1. Top 10 Learning Questions Chapter 20 Introducing New Market Offerings Marketing Mangement Philip Kotler , Kevin Lane Keller 13th Edition PaoVirata September 2011 Prof. Bong De Ungria pRUNSViRATA www.prunsvirata.blogspot.com

2. 1. Which of the following is part of the Seven Ways to Draw New Ideas from Your Customers ? A. Observe how your customers are using your website B. Ask your customers about their problems with your sales department C. Ask your customers about your competitors D. Use a management advisory board to comment on your customer’s ideas E. Encourage or challenge your customers to change or improve your product www.prunsvirata.blogspot.com

3. Managing the Development Process : IDEASConcept 1 – IDEA GENERATIONSeven Ways to Draw New Ideas From Customers Observe how your customers are using your product Ask your customers about their problems with your products Ask your customers about their dream products Use a customer advisory board to comment on your company’s ideas Use Web sites for new ideas Form a brand community of enthusiasts who discuss your product Encourage or challenge your customers to change or improve your product www.prunsvirata.blogspot.com

4. Encouraging or challenging your customers to improve your product is one of the best source of great ideas since it came directly from the end users itself. Form a brand community of enthusiasts who discuss your product Encourage or challenge your customers to change or improve your product www.prunsvirata.blogspot.com

5. 1. Which of the following is part of the Seven Ways to Draw New Ideas from Your Customers ? A. Observe how your customers are using your website B. Ask your customers about their problems with your sales department C. Ask your customers about your competitors D. Use a management advisory board to comment on your customer’s ideas E. Encourage or challenge your customers to change or improve your product www.prunsvirata.blogspot.com

6. 2. A Go-Error is when a company permits a poor idea to move into _________ and _________. A. Development and commercialization B. Commercialization and development C. Development and conceptualization D. Conceptualization and development E. Development and contractualization www.prunsvirata.blogspot.com

7. Managing the Development Process : IDEASConcept 2 – IDEA SCREENING Drop poor ideas as early as possible 2 Types of Errors in IDEA SCREENING DROP – error : company dismisses a good idea GO – error : company permits a poor idea to move into development and commercialization Absolute product failure – loses money Partial product failure – loses money but covers all variable cost and some fixed costs Relative product failure – yields a profit lower than the company’s target www.prunsvirata.blogspot.com

8. In order for a product to be successful it should pass through intense screening before it moves from development to commercialization. GO – error www.prunsvirata.blogspot.com

9. 2. A Go-Error is when a company permits a poor idea to move into _________ and _________. A. Development and commercialization B. Commercialization and development C. Development and conceptualization D. Conceptualization and development E. Development and contractualization www.prunsvirata.blogspot.com

10. 3. The three questions asked in the concept development testing are the following except for ? A. When will customers use this product ? B. Who will use this product ? C. Why will you sell this product ? D. What primary benefit should this product provide ? E. When will people use this product ? www.prunsvirata.blogspot.com

11. Managing the Development Process : CONCEPT STRATEGYConcept 3 – CONCEPT DEVELOPMENT TESTING 3 Steps in CONCEPT DEVELOPMENT TESTING Concept Development Who will use this product? What primary benefit should this product provide? When will people use this product? Concept Testing - presenting the product concept to target customers and getting their reaction Conjoint Analysis –measures the consumers preference for alternative product concepts www.prunsvirata.blogspot.com

12. These three questions gives the information that will help you focus on what strategies to be implemented for a successful product . Concept Development Who will use this product? What primary benefit should this product provide? When will people use this product? Milk Kids Adults Complete Nutrition Home School Workplace www.prunsvirata.blogspot.com

13. 3. The three questions asked in the concept development testing are the following except for ? A. When will customers use this product ? B. Who will use this product ? C. Why will you sell this product ? D. What primary benefit should this product provide ? E. When will people use this product ? www.prunsvirata.blogspot.com

14. 4. In the concept strategy which of the following is part of the 3 part strategy plan? A. Product B. People C. Price D. Promotion E. Packaging www.prunsvirata.blogspot.com

15. Managing the Development Process : CONCEPT STRATEGYConcept 4 – MARKETING STRATEGY DEVELOPMENT 3 Part Strategy Plan Market Size, Structure, Behavior Price, Distribution Strategy, Marketing Budget Profit goals, Marketing Strategy Mix www.prunsvirata.blogspot.com

16. Price is one of the factors that will help you position your products in the market. Price, Distribution Strategy, Marketing Budget www.prunsvirata.blogspot.com

17. 4. In the concept strategy which of the following is part of the 3 part strategy plan? A. Product B. People C. Price D. Promotion E. Packaging www.prunsvirata.blogspot.com

18. 5. The concept of _________ is a way to determine whether they satisfy the company’s objectives. A. Comsumer Analysis B. Business Analysis C. Competitor Analysis D. Customer Analysis E. Marketing Analysis www.prunsvirata.blogspot.com

19. Managing the Development Process : CONCEPT STRATEGYConcept 5 – BUSINESS ANALYSIS Management needs to prepare sales, cost, and profit projections to determine whether they satisfy company objectives through: Estimating Total Sales Estimating Costs and Profits www.prunsvirata.blogspot.com

20. Through business analysis will be able to measure the success of a product versus the company’s objectives, at the end its all about profit. Estimating Total Sales Estimating Costs and Profits www.prunsvirata.blogspot.com

21. 5. The concept of _________ is a way to determine whether they satisfy the company’s objectives. A. Comsumer Analysis B. Business Analysis C. Competitor Analysis D. Customer Analysis E. Marketing Analysis www.prunsvirata.blogspot.com

22. 6. The development of a prototype that embodies the key attributes described in the product-concept statement is called ? A. Product Prototype B. Physical Prototype C. Product-Concept Prototype D. Partial Prototype E. Promotional Prototype www.prunsvirata.blogspot.com

23. Managing the Development Process : DEVELOPMENT TO COMMERCIALIZATIONConcept 6 – PRODUCT DEVELOPMENT Physical prototypes – development of a prototype that embodies the key attributes described in the product-concept statement Customer Tests- rigorous functional test Alpha Testing – testing the product within the firm Beta Testing – testing with the customers www.prunsvirata.blogspot.com

24. Physical prototypes help gives you an idea on how your product will look like and thus allowing you to modify it according to your customers’ needs. Physical prototypes www.prunsvirata.blogspot.com

25. 6. The development of a prototype that embodies the key attributes described in the product-concept statement is called ? A. Product Prototype B. Physical Prototype C. Product-Concept Prototype D. Partial Prototype E. Promotional Prototype www.prunsvirata.blogspot.com

26. 7. A method of consumer goods marketing testing which uses advertising resources to measure sales generated from these activities is ? A. Conjoint Analysis Testing B. Sales Wave Research C. Simulated Test Marketing D. Controlled Test Marketing E. Test Markets www.prunsvirata.blogspot.com

27. Managing the Development Process : DEVELOPMENT TO COMMERCIALIZATIONConcept 7 – MARKET TESTING Consumer-Goods Market Testing Four Major Methods of consumer-goods market testing Sales Wave Research – products offered to customers at no cost then measures the customers’ reaction and repeat buy Simulated Test Marketing – uses advertising resources such as tv commercials or print ads measures the sales generated from this activities Controlled Test Marketing – research firm manages a panel of stores that will carry the new products for a fee Test Markets – uses full advertising and promotion campaign to certain cities www.prunsvirata.blogspot.com

28. Simulated Test Marketing measures the effect of advertisement resources on your customers’ buying behavior. Consumer-Goods Market Testing Four Major Methods of consumer-goods market testing Sales Wave Research Simulated Test Marketing www.prunsvirata.blogspot.com

29. 7. A method of consumer goods marketing testing which uses advertising resources to measure sales generated from these activities is ? A. Conjoint Analysis Testing B. Sales Wave Research C. Simulated Test Marketing D. Controlled Test Marketing E. Test Markets www.prunsvirata.blogspot.com

30. 8. What question answers the concept of commercialization if we do a product launch ? A. When B. Where C. To Whom D. What E. How www.prunsvirata.blogspot.com

31. Managing the Development Process : DEVELOPMENT TO COMMERCIALIZATIONConcept 8 – COMMERCIALIZATION When (Timing) Where (Geographic Strategy) To Whom (Target-Market Prospects) How (Introductory Market Strategy) www.prunsvirata.blogspot.com

32. A product launch is one kind of strategy to introduce new products to the market. To Whom (Target-Market Prospects) Students Runners All Men Only Female Only Adults Only How (Introductory Market Strategy) Product Launch Advertisements Store Distribution www.prunsvirata.blogspot.com

33. A. When B. Where C. To Whom D. What E. How www.prunsvirata.blogspot.com 8. What question answers the concept of commercialization if we do a product launch ?

34. 9. The five stages of adoption process are in the following order ? A. Awareness, Interest, Evaluation, Trial, Adoption B. Interest, Awareness, Trial, Evaluation, Adoption C. Awareness, Evaluation, Interest, Trial, Adoption D. Awareness, Trial, Evaluation, Interest, Adoption E. Interest, Awareness, Evaluation, Trial, Adoption www.prunsvirata.blogspot.com

35. CONSUMER – ADOPTION PROCESSConcept 9 – STAGES IN THE ADOPTION PROCESS Five Stages of Adoption Process Awareness – customer is aware of the product but lacks information Interest – customer is stimulated to seek information about the product Evaluation – customer considers whether to try the product Trial – customer tries the product Adoption – customer decides to make full or regular use of the product www.prunsvirata.blogspot.com

36. Every customer experience the five stages of the adoption process in order from awareness to adoption before they become loyal to a product. 1- Awareness, 2- Interest Five Stages of Adoption Process Awareness A medical representative introduces a new drug. Interest Doctor requests for more studies regarding the drug. www.prunsvirata.blogspot.com

37. Evaluation Doctor reviews the literature and clinical studies provided. Trial Medical Representative gives the doctor sample medicines for trial patients. www.prunsvirata.blogspot.com Every customer experience the five stages of the adoption process in order from awareness to adoption before they become loyal to a product. 3- Evaluation, 4- Trial

38. Adoption Once proven effective and will improve the quality of life of the patient, the doctor will prescribe the medicine to his patients and will be his top of mind choice medication for that ailment. www.prunsvirata.blogspot.com Every customer experience the five stages of the adoption process in order from awareness to adoption before they become loyal to a product. 5 - Adoption

39. 9. The five stages of adoption process are in the following order ? A. Awareness, Interest, Evaluation, Trial, Adoption B. Interest, Awareness, Trial, Evaluation, Adoption C. Awareness, Evaluation, Interest, Trial, Adoption D. Awareness, Trial, Evaluation, Interest, Adoption E. Interest, Awareness, Evaluation, Trial, Adoption www.prunsvirata.blogspot.com

40. 10. In the consumer adoption process the effect of one person has on another’s purchase probability is what type of factor? A . Characteristic of the Innovation B. Organizations Readiness to Adopt to Innovation C. Characteristic of Adoption D. Readiness to try new products and personal influence E. Organizations readiness to try new products and personal influence www.prunsvirata.blogspot.com

41. CONSUMER – ADOPTION PROCESSConcept 10 – FACTORS INFLUENCING THE ADOPTION PROCESS READINESS TO TRY NEW PRODUCTS AND PERSONAL INFLUENCE – the effect one person has on another’s attitude or purchase probability CHARACTERISTICS OF THE INNOVATION – some products catch on immediately, whereas others take a long time to gain acceptance ORGANIZATION’S READINESS TO ADOPT INNOVATIONS – adoption is associated with variables in the organization’s environment www.prunsvirata.blogspot.com

42. In the local setting customers buy the products that are endorsed by their idols such as celebrity endorsers. READINESS TO TRY NEW PRODUCTS AND PERSONAL INFLUENCE Influence of endorsers www.prunsvirata.blogspot.com

43. 10. In the consumer adoption process the effect of one person has on another’s purchase probability is what type of factor? A . Characteristic of the Innovation B. Organizations Readiness to Adopt to Innovation C. Characteristic of Adoption D. Readiness to try new products and personal influence E. Organizations readiness to try new products and personal influence www.prunsvirata.blogspot.com

44. Top 10 Learning Questions Chapter 20 Introducing New Market Offerings Marketing Mangement Philip Kotler , Kevin Lane Keller 13th Edition PaoVirata September 2011 Prof. Bong De Ungria pRUNSViRATA www.prunsvirata.blogspot.com