TOP 10 Learning Questions for

Chapter 20: Introducing New Market offerings

KimDec/23/2010

1. Which does not belong to the Categories of New Products?

A. New-to-the-worldB. New product linesC. New partnersD. ImprovementsE. Cost reductions

Question

Categories of New Products

New-to-the-world

Cost reductions

New product lines

Additions

Improvements

Repositionings

Concept

4

Categories of New Products

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Explanation of Concept

There are 6 factors of the Categories of New Products Which are New-to-the-world, New product lines, Additions, Improvements, Repositionings and Cost reductions.

New Partners is NOT involved to the Categories of New Products.

1. Which does not belong to the Categories of New Products?

A. New-to-the-worldB. New product linesC. New partnersD. ImprovementsE. Cost reductions

Answer

2. Which does not cause the Market/Marketing failure?

A. Small size of the potential marketB. No clear product differentiationC. Poor positioningD. Misunderstanding of customer needsE. Late in the market

Question

Causes of New-Product failure

Market/marketing failure Financial failure Timing failure Technical failure Organizational failure Environmental failure

Concept

The factors of Market/marketing failure

A to D are the reason of Market/marketing failure.

Late in the market is the reason of timing failure not Market/marketing failure.

Reference: Text book P.611

Explanation of Concept

2. Which does not cause the Market/Marketing failure?

A. Small size of the potential marketB. No clear product differentiationC. Poor positioningD. Misunderstanding of customer needsE. Late in the market

Answer

3. One of the following is not a stage in new- product development process?

A. Business analysisB. Mass customization C. Product developmentD. Market testingE. Commercialization

Question

New Product Development Decision Process

Commercialization

Business Analysis

Product Development Marketing Testing

Idea Generation

Idea ScreeningConcept Development and Testing

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Concept

• Idea Generation – is the idea worth considering?• Idea Screening – is the product idea compatible

with company objectives, strategies, and resources?

• Concept development and testing – can we find a good concept consumers say they would try?

• Marketing strategy development – can we find a cost-effective, affordable marketing strategy?

• Business analysis – will this product meet our profit goal?

• Product development – have we got a technically and commercially sound product?

• Market testing – have product sales meet expectations?

• Commercialization – are product sales meeting expectations?

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Explanation of Concept

New Product Development Decision Process

3. One of the following is not a stage in new- product development process?

A. Business analysisB. Mass customization C. Product developmentD. Market testingE. Commercialization

Answer

4. What is the individual’s decision to become a regular user of a product?

A. AwarenessB. InterestC. EvaluationD. TestE. Adoption

Question

The Consumer-Adoption Process

Adoption – is an individual’s decision to become a regular user of a product.

After which, the adopters of new products move trough the 5 stages in adoption process.

An innovation is any good, service, or idea that someone perceives as new, no matter

how long its history. leareyes.blogspot.com

Concept

Awareness Interest Evaluation

Trial Adoption

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Stage in the Consumer-Adoption Process

Explanation of Concept

4. What is the individual’s decision to become a regular user of a product?

A. AwarenessB. InterestC. EvaluationD. TestE. Adoption

Answer

5. What is NOT in the Concept Development?

A. Product ideaB. Product conceptC. Category conceptD. Concept testingE. Mapping

AnswerQuestion

Concepts in Concept Development

Concept to Strategy: Attractive ideas must be refined into testable product concepts. A product idea is a possible product the company might offer to the market.

Concept Development: This is a product idea, but consumers don’t buy product ideas; they buy product concepts.

Concept

Concepts in Concept Development

Product idea Product concept Category

concept Brand concept Concept testing

Explanation of Concept

5. What is NOT in the Concept Development?

A. Product ideaB. Product conceptC. Category conceptD. Concept testingE. Mapping

Answer

6. What is the right step of the Consumer-Adoption Process?A. Awareness->Interest->Evaluation-

>trial->AdoptionB. Adoption ->Awareness->Interest-

>Evaluation->trialC. Interest->Evaluation-> Awareness->

trial->AdoptionD. Interest-> Awareness->Evaluation-

>trial->AdoptionE. Awareness->trial->Interest-

>Evaluation-> Adoption

Question

The Consumer-Adoption Process

Adoption: An individual’s decision to become a regular use of a product.

The consumer-adoption process is followed by the consumer-loyalty process, which is the concern of the established producer.

Concept

Adopters of new products move through 5 stages

1. Awareness: The consumer becomes aware of the innovation but lacks information about it

2. Interest: The consumer is stimulated to seek information about the innovation

3. Evaluation: The consumer considers whether to try the innovation

4. Trial: The consumer tries the innovation to improve his or her estimate of its value

5. Adoption : The consumer decides to make full and regular us of the innovation

Explanation of Concept

6. What is the right step of the Consumer-Adoption Process?A. Awareness->Interest->Evaluation-

>trial->AdoptionB. Adoption ->Awareness->Interest-

>Evaluation->trialC. Interest->Evaluation-> Awareness->

trial->AdoptionD. Interest-> Awareness->Evaluation-

>trial->AdoptionE. Awareness->trial->Interest-

>Evaluation-> Adoption

Answer

7. Which statement is Not correct in Marketing Strategy Development?

a. Marketing strategy is a three-part plan for introducing new-product in the market.

b. Marketing strategy should outline the planned price, distribution strategy, and marketing budget for the first year.

c. Marketing strategy describes the long-run sales and profit goals.

d. Marketing strategy does not consider the target market’s size, structure, and behavior.

e. None of the above

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Question

leareyes.blogspot.com leareyes.blogspot.com

Describes the target market’s size, structure, and

behavior.

Outlines the planned price, distribution strategy, and marketing budget for the

first year.

Describes the long-run sales and profits goals and

marketing-mix strategy over time.

First Part

Second Part

Third Part

Concept

THREE-PART PLAN MARKETING STRATEGY DEVELOPMENT

MARKETING STRATEGY DEVELOPMENT!

Marketing Strategy is a three-part plan for introducing new-product in the market.

After the company has segmented the market, chosen its target customers and identified their needs, next is to determine its desired marketing position.

After the concept test, comes the introduction of the new product into the market with the 3 part marketing plan.

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Explanation of Concept

a. Marketing strategy is a three-part plan for introducing new-product in the market.

b. Marketing strategy should outline the planned price, distribution strategy, and marketing budget for the first year.

c. Marketing strategy describes the long-run sales and profit goals.

d. Marketing strategy does not consider the target market’s size, structure, and behavior.

e. None of the above

7. Which statement is not true in Marketing Strategy Development?

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Answer

8. Which is NOT related to the Creativity Techniques?

a. Attribute listingb. Morphological analysisc. New contextsd. Mind mappinge. Flexible relationships

Question

Definition of the Creativity techniques

Creativity techniques are methods that encourage creative actions, whether in the arts or sciences. They focus on a variety of aspects of creativity, including techniques for idea generation and divergent thinking, methods of re-framing problems, changes in the affective environment and so on. They can be used as part of problem solving, artistic expression, or therapy.

Concept

List of the Creativity techniques

Attribute listing: List the attributes of an object

Forced relationships: List several ideas and consider each in relation to each other idea

Morphological analysis: By listing every possible combination, you can generate many new solutions

New contexts: Take familiar processes Mind mapping: Start with a thought

Explanation of Concept

8. Which is NOT related to the Creativity Techniques?

a. Attribute listingb. Morphological analysisc. New contextsd. Mind mappinge. Flexible relationships

Answer

a. Early Adoptersb. Late Adoptersc. Early Majorityd. Late majoritye. Laggards

9. Which is NOT included the Time of Adoption of Innovations?

Question

Factors Influencing the Adoption process

Differences in individual readiness to try new products

The Effect of personal influence Differing rates of adoption Differences in organizations’ readiness

to try new products

Concept

Time of Adoption of Innovations

Innovators Early Adopters Early majority Late majority Laggards

Explanation of Concept

a. Early Adoptersb. Late Adoptersc. Early Majorityd. Late majoritye. Laggards

9. Which is NOT included the Time of Adoption of Innovations?

Answer

10. Which is not related with Commercialization?

a. Whenb. Wherec. To whomd. Howe. Why

Question

Definition of Commercialization

Commercialization is the process or cycle of introducing a new product into the market. The actual launch of a new product is the final stage of new product development, and the one where the most money will have to be spent for advertising, sales promotion, and other marketing efforts.

Concept

The factors of Commercialization

When: In commercializing a new product, market-entry timing is critical.

Where: The company must decide to launch the new product.

To whom: The company must target its initial distribution and promotion to the best prospect groups.

How: The company must develop an action plan for introducing the new product.

Explanation of Concept

10. Which is not related with Commercialization?

a. Whenb. Wherec. To whomd. Howe. Why

Answer

TOP 10 Learning Questions for

Chapter 20: Introducing New Market offerings

KimDec/23/2010