Which of the following best describes Innovation?

  

The thinking of novel ideas

  The process of conception, development and commercialisation

  The successful development of a new product

  None of the above

  The management process of invention

Most major innovations are the result of: 

  Maverick scientists who stumble by accident on major new discoveries

  Extended efforts by experts in that field

  All of the above

  Serendipity

  Extensive market research

The technology push model of innovation is characterised by: 

  A marketplace that is a passive receptacle for the fruits of R&D

  Extensive consumer research

  None of the above

  A marketplace that communicates its needs to producers

  Extensive market research

The essential nature of the market pull model of innovation is: 

  A marketplace that can communicate its needs to producers

  A large marketplace

  A science base that has effective links with industry

  All of the above

  A powerful research & development (R&D) activity;

The interactive model of innovation recognises that: 

  Innovations occur as the result of the interaction of the marketplace, the science base and the organisation's capabilities

  Innovations require a significant input from market research

  None of the above

  Innovations occur as the result of the interaction of the marketplace and the science base

  Innovations require serendipity

Although flawed and overly simplistic the technology push linear model of innovation can be applied to:

  

The sports goods industry

  None of the above

  The food industry

  The pharmaceutical industry

  The fmcg industries

The innovation network framework emphasises:

  

The role of marketing

  Internal and external interactions

  All of the above

  The role of science and technology

Industrial innovation includes: 

  Process innovations

  All of the above

  Organisational innovations

  Radical innovations

  Product innovations

The popular view of technological innovation is that of the lone professor stumbling by accident on major new discoveries. This has:

  

None of the above

  Helped to stimulate interest in science within schools

  Helped scientists inform people about science and technology

  Caused considerable harm to the understanding of science and technology

  Helped more people to understand the process of scientific discoveries

Innovation management may be described as a process and involves:

  

A creative effort that if successful results in the introduction of novelty

  All of the above

  A response to either a need or an opportunity that is context dependent

  The need for further changes

  None of the above

1. Innovations provide

A.   ?    the primary means for differentiating your product from

your competitors’

B.   ?    higher profit margins

C.   ?    potential barriers to entry

D.   ?    all of the above

2. Digital services benefit from innovation because

A.   ?    There is no shelf space to pay for

B.   ?    no manufacturing costs

C.   ?    low distribution fees

D.   ?    all of the above

3. The most profitable 'Long Tail' companies are the ones that

A.   ?    offer the largest choice

B.   ?    scale on database size, not factory output

C.   ?    offer opportunities for transforming physical distribution

into lower cost and scalable digital distribution

D.   ?    all of the above

4. Successful innovation happens in four realms

A.   ?    new products, new technologies, new markets, new ways

of matching firm assets and competences

B.   ?    commercialization, globalization, capitalization,

commoditization

C.   ?    Eeny, Meeny, Miney, Moe

D.   ?    none of the above

5. The core competences a firm need to acquire

A.   ?    depend on the maturity of the underlying technology

B.   ?    depend on their competitors

C.   ?    should be purchased

D.   ?    none of the above

6. In the era of ferment

A.   ?    well developed scientifi theories provide the raw material

for emerging technologies

B.   ?    technology and standards are fluid, and do not

necessarily perform well

C.   ?    standards have been agreed upon, risk may be lowered

sufficiently to warrant innovation

D.   ?    all of the above

7. Profitability of an innovation is determined by

A.   ?    the nature of the innovation

B.   ?    barriers to entry in imitating it

C.   ?    understanding complements required to complete the

innovation

D.   ?    all of the above

8. The majority of innovations

A.   ?    are 'incremental' in that they make no demands for

significant change in firm competences or markets

B.   ?    are ‘radical’ in requiring a complete reengineering of

their competences

C.   ?    are ‘progressive’ in requiring management of market

transitions

D.   ?    none of the above

9. The early automotive industry parallels other more recent

technologies in the following way:

A.   ?    the automotive industry developed in a "knowledge

cluster"

B.   ?    the U.S. patent system was used to stifle creativity

C.   ?    the most successful product did not possess better

technology

D.   ?    all fo the above

10. Ford succeeded because of

A.   ?    good marketing

B.   ?    good technology

C.   ?    sound production

D.   ?    all of the above

11. The benefits of Ford's technology acrued mainly to

A.   ?    customers

B.   ?    workers

C.   ?    management

D.   ?    investors

What are the two ways that a company can obtain new products?

  

internal development and merger

  line extension and brand management

  market mix modification and research and development

  service development and product extension

  new-product development and acquisition

Which of the following is not a potential cause of the failure of a new product?

  

higher than anticipated costs of product development

  a poorly designed product

  an underestimated market size

  an incorrectly positioned product

  ineffective advertising

The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers.

  

product, marketing mix, and marketing strategy; functional features

  competitors, distributors, and employees; new styles

  customers, competitors, and markets; superior value

  customers, brands, products; product images

  product life cycle, legal responsibilities, and social responsibilities; innovations

Executives, manufacturing employees, and salespeople are all examples of ________.

  

new-product committee members

  core members of innovation management systems

  internal sources for new-product ideas

  external sources for new-product ideas

  research and development team members

Which of the following is perhaps the most important external source of new-product ideas?

  

distributors and suppliers

  trade magazines, shows, and seminars

  customers

  engineers

  competitors

Your firm wants to use external sources for new product ideas. After consulting with a friend you learn that all of the following are common external sources except ________.

  

competitors

  trade shows and magazines

  the firm's executives

  suppliers

  customers

GrayBerry Gifts has just brainstormed a large number of ideas for adding new products and services after visiting several buying fairs. The owners will begin the first idea-reducing stage, called ________ , to arrive at a realistic number to adopt.

  

idea screening

  idea generation

  concept development

  product concept

  idea dissemination

  

product image

  product proposal

  product concept

  product idea

  product movement

An attractive idea must be developed into a ________.  

  product image

  product concept

  product idea

  product strategy

  test market

In the concept testing stage of new-product development, a product concept in ________ form is presented to groups of target consumers.

  

physical or symbolic

  final

  prototype

  commercial

  market-tested

After concept testing, a firm would engage in which stage in developing and marketing a new product?

  

test marketing

  idea screening

  business analysis

  product development

  marketing strategy development

The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year.

  

advertising

  marketing budget

  promotion

  target market

  positioning

During which stage of new-product development is management most likely to estimate minimum and maximum sales to assess the range of risk in launching a new product?

  

test marketing

  product development

  concept testing

  business analysis

  marketing strategy development

  

business analysis

  idea generation

  concept development and testing

  product development

  marketing mix

Under what circumstances might it be wise for a company to do little or no test marketing?

  

When the costs of developing and introducing the product are low.

  When the product has no substitutes and is new in its category.

  When management is not sure of the product.

  When management is not sure of the marketing program.

  When a new product requires a major investment.

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________.

  

how to compete in the market

  how to develop a market strategy

  which market to compete in

  whether to launch the new product

  how long to compete in the market

Which of the following costs is most likely associated with the commercialization stage of new-product development?

  

identifying target markets

  determining the product's planned price, distribution, and marketing budget

  developing a prototype of the product

  building or renting a manufacturing facility

  paying groups of target consumers for product feedback

Which of the following is necessary for successful new-product development?

  

a team-based, innovation-management approach

  an innovation management system and sequential product development

  a customer-centered, team-based, systematic approach

  a market pioneer mindset and a holistic approach

  a holistic and sequential product development approach

________ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.

  

Product life-cycle analysis

  Team-based product development

  Simultaneous product development

  Micromarketing

  Sequential product development

  

cross-functional teams

  departmentalization

  a step-by-step process

  team efforts

  the help of a consultant

Which of the following is a disadvantage of a team-based approach to new-product development?

  

Levels of risk can be more easily controlled.

  Organizational confusion and tension can be a part of the process.

  The process does not work with the shorter life cycles of many of today's products.

  The development effort is not as effective because of team members' lack of expertise.

  It takes longer to get the right products to market.

The search for new-product ideas should be ________ rather than haphazard.

  

intermittent

  strategically planned

  segmented

  seldom

  systematic

Increasing profits will most likely occur at which stage of the PLC?

  

decline

  maturity

  product development

  growth

  introduction

Which of the following cannot be described by the PLC concept?  

  product class

  product form

  brand

  product image

  styles

The PLC concept can be applied by marketers as a useful framework for describing how ________.

  

product ideas are developed

  products and markets work

  to forecast product performance

  concept testing is conducted

  to develop marketing strategies

In the ________ stage, the firm faces a trade-off between high market share and high current profit.

  

maturity

  introduction

  decline

  commercialization

  growth

In which stage of the PLC will promotional expenditures be high in an attempt to react to increasing competition?

  

introduction

  product development

  growth

  decline

  maturity

Which stage in the PLC normally lasts longer and poses strong challenges to the marketing managers?

  

phase-in

  decline

  maturity

  growth

  introduction

Most products in the marketplace are in the ________ stage of the product life cycle.

  

growth

  development

  introduction

  decline

  maturity

Sales decline in the decline stage of the PLC because of technological advances, increased competition, and ________.

  

shifts in the economy

  shifts in consumer tastes and preferences

  marketing mix modifications

  new market pioneers

  shifts in unemployment

A manufacturer with a product in the decline stage of the product life cycle might decide to ________ if it has reason to hope that competitors will leave the industry.

  

maintain the product without change

  search for replacements

  drop the product

  harvest the product

  delay planning

The advantages of standardizing an international product include all of the following except ________.

  

the development of a consistent image

  the adaptation of products to different markets

  decreased manufacturing costs

  lower marketing costs

  lower product design costs

Schmidt Steel Corporation lacks the confidence, capital, and capacity to launch its new steel product into full national or international distribution. Even though test market results look promising, what will be management's next step?

  

develop a planned market rollout over time

  seek the help of a nationally known consultant

  develop a prototype

  retest the product in additional markets

  secure a loan to provide confidence, capital, and capacity