1.

New product development concerns the management of various disciplines involved in the
development of new products.
2. Ongoing Market planning is Setting the future direction of the business. The effects of any
corporate planning may be important and long term
3. Ongoing Market Planning is The continual analysis of internal R&D projects and external
technology scanning will lead to numerous technical opportunities that need to be considered
by the business
4. NPD provides an opportunity for growing the business.
5. Ansoff’s matrix is used to identify growth options by combining two key variables: an increase
in market opportunities and an increase in product opportunities
6. If the business is growing by focusing on current products and current markets then the
business is following a market development strategy
7. If the business is focusing on new products in current markets then it is following a product
development strategy
8. If the business is focusing on new markets and new products then it is following a
diversification strategy
9. If the business is focusing on current products and new markets then it is following a market
penetration strategy
10. 18. The products objective is no change in the market and no technological change, then its
product development strategy would be to sustain
11. The products objective is no change in the market and an improved technology , then its
product development strategy would be replacement
12. The products objective is no change in the market and introduces a new technology , then its
product development strategy would be reformulation
13. The products objective is a Strengthened market and introduces a new technology , then its
product development strategy would be product line extension
14. The products objective is a Strengthened market and Improved technology , then its product
development strategy would be product merchandising
15. The products objective is a Strengthened market and no technological change , then its
product development strategy would be improved product
16. The products objective is a new market and a new technology then the product development
strategy is diversification
17. The products objective is a new market and an improved technology then the product
development strategy is market extension
18. The products objective is a new market and an no technological change then the product
development strategy is new use
19. It is theoretically possible to label a product ‘new’ merely by altering one of these dimensions
Technology, Brand Name, Packaging, Quality Specifications, Level of Service, or Packaging
20. Newness is not relative to what preceded the product
21. New-to-the-world products represent a large proportion of all new products introduced
22. New-to-he-world products are the first of their kind and create a new market. They are
inventions that usually contain a significant development in technology,
23. New product lines Are not new to the marketplace, but are products are new to the particular
company.
24. New product lines do not allow the firm They provide an opportunity for the company to
enter an established market for the first time.
25. Additions to existing lines (line additions) is not a subset of new product lines
26. The distinction of addition to product lines it that, whilst the company already has a line of
products in this market, the product is significantly different from the present product
offering, but not so different that it is a new line
27. Improvements and revisions to existing products These new products are replacements of
existing products in a firm’s product line
28. reducing production costs does not provide enormous added-value potential .
29. Cost reduction may not result in product improvement
30. Repositioning refers to the discovery of new applications for existing products
31. Repositioning has as much to do with technical development than with consumer perception
and branding.
32. Monitoring and evolution is the first step in the liner NPD model
33. Idea generation is the last step in the linear NPD model
34. Communication comes before test marketing in the NPD Model
35. Product Development comes before business analysis in the liner NPD Model
36. Concept Testing is the third step in the linear NPD model
37. The linear NPD Model has 8 steps which are idea generation, idea scanning, concept testing,
business analysis, product development, test marketing, communication, and Monitoring and
Evaluation.
38. Departmental-stage models represent the latest form of NPD models
39. Departmental-stage models are based around the linear model of innovation, where each
department is responsible for certain tasks
40. Activity-stage model emphasize activities conducted;
41. Activity-stage they provide a worse representation of reality
42. Activity Based Models facilitate iteration of the activities through the use of feedback loops,
something that the departmental-stage models do not
43. Activity-Stage Models do not highlight the simultaneous nature of the activities within the
NPD process
44. Common problems that occur within the NPD process revolve around communications
between different departments
45. Projects rarely would be passed back and forth between functions.
46. cross-functional teams (CFT) approach removes has a a dedicated project team representing
people from a variety of functions
47. The use of cross-functional teams requires a fundamental modification to an organization's
structure. In particular,
48. CFT does not place emphasis on the use of project management and interdisciplinary teams.
49. Decision-stage models represent the NPD process as a series of decisions that need to be
taken in order to progress the project
50. Stage Gate process Decision-stage models represent the NPD process as a series of decisions
that need to be taken in order to progress the project
51. The framework of the stage-gate process includes work-flow and decision-flow paths and
defines the necessary supporting systems and practices
52. Multifunctional teams do not have to complete a prescribed set of related cross-functional
tasks in each stage prior to obtaining management approval to proceed to the next stage of
product development
53. Network models emphasize the external linkages coupled with the internal activities that
contribute to successful NPD
54. Finance, Marketing and Sales, Research and development, and Engineering and
Manufacturing all require external inputs in the form of competitors, suppliers, distributers,
and customers which leads to the accumulation of knowledge over time
55. Marketing does not require external input from social media
56. Research and Development and Engineering and manufacturing do not require knowledge
from universities change in marketing, then
57. Only 10 per cent of new products introduced are new to both the market and the company
58. If there is no change in marketing and the product then there is no change in the marketing
mix effort required for each NPD
59. If there is a modified product and modified marketing, then the marketing mix is refurnished
60. If there is a new market segment and a technological change then there is a neo innovation in
the marketing mix effort required for each NPD
61. If there is a new market segment and no change in the product then there is tangible
repositioning in the marketing mix effort required for each NPD
62. If the product is modified and the with no change in the marketing the there unconscious
substitution
63. If there is no change in the product but a new market in marketing then the marketing mix
effort for each NPD is intangible repositioning
64. If there is modified marketing and a technology change in the product then the effort required
in the marketing mix is relaunch
65. If there is no change in marketing but a technology change then the marketing mix effort
required for each NPD is facelift
66. If there is modified marketing and a technology change in the product then the marketing mix
effort required for each NPD is Conscious substitution
Answer Key

1. T
2. F
3. F
4. T
5. T
6. F
7. T
8. T
9. F
10. T
11. F
12. F
13. T
14. F
15. F
16. T
17. T
18. T
19. T
20. F
21. F
22. T
23. T
24. F
25. F
26. T
27. T
28. F
29. T
30. T
31. F
32. F
33. F
34. F
35. F
36. T
37. T
38. F
39. T
40. T
41. F
42. T
43. F
44. T
45. F
46. T
47. T
48. F
49. T
50. T
51. T
52. F
53. T
54. T
55. F
56. F
57. T
58. T
59. T
60. T
61. F
62. F
63. T
64. F
65. F
66. T