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