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1 | |
Four broad categories of new products exist. These are 1. Product replacements, 2. Additions to product line, 3. New-to-the-world products and one of the following: |
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| | A) | Discounted products |
| | B) | New product lines |
| | C) | New product portfolio |
| | D) | Mature products |
| | E) | Industrial products |
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2 | |
When a company attempts to create or nurture an innovative culture it must not tolerate failure. |
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| | A) | TRUE |
| | B) | FALSE |
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3 | |
Marketing directors have described ways in which senior managers can support New Product Development, two of these are: |
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| | A) | Provide hands on management and set tight dead lines. |
| | B) | Show personal interest and encourage team working. |
| | C) | Leave R&D departments alone and provide adequate funding. |
| | D) | Encourage the use of new technology and set strict budgets. |
| | E) | Employ new graduates and agree large budgets to support them. |
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4 | |
In the eight stages of the New Product Development process the stage directly following the Ideas generation stage is: |
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| | A) | Screening |
| | B) | Product development |
| | C) | Business analysis |
| | D) | Concept testing |
| | E) | Commercialisation |
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5 | |
Hamel and Prahalad argue that global competitive battles will be won by those companies who have: |
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| | A) | Established brand names. |
| | B) | E-technology capabilities. |
| | C) | Risk management systems and cultures. |
| | D) | Corporate imagination. |
| | E) | The largest market share in a given market. |
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6 | |
Test marketing involves: |
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| | A) | Trying out a new marketing mix internally, on staff, to find any weaknesses. |
| | B) | The launch of a new product in areas representative of the intended market. |
| | C) | Testing the communications mix, especially TV advertising due to it’s high cost. |
| | D) | Testing the performance of products to find any faults before they are fully launched. |
| | E) | The launch of an undeveloped product to test the level of demand. |
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7 | |
According to Wheelwright and Clark project teams should be established to bring new products to the market place. |
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| | A) | TRUE |
| | B) | FALSE |
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8 | |
Effective new product commercialisation strategy relies upon marketing managers making clear strategic choices regarding: |
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| | A) | Branding |
| | B) | Packaging |
| | C) | Production |
| | D) | The target market |
| | E) | The diffusion process |
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9 | |
In the diffusion of innovation process the second group of new product adopters, representing 13.5% of the total market, are called: |
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| | A) | Innovators |
| | B) | Early majority |
| | C) | Stars |
| | D) | Early adopters |
| | E) | Late majority |
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10 | |
The most common form of new products introduced into the market, are new-to-the-world products. |
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| | A) | TRUE |
| | B) | FALSE |
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11 | |
When considering product replacement strategies a facelift is: |
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| | A) | The basic product is retained but other elements of the marketing mix and the target customers change. |
| | B) | A fundamental technology change, change of target market and the marketing mix. |
| | C) | A modification of name, promotion, packaging and or distribution. |
| | D) | A minor change with little or no change to the rest of the marketing mix. |
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12 | |
To fully understand new product development we need to distinguish between _____________and ______________. |
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| | A) | Innovation and introduction |
| | B) | Invention and innovation |
| | C) | Innovation and development |
| | D) | Invention and production |
| | E) | Invention and development |
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13 | |
When considering new product development, speed to market is important. |
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| | A) | TRUE |
| | B) | FALSE |
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14 | |
New product development Project teams can include staff from R&D, engineering, manufacturing, finance and marketing. Each business unit in an organisation needs information about new products. |
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| | A) | TRUE |
| | B) | FALSE |
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15 | |
The Internet plays an important role in new product development by providing the ability to allow project teams to _____________ their work in ‘real time’. |
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| | A) | Download |
| | B) | Save |
| | C) | Share |
| | D) | Co-ordinate |
| | E) | Confer |
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16 | |
Some companies use __________________ as a technique to stimulate the creation of ideas. |
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| | A) | Barnstorming |
| | B) | Briefing |
| | C) | Brainstorming |
| | D) | Banqueting |
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17 | |
Two reasons why the speed of product development is being accelerated are 1. ________________ and 2) competitive advantage. |
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| | A) | Rapidly changing markets |
| | B) | Intense competition |
| | C) | Built in obsolescence |
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18 | |
A central notion of the theory of diffusion of innovations is that people or organisations that comprise the market are not all at the same state of readiness to buy when a new product is launched. |
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| | A) | TRUE |
| | B) | FALSE |
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19 | |
Product churning is: |
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| | A) | Changing the product and changing the marketing mix. |
| | B) | A major technological change to the product. |
| | C) | Moving the product into a new market. |
| | D) | A continuous spiral of new product introductions. |
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20 | |
The characteristics of a product can affect the rate of adoption of an innovation. For example the comparability with people’s values, lifestyles and behaviours. |
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| | A) | TRUE |
| | B) | FALSE |