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Exam 10: Developing and Managing Products

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Question 21

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In 2006,Coca-Cola North American debuted Gold Peak iced tea.According to Ray Crockett,spokesperson for Coke,"In looking at the ready-to-drink tea market,we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make.Gold Peak is a quality product that brings back that classic taste." -Refer to Gold Peak.The tea has high marketing costs as well as high production costs.Promotions for the product are aimed at informing consumers that this premium product tastes like it's home-brewed.In which stage of the product life cycle is Gold Peak iced tea?

A) introductory
B) growth
C) maturity
D) decline

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Question 22

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It is considered inefficient to use concept tests during the idea screening stage of the new-product development process.

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Question 23

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What is the most important factor in a successful new-product introduction? What are three reasons that products fail? Identify five characteristics of firms that typically experience success in new-product introductions.

Briefly describe a typical marketing strategy followed for the four Ps in each stage of the product life cycle.Name the stages of the product life cycle at the top of the chart.

The maker of Skittles candy tested and prepared hundreds of batches of candy for taste-testers,who were employees of the company.The taste-testers were instructed to identify the best formula for mint-flavoured Skittles.What type of test was used?

There are five product characteristics that can be used to predict and explain the rate of acceptance and diffusion of a new product.Name and briefly describe four of these characteristics.State the impact of the characteristic on diffusion.

When choosing a test market,managers need to consider many criteria for a good test market city.List six criteria.

Andersen Electronics is currently engrossed in its first estimations of costs and revenues for a new amusement park video skill game.This firm is engaged in a new-product business analysis.

In the early 1900s,a new product was developed-the phonograph record.It allowed people to listen to and appreciate recorded music in the privacy of their homes.At first,consumers were reluctant because the idea was so novel and difficult to comprehend.During the 1930s,the pioneers in the record industry were experiencing strong sales and profits.As a result,other firms began to enter the market and competition intensified.At this point,there were hundreds of record producers and manufacturers.During the 1940s and 1950s,sales continued to increase,but at a much slower rate.The market stayed at approximately the same level until the late 1960s when a new technology arrived in the form of the eight-track tape.The record market began a slow decrease in sales.By the 1970s,another new technology,cassette tapes,replaced the eight-track tape.During the 1970s and 1980s,record production continued to decrease.In the late 1980s,sales dropped rapidly as yet another new technology arrived,the compact disc.Digital downloading of songs from online stores like iTunes has become the norm.Today,most stores no longer carry records,which have become a niche product. -Refer to Music Industry.The market for record albums in the 1930s suggests phonograph records were in which stage of the product life cycle at that time?

An electronics store is currently seeing how Edmontonians react to a retail concept called Studio D,which is targeted to women.Edmonton is the only city in which Studio D stores were introduced.The store will closely monitor the reactions of customers to the store and its marketing program.What is the store using to determine consumer reaction to a new retailing concept?

In 2006,Coca-Cola North American debuted Gold Peak iced tea.According to Ray Crockett,spokesperson for Coke,"In looking at the ready-to-drink tea market,we found that the one place that nobody seemed to be playing was in the category of classic iced teas like mother used to make.Gold Peak is a quality product that brings back that classic taste." -Refer to Gold Peak.Ray Crockett,spokesperson for Coke,said,"We're going to do a lot of sampling with this product because we believe that if people try it,they're going to love it and stick with it." In other words,what will its adoption rate rely on?

When friends of Brian Richardson went to the carnival,they always wanted to take him with them because Richardson had an uncanny ability to win almost every arcade game he played.Usually by the end of the evening his friends were also winning because Richardson did not mind sharing his secrets.His friends urged him to write a book.After several attempts,Richardson created The Secrets of Amusement Park Games-Revealed.In the 85-page book,Richardson reduces the art of playing arcade games to a science.According to him,the trick is to realize each game is not a game of chance.Richardson's mini-book is available at Amazon.com for $5.95. -Refer to Amusement Park Games.In terms of the new-product development process,which stage is the book's availability on Amazon.com?

Diffusion is the process by which the adoption of an innovation spreads.

What is a product that is perceived as new by a potential adopter,whether the product is "new to the world" or simply new to the individual?

What is a process where a group thinks of as many ways to vary a product or solve a problem as possible without considering the practicality of the ideas?

Who adopts a product because most of their friends have already done so,and their adoption is usually the result of pressure to conform because they rely on group norms?

After successful business analysis of a new product,the development stage begins.Describe the development process.Be sure to explain the difference between laboratory testing and use testing.

After years of development and testing,Jabra Corporation unveiled the Jabra 1000 earbud phone.The entire device fits in your ear.It resembles those tiny in-ear speakers that let you listen to an iPod in private-except that Jabra's unit is a transmitter as well.It picks up your voice by amplifying sound vibrations in your bones.Therefore,there's no microphone boom to jut out in front of your face.Because the bone vibrations must be amplified,a special chip in the part of the system that connects to the base of your phone uses noise-cancellation technology to screen out background sounds.This anti-noise chip generates a mirror image of outside noises,and the colliding sound waves erase each other.The main electronics package-about the size of a deck of cards-also monitors the quality of the phone line and automatically raises the volume of voice transmissions when the connection is weak.This tech-talk isn't cheap: the earbud phone lists for $329. -Refer to Jabra Corporation.The Jabra 1000 described above is what type of new product?

The multiple-step new-product development process is an essential ingredient in new-product development.List the seven steps of this process.

When Glade brand air freshener began marketing a clean linen-scented air spray,how could the action be classified?