MKTG 361 Chapter 12 Study Guide

New product development

The two reasons that a firm develops new products include enhancing its __________ and adding
depth to a product _______.

What are the (ironically) risks of developing new products or failing to innovate with new products?

What are the four different meanings of “new products?”

__________ innovation – identifies old technologies that can be exploited in new ways or develops
new business models to give customers more than they have come to expect from current products
in a specific market.

The concept of ______ strategies in new product development (NPD) is to take advantage of return
on investment and speed to market, more companies are recognizing the strategy of building new
products using key elements of existing products. What did Milwaukee Tool do with this strategy?

What are the seven stages, in sequence, for the new product development process?

(1) What is the primary task of idea generation? What helpful marketing matrix can be used at this
stage? What is the desired outcome of this stage?
(2) What is the primary task of idea screening? What two mechanisms might be helpful tools at this
stage? What is the desired outcome of this stage? (Note: most new product ideas are rejected
during this phase.)
(3) In concept development and testing, ______ become concepts. What four features should be
included in the description?

What does concept testing help businesses evaluate? Does this process help determine how
target audiences will react to new features?

What does proper market validation reduce? What are the six steps of market validation?

(4) Define marketing strategy in the context of new product development. Define business analysis
in the context of NPD.
(5) Define agile product development. Define prototype testing. What is the goal of prototype
testing?
(6) Define test marketing. What is a key characteristic of the alpha testing environment? Beta
testing differs in that it’s being put to practical use external to the company.

Geographic test markets are appealing – for what three key reasons?

How can competitors interfere with test marketing?

It is possible to conduct simulated test marketing. What are three advantages, and one major
drawback?
(7) _____________ - Refining and finalizing plans and budgets for full-scale manufacturing and
marketing of a product. What four major elements to consider?
 What are four benefits of a rollout approach on entry to market? What are two major
drawbacks?

Product management

What are the three reasons that companies may require adjustments to their product mix?

When a company needs to alter its product mix for competitive reasons, why would a company
delete a product? Why would it need to introduce a new product or modify an existing one?

Two ways marketers can improve the product mix is through ________ extensions and _______
modifications.

What are the four reasons that line extensions provide advantages for a company?

Line extensions and brand extensions both accomplish what two things?

When Diet Coke adds a variety of flavors from lime, lemon, and cherry, it is considered a ______
extension. When Dove soap creates its new line of Dove Men Care products, it is considered a
________ extension (as seen in chapter 11.)

Colgate failed miserably with its _______ extension into frozen meals (chapter 11) but it has been
effective with different toothpastes with different features – Colgate in this instance is successful
with its ______ extension when meeting different needs.

Product modifications mean there have been one or more changes in the characteristics of a
product. What happens to the original product?

What are the three criteria for successful product modification?

There are three types of product modifications. Can you think of a real example for each type?

1.

2.

3.

Define product differentiation. Consumer _________ is critical in differentiating products. What are
the three things that companies must consider when creating and offering products for sale.

Define quality. What are the two dimensions of quality?

What are the three components of product design?

What are product features and how do they differ from product benefits? Can you think of some
real-life examples? Do marketers lead their messaging with features or benefits?

Service of a product can be a competitive advantage. What five reasons have made it important for
products to provide a level of service in support?

Can you think of how Apple, Amazon and Zappos are providing a level of service beyond selling
products?
Define product positioning.

_____________ is a visual technique that shows how customers perceive different products, brands,
or items. It's a useful tool for businesses because it helps them understand customer opinions,
identify market opportunities, and make strategic choices. In what five ways can it help marketers?

Define product positioning.

What are the six most common bases for product positioning?

Define repositioning. How does it affect each element of the marketing mix?

The concept of repositioning can be confused with the idea of rebranding. What does repositioning
do versus rebranding?

Define product deletion. What are three considerations with deleting a product?