Mktg Ch. 11 Developing And Managing Products

The correct answer includes various categories of new products such as introducing completely new innovations, new product lines, additions to existing product lines, improvements or revisions to existing products, repositioned products, and lower-priced products. Replacement Products, Generic Products, and Obsolete Products are not accurate categories for new products.

Discontinuous innovations are the most radical type of innovation as they introduce entirely new products or services that create new markets, rather than incrementally improving existing ones.

New product lines refer to the introduction of products that a firm has not previously offered, allowing them to potentially expand their market reach or enter an existing market with a fresh product offering. It does not necessarily involve phasing out old products, referring to long-existing products, or exclusively limited to startup companies.

Additions to existing product lines involve introducing new products that complement or enhance an already established line of products, not removing, reducing prices, or introducing competing products.

Repositioned products refer to existing products that are marketed towards new markets or market segments, in contrast to new products targeting existing markets. This allows for expansion and growth within a company's product portfolio while leveraging existing brand recognition.

Launching a new product successfully requires long-term commitment, a company-specific approach, capitalizing on experience to achieve a competitive advantage, and establishing an environment that supports the new product strategy.

The New Product Development Process (Exam) is designed to carefully filter out unworkable ideas to ensure that resources are allocated efficiently towards viable product concepts.

New product ideas can come from various sources including customers, employees, distributors, competitors, vendors, research and development, or consultants. Both brainstorming and focus groups are common techniques used for generating new product ideas.

Idea Screening is the initial phase where ideas are evaluated and filtered based on certain criteria to eliminate unfeasible or non-viable ideas, helping to focus on more promising concepts.

In Business Analysis (DCSP), products that pass the screening process move to the business analysis stage where preliminary figures for demand, cost, sales, and profitability are calculated to assess the feasibility and potential success of the product.

During the development stage of the product development process, companies should make important decisions regarding various aspects of the product in order to prepare for its launch and subsequent success. These decisions are crucial in shaping the product's identity, market positioning, and feasibility.

The correct answer describes the distinction between Sequential Approach and Simultaneous Approach in the project management context, emphasizing how tasks are approached and completed in each method. The three incorrect answers provide alternative interpretations that do not align with the actual definitions.

Test marketing involves the limited introduction of a product to gather feedback before a full launch, which can be a costly and time-consuming process. The incorrect answers do not accurately define test marketing.

Test marketing is a method of testing a product's performance in the market before full-scale launch. Alternatives to test marketing include supermarket scanning, simulated market testing, and online test marketing. Each of these methods provides valuable insights into consumer behavior and preferences, helping companies make informed decisions before investing heavily in a new product or service.

Commercialization is the stage where the decision is made to launch the product into the market after all the necessary preparations such as ordering materials, production, inventory buildup, distribution shipments, sales force training, trade announcements, and customer advertising.

In order to successfully develop and launch a new product, it is crucial to focus on listening to customers, having strong leadership, producing a high-quality product, being committed to the development process, having a clear vision of the future market, implementing a project-based team approach, and ensuring that every aspect of the product is right. Ignoring customer feedback, adopting a dictatorial leadership style, and rushing the product development process are not conducive to successful NPD.

New products can fail for various reasons such as lack of differentiation, misjudging customer preferences, and underestimating market demand. Competitors and market fit also play a significant role in a product's success or failure.

The Product Life Cycle consists of four stages: Introductory, Growth, Maturity, and Decline. These stages represent the different phases a product goes through from its launch to eventual decline in the market.

The introductory stage of PLC is characterized by high failure rates, little to no competition, frequent product modification, limited distribution, high marketing costs, negative profits, slow sales increase, and promotion focus on awareness and information. These factors differentiate it from options like low failure rates and high competition, a static product with no modifications, and an extensive distribution network with easy access.

The Growth Stage of a product life cycle is characterized by the mentioned factors such as increasing rate of sales, entrance of competitors, market consolidation, healthy profits, aggressive advertising, and wider distribution. The incorrect answers provided do not align with the typical characteristics of the Growth Stage.

The Maturity Stage of a product life cycle is characterized by several key factors such as saturation in the market, price wars, a wide range of product offerings, and heavy promotions to maintain market share. During this stage, companies often face challenges such as dealing with competition, decline in profits, and the emergence of niche marketers.

The Decline Stage in a product life cycle refers to a long-term decrease in sales, large amounts of unsold inventory, the need to cut nonessential marketing expenses, and potentially deciding to eliminate the product from the company's offerings.

Shortening the PLC involves understanding the product life cycle stages and taking strategic actions to either speed up or slow down the progression. The correct answer highlights the importance of staying adaptable to market trends and consumer preferences to effectively manage a product's life cycle.

In the Product Life Cycle, effective marketing strategies involve carefully analyzing the stage of the product, adjusting the marketing mix accordingly, and considering factors such as product maturity and competition.