product development
with other phases of the new-product development process, the largest number of
new-product ideas is rejected during the ___________ phase.
phase of new-product development in which a small sample of potential buyers
are presented with a product idea through a written or oral description in
order to determine their attitudes and initial buying intentions regarding the
product is called
such as “How often would you buy this product?” and “Which features are of
little or no interest to you?” are often proposed during
of the following is the stage of the new-product development process where
customers are first exposed to the new product idea?
at Starbucks have generated several ideas for new food products. Management has
assessed whether these ideas are consistent with Starbuck's objectives and
resources. Several product ideas were dropped after this analysis. The next
stage of development for the remaining product ideas is
of the following phases of new-product development is likely the least costly
for the firm?
tells Jeff that she likes his team's idea about a new three-lace running shoe
but wants him to put together some figures regarding anticipated sales, costs,
and resulting profits. She is asking Jeff to proceed to which stage of the
new-product development process?
analysis is a tool that marketers are likely to employ during the ___________
stage of the new-product development process.
the demand strong enough?” is a question that marketers ask during the
___________ phase of new-product development.
which stage of new-product development does the firm consider profitability?
Justin works on the prototype of a new action-oriented computer game, he is
engaging in which phase of the new-product development process?
test marketing should follow which stage in the new-product development
much quality should we build into the product?” is a question that marketers
ask during the ___________ phase of new-product development.
phase of the new-product development process when the organization determines
the technological feasibility of producing the product at a cost that results
in a reasonable selling price is
building a prototype of his new device, Brad is asked to conduct rigorous
functional testing to see if the device meets performance and safety
qualifications. This is part of the ____ phase of the new-product development
a company has created a prototype during the product development stage, its
performance, or ___________ must be tested.
failure is a concern of all marketers. Which of the following phases of
new-product development is best able to measure this concern?
managers at Cincinnati Microwave believe that they have a successful working
prototype of their new radar detector and plan to go directly to regional
commercialization of the new product. In this instance, they are contemplating
skipping the __________ phase of the new-product development process.
an extension of the screening stage.
come immediately after business analysis.
that the product will not fail.
a sample launching of the entire marketing mix.
competitors from copying the product.
the true statement concerning test marketing.
marketing is simply an extension of the screening and developing stages.
marketing should be conducted after all the marketing mix variables have been
marketing is a limited introduction of the product in areas chosen to represent
the intended market.
the product is successful in the test market, then it is ensured of success
upon total introduction.
corporations usually launch test-marketing efforts in one small area at a time.
and cost analyses occur most frequently in what stage of the new-product
has a new flavor of soft drink that it wants to test to determine reactions of
probable buyers. Which of the following test-market characteristics would be
least useful to PepsiCo when testing the new soft drink?
are research and audit services available.
would be cooperative.
efforts would not be easily jammed by competitors.
is a major industry in the area.
city has stable year-round sales of soft drinks.
and Ralph at Tablerock Foods believe they have come up with a delicious low-calorie
dessert, but they have some doubt about which of two promotional and pricing
campaigns will be better received by consumers. In this instance, they probably
should proceed to the ___________ stage of the new-product development process.
interference with a test-marketing program is called
Jason Carter, product manager at SeaRay Boats, became aware that Bass Boats,
Inc., was in the process of test marketing a new line of shallow-water fishing
boats in the southeast region, he might want to engage in ___________ to reduce
the validity of the other firm's results.
disadvantage of test marketing a new product is that
product is distributed on a regional basis.
may copy the product.
results give little indication of the product's future success.
advertising, and packaging cannot be varied from market to market.
might fail before it can be commercialized.
and Evan are preparing budgets for a new product as well as finalizing plans
for the full-scale marketing and manufacturing of the new Genie-Vac. They are
in the ____ phase of the new-product development process.
Natalie and Chris analyze the results from the recently completed test market
to determine if any changes in the marketing mix are needed, they are in the
___________ phase of the new-product development process.
in the commercialization phase, marketers must make decisions about
repairs, and replacement parts.
features and breakeven points.
safety, and convenience.
proposed marketing mix variables.
ideas to further pursue.
a new product is launched in stages during commercialization. This gradual
introduction of the product is known as
of the following is a disadvantage of gradually introducing a product to
reduces the risk of introducing a new product.
is easier logistically to introduce it all at once.
is difficult to slow down production enough for a gradual introduction.
allows competitors to monitor the results of the new product.
prevents product differentiation based on geographical differences.
new variety of Doritos is initially introduced in Ft. Worth, Texas; Columbia,
South Carolina; Peoria, Illinois; and Spokane, Washington. After its initial
success, Frito Lay markets the Doritos in those entire states, then the
adjacent states, and finally the entire country. Frito-Lay is using a _____ for
its new variety of Doritos.
major ways in which marketers engage in product differentiation are
quality, product design and features, and product support services.
quality, product support services, and packaging.
support services, product design and features, and product positioning.
positioning, product quality, and product management.
positioning, product design and features, and product promotion.
recently purchased a pair of sunglasses because she liked their quality, styling,
and price. Her friend Katie purchased an almost identical pair, except that
Katie's sunglasses had the name “Armani” imprinted on the side. Elena probably
based her purchase decision on ___________, whereas Katie apparently based her
decision on ___________.
product differences; perceived product image
product image; product quality
value; perceived product image
design; product quality
ability of a product to provide the same level of quality over time is called
overall characteristics of a product that allow it to perform as expected in
satisfying customer needs is
thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes
Benz, he feels the quality of a Lexus is not as high. This demonstrates that
the dimension of _____ is relative or difficult to describe without a basis of
and ___________ are important characteristics of quality for consumer markets,
and ___________ and ___________ are important characteristics of quality for
of use; technical suitability/ease of repair
suitability/reasonable price; trusted brand name/ease of repair
suitability; company reputation/ease of repair
of maintenance/company reputation; durability/technical suitability
brand name/ease of repair; reliability/company reputation
adds features to its bicycles no other companies offer in order to create
determining how a product is conceived, planned, produced, and even its
physical appearance and its specific characteristics, one is really talking
about the product's
and consistency of quality.
to meet customer service needs.
styling, and level of quality.
styling, and features.
three major ways to modify a product include
quality, and functional changes.
generations, and upgrades.
size, and quantity modifications.
product features, and product design.
quantity, and design.
Ford adds a driver-side sliding door, side impact airbags, and a small
television with DVD player to its Freestar Minivan, it is differentiating its
product based on
of the following is the best definition of product features?
things a product does that provide benefits to the customer
efforts or activities a company provides that add value to a product
design characteristics that allow a product to perform certain tasks
a product is conceived, planned, and produced with the necessary functions
physical appearance of a product
differentiate their products, companies sometimes emphasize the product support
services that they offer. This is especially true when
company's prices are higher than the competition's.
company introduces a new product.
are willing to pay for product support services.
perceive all products in a market to have essentially the same quality, design,
quality of the company's products is inferior to the quality of competing
Buy differentiates its product offerings from its competition with stores like
Sam's, by offering delivery and installation, financing arrangements, and
repairs. Best Buy is differentiating through
Hewlett-Packard provides its customers with a help line for computer questions
and problems, it is differentiating itself through
of its level of quality.
help line feature.
deletion can best be described as the process of deleting a product from the
product mix when it
perceived as a failure by top management.
reviewed negatively by a systematic review board.
production costs and decreases profits.
longer responds to promotional efforts.
longer satisfies a sufficient number of customers.
to be an easy task for most organizations.
be opposed by management.
a matter of indifference to customers.
occurs only with convenience items.
suggested approach to deleting products, in which each product is evaluated
periodically to determine its impact on the overall effectiveness of the firm's
product mix, is called a(n)
product deletion process is similar to the ___________ step of the new-product
development process because both involve deciding whether the product should be
in the product mix based on an assessment of sales, costs, and profits.
of a particular brand of ice cream have decided to delete their line of ice
cream bars. They will do so by letting the product decline and not change the
current marketing strategy. This method of deletion is called
7-UP decides Diet 7-Up with Vitamins is not reaching profit expectations and
simply allows the product to decline without any change in marketing strategy,
it is using a ____ deletion strategy.
runout policy of product deletion
the product decline without changing the product strategy.
an immediate-drop decision.
any strengths left in the product.
the price of the product continually to secure as much profit as possible
before the product is priced out of the market.
when production cannot keep pace with demand because of material shortages.
an unprofitable product immediately is the best strategy when
advertising and promotional efforts have been exhausted.
have a negative outlook on other products.
are too great to prolong the product's life.
product's performance cannot be improved.
is low compatibility with the firm's business strategies.
Kraft General Foods offered you a position in which you would have total
marketing responsibility for all of its cheese products, this position would
probably hold the title of __________ manager.
______ is responsible for a product, product line, or several distinct products
in an interrelated group within an organization.
brand manager in a multiproduct firm would be responsible for
of a specific brand.
brands within a product line.
the products of the firm.
products in the brand-line group.
brands made by the firm.
Megan Roberts were given total marketing responsibility over Diet Cherry 7Up,
she would hold the position of __________ manager.
Bolger of U.S. Hospital Supply Corporation has responsibility for managing the
marketing activities for products aimed at nursing homes and extended care
facilities. Kyle's job is that of a(n)
Mayo is an accountant at Ralston Purina. However, he is currently working with
a group to determine the feasibility of a new brand of hot breakfast cereal.
After the product is launched, Luis will return to the accounting department.
His present position can be described as a
of a venture team.
members of a venture team come from
research and development department.
production and finance departments.
functional areas of an organization.
following organizational approaches accomplish tasks necessary to develop and
manage products: market manager approach, product manager approach, and the
from marketing, Manuel from finance, Tony from production, Cynthia from
engineering, and Alexandra from research and development were put together by
their company to develop a new low-calorie, high-nutrition snack treat. These
five people are a(n) __________ at their company.
Use the following to answer questions
Cheetos Fat-free Crunchies is a product
developed through advanced technology. Cheetos engineered a technique for
making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos
introduced Fat-free Crunchies in limited markets in 2008 and began national
distribution in 2009.
About 18 months later, a series of
competitors' ads was run to counter claims that Cheetos Crunchies actually
contained 1.5 grams of fat, and that they contained preservatives and
additives. Research showed that the taste of Cheetos Crunchies was also
perceived negatively by some people. To save the product, Cheetos reduced the
remaining fat to 0 grams, took out the preservatives, and improved the taste.
the taste of CheetosCrunchies was a(n)
produces several cheese snack products and is considering a new Cheetos brand
of crackers. This new Cheetos brand of
crackers would most likely be an example of
2008, Cheetos was in which phase of new-product development?
that Cheetos stops production of Cheetos Fat-free Crunchies and sells all of
its remaining inventory to a warehouse club. This would be an example of a(n)
for the maturity phase.
out product deletion strategy.
product deletion policy.
to test marketing.
Use the following to answer questions
Jonathan Moore, president of Polar
Manufacturing Company, has just reviewed the performance reports for the
previous year and sees that there are some areas in which the company needs to
improve. He specifically feels they
could do a better job in managing Polar's product mix. Jonathan calls a meeting
of all the managers responsible for each of the product lines that Polar
currently manufactures. The group
decides that they need to eliminate the complete industrial product line of ice
chests, and plan to do so by letting the product decline without any changes in
the marketing strategy or product. The
group also decides to delete Polar's line of personal thermal underwear,
however this product is to be discontinued within the week due to its
unprofitability. While discussing these
strategies, the group has also uncovered several customer groups for which new
products could be developed. The
managers decide to assemble a group of people from all functional areas of the
company and give them the responsibility for all aspects of the new-product development.
decision to delete the industrial product line of ice chests is an example of
deleting a product through a(n) _____, while the decision to drop the thermal
underwear line is an example of a(n) ______.
management is currently in which stage of new product development?
group of people that management has assembled to take on the task of
new-product development is best described as
product development task force.
marketing development team.
brand management team
some products are not doing well, Jonathan Moore thinks that the company should
set up a procedure to evaluate each product so that management will know when
and how a product should be discontinued. He is suggesting a