Question 91.In choosing a method of test marketing, Best Bargain finds that superfast product

91.In choosing a method of test marketing, Best Bargain finds that superfast product
development can be riskier and more costly than the other methods. It often creates
increased organizational tension and confusion. Best Bargain must be thinking about the
simultaneous team-based approach.
92. The highest profits earned by a consumer product usually occur during the maturity stage.
(False; Using the PLC concept to develop marketing strategy can be difficult because strategy is
both a cause and a result of the product’s life cycle.
93. The maturity stage of the PLC is characterized by a slowdown in sales growth.
94. During the introduction stage, a company that acts as a market planner must choose a
launch strategy that is consistent with the intended product and company image.
100. Why do profits rise during the growth stage of the PLC? It is because promotion costs
are spread over a large volume and unit manufacturing costs fall.
101. Although products that remain in the maturity stage of the PLC seem unchanged, the most
successful ones actually evolve to meet changing consumer needs.
102. When sales of a product falter during the PLC, a company can take several approaches.
The more common ones are to modify the marketing mix, modify the product, modify the
market, or add new features that expand the product’s safety, usefulness, or convenience.
103. Sales for the time-tried household cleansers made by Brite and New, Inc., have been
declining for some time. If these products are typical, sales are declining because of
technological advances, shifts in consumer tastes, or lack of raw materials from foreign
suppliers.
239
104. Companies need to pay more attention to their aging products. Management must regularly
review sales, market shares, costs, and profit trends. The next step is to decide whether to
harvest or drop these declining products.
105. When a company decides to harvest a product in the decline stage, it will reduce costs and
hope that sales hold up to increase the profits in the short run.
Essay
106. Given the rapid changes in consumer tastes, technology, and competition, companies must
develop a steady stream of new products and services. Briefly explain the common ways of
accomplishing this.
107. Explain why so many new products fail and provide some ideas for a company to improve its
odds of new product success.
.
108. Briefly describe the steps in the new-product development process.
109. Provide the major sources of external new product ideas and explain why these sources
offer advantages over internal sources.
.
240
110. What are the two advantages of an idea management system for developing new products?
Provide five ideas for a company to use to accomplish a successful system.
111. Define commercialization. During the product launch stage, the company must first decide
on two important issues. Explain.
112. Each product will have a life cycle, although its exact shape and length is not known in
advance. Briefly explain each step in the PLC.
113. Your assignment is to prepare a presentation about the application of the PLC to as many of
your company’s operations as possible. What would you include?
114. Distinguish among a product idea, a product concept, and a product image.
115. Explain concept testing.
APPLICATION CONTENT: Multiple-Choice Questions
241
116. Your firm added three new products earlier this year to add variety for customers. Two of
them failed to reach even minimal sales. What could be a possible cause?
a. The market size may have been overestimated.
b. The actual products may not have been designed as well as they should have been.
c. The products were not positioned correctly in the market.
d. All of the above.
e. None of the above.
117. Your firm added three new products earlier this year to add variety for customers. Two of
them failed to reach even minimal sales. What could possibly not be a cause?
a. The products were priced too high.
b. The products were advertised incorrectly.
c. Competitors fought back harder than expected.
d. Research was too extensive.
e. B and D
118. Once management of The Grecian Urn has decided on its product concept and marketing
strategy, they can evaluate the business attractiveness of the proposal called _____.
a. business feasibility
b. feasibility study
c. business analysis
d. product acceptance
e. concept testing
119. Wainwright Industries has built a new prototype riding lawnmower especially for women.
Joe Wainwright and his staff have incorporated the functional features and must now
convey the _____.
a. image
b. advertising
c. safety features
d. intended psychological characteristics
e. visual characteristics
242
120. Mattel’s Barbie is an example of an age-defying product. Barbie, both timeless and trendy, is
in the _____ stage of the PLC.
a. introduction
b. growth
c. maturity
d. decline
e. adoption

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.