1. TOP 10 Learning Questions for Chapter 20: Introducing New Market Offerings Rosalia R. Reyes September 23, 2010 Marketing Management Class Prof. Remigio Joseph De Ungria leareyes.blogspot.com leareyes.blogspot.com leareyes.blogspot.com

2. 1. The following are categories of new-product except _____________. New-to-the-world New product lines Additions Improvements Technology-driven Repositionings Cost reductions 2 leareyes.blogspot.com

3. Categories of new-product New-to-the-world Improvements New product lines Repositionings Additions Cost reductions leareyes.blogspot.com 3

5. Revisions of existing products.

6. Brand extension of existing products.

7. Continuous innovation.4 New Product Categories. leareyes.blogspot.com

8. 1. The following are categories of new-product except __________. New-to-the-world New-product line Additions Improvements Technology-driven Repositionings Cost reductions 5 leareyes.blogspot.com

9. 2. The new-product development start with the search for __________. 6 Need Want Idea Improvement Addition leareyes.blogspot.com

11. 7 WAYS TO DRAW IDEAS FROM CUSTOMERS 8 leareyes.blogspot.com

12. 2. The new-product development start with the search for _________. 9 Need Want Idea Improvement Addition leareyes.blogspot.com

13. 3. One of the following is not a stage in new- product development process? Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Adoption process Product development Market testing Commercialization 10 leareyes.blogspot.com

14. New Product Development Decision Process 11 Idea Generation Business Analysis Product Development Idea Screening Marketing Testing Concept Development and Testing leareyes.blogspot.com Commercialization

16. Idea Screening –is the product idea compatible with company objectives, strategies, and resources?

17. Conceptdevelopment and testing –can we find a good concept consumers say they would try?

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

19. Business analysis– will this product meet our profit goal?

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

21. Market testing – have product sales meet expectations?

22. Commercialization – are product sales meeting expectations? leareyes.blogspot.com

23. 3. One of the following is not a stage in new –product development stage? Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Adoption process Product development Market testing Commercialization 13 leareyes.blogspot.com

24. 4. _______ is individual’s decision to become a regular user of a product? Awareness Interest Evaluation Trial Adoption 14 leareyes.blogspot.com

25. The Consumer-Adoption Process Adoption – is an individual’s decision to become a regular user of a product. The consumer-adoption process is followed by the consumer-loyalty process. 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. 15 leareyes.blogspot.com

26. 16 Stages in the Consumer-Adoption Process Awareness Interest Evaluation Adoption Trial leareyes.blogspot.com

28. Characteristics of the InnovationRelative Advantage Compatibility Complexity Divisibility Communicability leareyes.blogspot.com

29. 4. _______ is individual’s decision to become a regular user of a product? Awareness Interest Evaluation Trial Adoption 18 leareyes.blogspot.com

30. 5. In commercialization of a new product, the firm time its entry to coincide with the competitor is called ____________ ? First Entry Parallel Entry Late Entry 19 leareyes.blogspot.com

31. 20 Timing Entry First Entry The first firm entering a market usually enjoy the “first movers advantages”. The firm might time its entry to coincide with the competitor’s entry. The firm might delay its launch until after the competitor has entered. Parallel Entry Late Entry leareyes.blogspot.com

33. WHERE (Geographic Strategy)

34. TO WHOM (Target-Market Prospects)

35. HOW (Introductory Market Strategy leareyes.blogspot.com

36. 5. In commercialization of a new product, the firm time its entry to coincide with the competitor entry is called _______? First Entry Parallel Entry Late Entry 22 leareyes.blogspot.com

37. 6. The following are true about decisions to be made in market testing except _________: a. Decide on how many cities to test? b. Decide on which cities to test? c. Decide on length of test? d. Decide on what information to collect? e. Decide on whom to test? f. Decide on what action to take? 23 leareyes.blogspot.com

38. 24 Decisions to be made in Market Testing How many test cities? Length of test? Which cities? What information to collect? What action to take? leareyes.blogspot.com

40. Which cities – develop a selection criteria.

42. 6. The following are true about decisions to be made in market testing except _________: a. Decide on how many cities to test? b. Decide on which cities to test? c. Decide on length of test? d. Decide on what information to collect? e. Decide on whom to test? f. Decide on what action to take? 26 leareyes.blogspot.com

44. Which cities – develop a selection criteria.

46. 7. One of the following is not a stage in the consumer adoption process ? a. Awareness b. Interest c. Evaluation d. Trial e. Testing f. Adoption 28 leareyes.blogspot.com

47. Adoption Process Stages 29 leareyes.blogspot.com

49. Interest – stimulated to seek information about innovation,

50. Evaluation - considers whether to try the

51. innovation,

52. Trial – tries the innovation,

53. Adoption – decides to make full and regular use of the information,30 Consumer-adoption process – mental steps through which an individual passes from first hearing about an innovation final adoption. leareyes.blogspot.com

54. a. Awareness b. Interest c. Evaluation d. Trial e. Testing f. Adoption 31 7. One of the following is not a stage in the consumer adoption process ? leareyes.blogspot.com

55. 8. Which of the following is true about concept development? a. A product idea is a possible product the company might offer to the market. b. Product concept is an elaborate version of the idea expressed in consumer terms. c. Each concept represents a category concept that defines the product’s competition. d. The product concept becomes a brand concept. e. Concept testing means representing the product concept, symbolically or physically, to target consumers and getting their reactions. f. All of the above 32 leareyes.blogspot.com

57. Product Concept– elaborated version of the idea expressed in consumer terms,

58. Each concept represents a category concept

59. Category Concept - defines the product’s competition,

60. Product Concept– becomes a brand concept,

61. Concept testing – means presenting the product concept. leareyes.blogspot.com

63. Hot cereal

64. Instant Breakfat Inexpensive BREAKFAST MARKET leareyes.blogspot.com

66. Need level – do you see this product filling a need for you?

67. Gap level – do other products currently meet this need and satisfy you?

68. Perceived value – is the price reasonable in relationship to value?

69. Purchase intention – would you buy the product?

70. User targets, purchase occasions, purchasing frequency – who would use the product,when and how often? 35 leareyes.blogspot.com

71. 8. Which of the following is true about concept development? a. A product idea is a possible product the company might offer to market b. Product concept is an elaborated version of the idea expressed in consumer terms. c. Each concept represents a category concept that defines the product’s competition. d. The product concept becomes a brand concept. e. Concept testing means representing the product concept, symbolically or physically to target consumers and getting their reactions. f. All of the above 36 leareyes.blogspot.com

72. 9. Which is not a cause of new-product failure? a. Market/marketing failure b. Financial failure c. Timing failure d. Market size failure e. Technical failure f. Organizational failure g. Environmental failure 37 leareyes.blogspot.com

73. Causes of New-Product Failure 38 Market/Marketing failure Technical failure Financial failure Organizational failure Timing failure Environmental failure leareyes.blogspot.com

75. Financial failure – low return on investment.

76. Timing failure – late in the market or “too” early.

77. Technical failure – product did not work

78. bad design.

79. Organizational failure – poor fit with the organizational culture

80. lack of organizational support

81. Environmental failure –government regulations macroeconomic factors 39 leareyes.blogspot.com

82. 9. Which is not a cause of new-product failure? a. Market/marketing failure b. Financial failure c. Timing failure d. Market size failure e. Technical failure f. Organizational failure g. Environmental failure 40 leareyes.blogspot.com

83. 10. Which statement is not true in Marketing Strategy Development? a. Marketing strategy is a three-part plan for introducing new-product in the market. b. Marketing strategy does not consider the target market’s size, structure, and behavior. c. Marketing strategy describes the long-run sales and profit goals. d. Marketing strategy should outline the planned price, distribution strategy, and marketing budget for the first year. e. None of the above 41 leareyes.blogspot.com

84. 42 THREE-PART PLAN MARKETING STRATEGY DEVELOPMENT First Part 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. Second Part Third Part leareyes.blogspot.com leareyes.blogspot.com

85. MARKETING STRATEGY DEVELOPMENT! Marketing Strategy is a three-part plan for introducing new-product in the market. 1. After the company has segmented the market, chosen its target customers and identified their needs, next is to determine its desired marketing position. 2. After the concept test, comes the introduction of the new product into the market with the 3 part marketing plan. 43 leareyes.blogspot.com

86. a. Marketing strategy is a three-part plan for introducing new-product in the market. b. Marketing strategy does not consider the target market’s size, structure, and behavior. c. Marketing strategy describes the long-run sales and profit goals. d. Marketing strategy should outline the planned price, distribution strategy, and marketing budget for the first year. e. None of the above 44 10. Which statement is not true in Marketing Strategy Development? leareyes.blogspot.com

87. TOP 10 Learning Questions for Chapter 20: Introducing New Market Offerings Rosalia R. Reyes September 23, 2010 Marketing Management Class Prof. Remigio Joseph De Ungria