MKT 201 CH. 7 Developing and Managing Offerings

FALSE
Price entails how much money a customer gives up to obtain an offering
TRUE
The risk that there is a better idea that gets ignored because the firm has invested in the idea at hand.
ROLLING LAUNCH
A rolling launch might make sense if the company’s service technicians need training.
TRUE
A skimming price strategy involves setting a high initial price for a product, to more quickly recoup the investment related to its development and marketing.
TRUE
The stage in the product life cycle when the demand and sales first increase is known as the growth stage.
TRUE
Not all products go through all stages of the product life cycle.
TRUE
Firms that manufacture cereals and snacks typically utilize mass marketing efforts.
TRUE
Organizations want consumers to perceive that a new offering is desirable or better than existing products.
Investment; opportunity
A company must balance an offering’s _____ risk against the offering’s _____ risk.
MATURITY
Most consumer products are in the _____ stage of their life cycle, when their buyers are repeat purchasers versus new customers.
less costly than adaptation.
Standardization is typically:
PLATFORM; BRAND
A line extension occurs when a company comes out with another model based on the same _____ and _____ as one of its other products.
Personal value equation
To understand if a product offering is financially feasible to justify investing in it, companies often consider the customer’s _____.
Feature specification
Quality function deployment is a process utilized in which step of the product development process?
ALPHA TESTING
_____ ensures that a product meets its specifications in a variety of environments determined by the company.
BETA TESTING
_____ not only tests whether the offering works as advertised, but it also tests the offering’s delivery mechanisms, service processes, and other aspects of marketing the product.
marketing communication plan
While Mark is performing beta tests on his company’s new product, the _____ is being developed and tested that will be used to launch the product.
Market test
A company may induct a(n) _____ to ensure that the launch of a new product reaches buyers, gets positive feedback, and generates sales of the product or service.
Decreasing the package size or the amount of the product in the packages to save money and keep prices from rising too much.
Downsizing entails:
PERSONAL SELLING
To reach wholesalers and retailers, firms utilize _____.
the door opens for competitors to enter the market.
When demand is higher than supply, marketers are most concerned with the fact that
EARLY ADOPTERS
A price skimming strategy often attracts consumers who are _____.
finding new uses for a product
Modifying the target market helps a company attract different customers by:
LEAD USER
Customers who are good at generating new product ideas or applications of products are called _____.
INVESTMENT RISK
_____ refers to the possibility that the company will fail to earn the appropriate return on the money and effort it puts into the new product.
if the product fits with the image and corporate strategy.
In the idea screening stage, companies evaluate new offerings by determining:
IDEA SCREENING
In which of the following stages of the new product development process does concept testing occur?
what consumers want and need
The feature specifications process begins with a strong understanding of:
development
A firm considers the product’s manufacturing process during which stage of the product development process?
effective and less expensive
In terms of a manufactured offering, using the same technology platform as another product can be:
MATURITY
The stage in the product life cycle when the market is saturated with competitors is known as the _____ stage.
Skimming pricing strategy
A(n) _____ is utilized to get back the money invested in creating a new product offering.
GROWTH
The stage in the product life cycle which attracts competitors who enter the market very quickly is known as the _____ stage.
GROWTH
The stage in the product life cycle when a successful product first becomes profitable is known as the _____ stage.
PROFESSIONAL SELLING
For more technical or expensive products such as computers or plasma televisions, many firms utilize _____.
INTRODUCTION
Heavy costs are associated with the _____ stage of the product life cycle.
Educating potential customers about its value and benefits.
Which of the following are often involved in an organization’s objectives during the introductory stage?
INTRODUCTION
The stage in the product life cycle when an organization must have enough distribution outlets to get the product to the customers is known as the _____ stage.
placing the product in a limited number of distribution outlets.
Marketing efforts associated with skimming price strategies include:
GROWTH
The stage in the product life cycle when promotions focus on the specific benefits the product offers and its value relative to competitive offerings is known as the _____ stage
MATURITY
Modifying the product, such as changing its packaging, size, flavors, colors, or quality can also extend the product’s _____ stage.
TRUE
The size of a company will affect how the different stages of their new product development process are conducted.
TRUE
In B2B markets, customers are typically a large source of new product ideas.
FALSE
New product ideas typically move down the supply chain.
FALSE
Idea generation is typically the most expensive step in the process of developing new offerings.
TRUE
The purpose of idea screening is to try to avoid mistakes early in the development process
FALSE
Focus groups are conducted after the testing stage of the new offerings development process.
FALSE
Depth interviews involve gathering eight to twelve consumers and gauging their reaction to a product/service concept.
TRUE
The purpose of concept testing is to get early consumer feedback before investing too much money in an offering that won’t work.
FALSE
Financial feasibility is the degree to which the company can actually make and service the product.
FALSE
Quality function deployment is the process whereby a company starts with the innovation and then designs an offering.
FALSE
Testing is a relatively inexpensive step in the product development process.
FALSE
Milestones utilized by companies to evaluate product performance are typically the same within an industry.
TRUE
Most companies put new offering ideas through a seven-step process.
FALSE
The growth stage is characterized by decreasing sales, less competitors, and low profits.
TRUE
A company must decide whether to keep, modify, or drop a product in the decline stage.
FALSE
Divesting refers to when a company reduces investment in a product or service.
FALSE
The stage of the product life cycle when profits are virtually nonexistent is known as the decline stage.
FALSE
The product life cycle is the exclusive tool used by marketers to help them manage the stages of a product’s acceptance and success in the marketplace.
TRUE
Companies introducing products and services abroad typically must have the financial resources to make a long-term commitment.
FALSE
A price skimming strategy is often used for products such as cereals.
FALSE
Firms develop strategies to extend the maturity stage of their products by modifying their target markets, their offerings, or their marketing strategies
FALSE
In a penetration pricing strategy, the high price entailed must be consistent with the nature of the product as well as the other marketing strategies being used to promote it
FALSE
The price of the product itself typically goes down during the growth stage.