Question 61. Sherri’s Exclusives wants to apply the PLC to the following list. Which one will not work?

61. Sherri’s Exclusives wants to apply the PLC to the following list. Which one will not work?
a. Styles.
b. Fashions.
c. Fads.
d. Formal wear.
e. Trends.
62. Sherri’s Exclusives sells currently accepted and popular clothing items in given fields. What
does she stock in her store?
a. Styles.
b. Fashions.
c. Fads.
d. Exclusives.
e. Services.
63. The PLC concept can be applied by marketers as a useful framework for describing how
_____.
a. to forecast product performance
b. to develop marketing strategies
c. products and markets work
d. the PLC curve will shape up
e. trends fade away
64. Using the PLC concept to develop marketing strategy can be difficult because strategy is
both a _____ and a(n) _____ of the product’s life cycle.
a. mirror image; cause
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b. cause; result
c. result; mirror image
d. beginning; end
e. purpose; effect
65. During the introduction stage in the PLC a firm will incur high costs in all of the following
areas except which one?.
a. Distribution.
b. Promotion.
c. Product development.
d. Reminder advertising.
e. Informative advertising.
66. Why do profits increase during the growth stage of the PLC?
a. Promotion costs are spread over a large volume.
b. Unit manufacturing costs fall.
c. Competition has not yet taken sales away.
d. All of the above.
e. None of the above.
67. Which stage in the PLC normally lasts longer and poses strong challenges to the marketing
managers?
a. Introduction.
b. Growth.
c. Maturity.
d. Decline.
e. Phase-in
68. What actually leads to greater competition in the maturity stage of the PLC?
a. Overcapacity.
b. Many competitors.
c. Poor management.
d. Inadequate promotion.
e. A lack of money.
69. At some point between maturity and decline, a company or business can attempt to raise
the PLC curve or give it new life by using which one of the following techniques?
a. Find new global markets.
b. Increase the advertising budget.
c. Increase free samples as incentives to buy.
d. Find new uses and new users.
e. None of the above.
70. At some point between maturity and decline, a company or store may lift the PLC by doing
the which of the following?
a. Expand the product’s usefulness.
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b. Expand the product’s safety.
c. Expand the product’s convenience.
d. Enhance the product’s packaging.
e. All of the above.
71. When a firm attempts to increase sales during the maturity stage of the PLC by changing
one or more marketing mix elements, it is _____.
a. modifying the marketing mix
b. changing promotion
c. improving advertising
d. increasing promotion budget
e. altering publicity
72. Sales decline in the decline stage of the PLC because of technological advances, increased
competition, and _____.
a. shifts in the economy
b. shifts in unemployment
c. shifts in consumer tastes and preferences
d. foreign imports
e. none of the above
73. In general, which choice would a company make toward declining products?
a. Maintain or harvest them.
b. Harvest or drop them.
c. Maintain, harvest, or drop them.
d. Maintain or drop them.
e. None of the above.
74. All of the following are stages in the PLC, except which one?
a. Introduction.
b. Adoption.
c. Growth.
d. Decline.
e. Maturity.
True/False
75. Given the rapid changes in consumer tastes, technology, and competition, companies must
develop a steady stream of new products and services.
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76. Common reasons why so many new products fail in the marketplace include the market
size may have been overestimated, the product was not well designed, the product was
incorrectly positioned in the market priced too low, or the product was advertised poorly.
77. New product development begins with a systematic search for new product ideas through
idea generation.
78.Malibu Beach Parties finds that the tastes and preferences of its customers change
more rapidly than in the past. The manager is constantly looking for external ideas from
customers, suppliers, competition, and the sales force.
79. Companies rarely ever give their customers the tools and resources to design their own
products.
80. To avoid too few new product ideas and the failure of many good ideas, top management
should install an idea management system. This system directs the flow of new ideas to
each department where they can be collected, reviewed, and evaluated.
81. Concept testing works best with people who are familiar with the new idea and the new
product’s purpose. This generally includes top management, the sales force, and research
and development.
82.GreenTree Lawn and Garden Products is engaged in marketing strategy development.
Management must first create a statement outlining the product’s planned price,
distribution, and marketing budget for the first year.
(False;
83.GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and
profit projections for some new products to find out whether they satisfy the company’s
objectives. This activity is called business product development.
(.
84. To test the product concept of a new idea, a firm will develop a prototype that will satisfy
and excite consumers and be produced quickly at budgeted costs.
85. The stage at which new product and marketing programs are introduced into more realistic
market settings is called concept test marketing.
86. When a company determines that test marketing costs will become high, it is generally
better to reconsider the proposal than make the mistake of spending too much.
87. A company launching a new product into the market must first decide on where to launch
the product.
88. A firm can obtain new products in two ways: acquisition or new-product development.
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89. JumBo Games is launching a new set of game toys in the commercialization stage. The first
decision to make is introduction timing and the second is where to launch the new product.
90. Sequential product development has the advantage of not only being a team-oriented
approach, but it is faster in bringing products to market.

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