Product Life Cycle
Terms in this set (30)
Which of the following is typically not considered a reason why new products fail?
The idea for the product is good, but the market has been underestimated.*
The greatest number of new product ideas come from:
Company internal sources
Simulated test marketing:
does not allow competitors to get a look at the companies new product. *
A product concept is:
a detailed version of the idea expressed in meaningful terms *
In launching a new product, a company must make several decisions. Which of the following is not a decision it makes during commercialization?
Product form (what)
A product life cycle can describe a:
Product form, product class, and brand
Identify the proper order of a typical life cycle:
Introduction, growth, maturity, decline
Product_______is a period of rapid market acceptance and increasing profits.
In using a_____________modification strategy during the maturity stage of the product life cycle the company is attempting to increase consumption of the current product.
A ______ is a currently accepted or popular style in a given field whose sales curve is similar to that of a typical product.
During the maturity stage of the life cycle, profits are_______ while sales are____________.
Declining, slowing or declining
The number of competitors is typically greatest during the________________stage of the product life cycle.
A strategy of quality improvement which aims at increasing product performance is an aspect of____________modification
Under the______________product development approach to new product development,one company department works individually to complete its stage of the process before passing the new product along to the next department and stage.
The purpose of the idea screening stage of the new product development process is:
To identify good ideas and drop bad ideas
One way in which a company can obtain new products is through acquisition-that is, buying a company, a patent, or a license to produce someone else's product.
Research has found that the new product failure rate for consumer goods exceeds the failure rate of industrial products.
Successful new product development may be even more difficult in the future because of growing social and governmental constraints.
Distributors and suppliers are typically not regarded as a valuable source of new product ideas.
Marketing strategy is both a cause and result of the product life cycle.
Harvesting a declining product refers to gradually reducing market support in order to increase short run profits.
The Simms Corporation has greatly improved the safety of its electric hedge trimmers. This action would be an example of the strategy of:
Market testing is the stage when the product and marketing program are introduced into more realistic market settings.
Product classes have a shorter life cycle than product forms.
During the growth stage of the product life cycle both sales and profits peak and begin to decline due to the growing numbers of competitors.
During the introduction stage of the product life cycle, profits are negative or low because of low sales and heavy distribution and promotion expenses.
Once a product has begun its life cycle, typically a firm can do little to extend it.
Functional tests are conducted under laboratory and field conditions to make sure the product performs safely and effectively.
When a product has reached the decline phase of its life cycle, it should be automatically dropped.
Top management should carefully define and communicate its new product development strategy to company personnel after the new product development process has begun so as not to prejudice the process and stifle creativity.