MKTG chapter 10

15 June 2024
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The categories of continuous innovation, dynamically continuous innovation, and discontinuous innovation are based on levels of consumer____
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learning
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What must the consumer learn about when a new product is a discontinuous innovation?
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-proper use of the product -previously un-encountered benefits
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A_______ is a predevelopment statement that identifies a target market, customer needs, and what the product will be or do
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protocol
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Avoiding "groupthink" in meetings and learning takeaway lessons from past experiences can help an organization avoid
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new-product failures
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For which of the following will consumer education be most important, perhaps requiring personal selling to gain product trial?
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Discontinuous innovation
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Which of the following should be included in a protocol for new product development?
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1) What the product will be and do 2) Specific customer needs, wants, and preferences, A well-defined target market Not: - What competitors are planning to introduce
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Some reasons for new-product failures
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insignificant points of difference, incomplete protocols, and bad timing
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Products may be considered new when they differ from existing products, but this encourages the proliferation of extra features in what is known as
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Feature bloat
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When a toothpaste is improved by adding a whitening ingredient, this would be considered a
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Continuous innovation
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The FTC advises that the term "new" be limited to use with a product up to ____ after it enters regular distribution
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Six months
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Product line extension--> risk
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Threat of cannibalization
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Significant technology jump --> risk
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Moderate risk
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Radical invention--> risk
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Revolutionary new products
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Less than ___ of new consumer package goods exceed first-year sales for $50 million- the benchmark for a successful launch
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3%
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Developing strategic relationships with outside individuals and organizations in order to create new-product ideas is known as ____ innovation
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Open. Ex. apple mouse
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Which of the following would be considered good methods for generating ideas for new products?
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-Using one's own R laboratory -Conducting consumer research -Asking suppliers for ideas Not: - infiltrating other firms and institutions
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The new-product process stage of _____ involves positioning and launching a new product in full-scale production and sales
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Commercialization
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Burger King's new French fries failed during ____ because they proved too complicated to get right day after day in all of their restaurants, except under ideal conditions
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Commercialization
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Commercialization of grocery products can be very expensive for manufacturers because of which of the following?
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-Slotting fees and Failure fees
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Which of the following is the primary purpose of using regional rollouts in the commercialization stage of the new-product process?
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To gradually build up production levels and marketing activities
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Parallel development and fast prototyping are helpful in ____, a critical factor in the success of some new products
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Improving time to market
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Although there are numerous stages in the new-product process, firms develop a strategy, then start ______ and continue the process through the final step of ______
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idea generation; commercialization
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In the _______ stage of the new-product process an organization defines the role of a new product in terms of the firm's overall objectives
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new-product strategy development
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The use of open innovation can be useful in the ________ stage of the new-product process because it helps organizations find and execute product concepts externally and overcome the associated not-invented-here barriers
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Idea generation
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General Mills got the idea for Nature Valley granola bars when a marketing manager saw coworkers bringing granola to work in plastic bags, illustrating the importance of using ________ in the new-product process
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employees
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Because their ideas of what they want may be limited or skewed, ______ should be used in the new-development process but with a focus on what the new product will actually do for them
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ustomers and suppliers
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An organizations ______ laboratories are a good way to develop ideas for new products
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Research & Development
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Which of the following is the most appropriate use of competitors in the development of new-product ideas
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Assessing the strengths and weaknesses of competitors products
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Organizations may look into universities, inventors, or smaller nontraditional firms as sources of_________ innovation in the development of new product ideas
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Open
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The new-product process stage of screening and evaluation involves
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determining which ideas should be eliminated from further effort
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In the screening and evaluation stage of the new-product process, a firm's employees evaluate the technical _________ of a proposed idea
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feasibility
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An organization may consider principles of customer experience management as it examines its employee commitment and skills in the internal approach of the ________ stage of the new-product process
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Screening and evaluation
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During concept testing, new-product ideas are presented to ______ to obtain their reactions
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potential consumers
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Concept tests in the screening and evaluation stage of the new-product process are most useful when
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-used for minor modifications of existing products
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_____ helps an organization determine early in the new-productprocess how the customer may -perceive the product- as well as who would use it and how, before the additional investment is made
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Concept testing
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The new-product process stage of business analysis involves which two of the following
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1) making financial projections for a new product 2) Specifying the marketing strategy needed to bring a new product to market
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A full-scale operating model of a new product is known as a
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prototype
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Organizations should consider whether a new product will require new machinery to produce, has the potential to cannibalize existing products, or if it will require new patents during which stage of the new-product process?
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Business analysis
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The new-product process stage of development (stage 5 ) involves which two of the following
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-ensuring the product meets the standards established by the protocol - manufacturing the product
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Safety tests, like driving tests of Google's driverless car, are important to conduct in the ______ stage of the new-product process
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development
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________ marketing involves offering a product for sale on a limited basis in a defined area
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Target
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Standard test market
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A company develops a product and then attempts to sell it through normal distribution channels in a number of select cities
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Controlled test market
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A company develops a product and contracts its entire test program to an outside service that can guarantee a specified percentage of the product's potential distribution volume
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Simulated test market
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A company develops a product and runs tests, often in a shopping mall, to get opinions on the product concept, attributes, and usage from qualified participants