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Chapter9New-ProductDevelopmentandProductLife-CycleStrategiesWhatarethetwowaysthatacompanycanobtainnewproducts?lineextensionandbrandmanagementinternaldevelopmentandbrandmanagementnew-productdevelopmentandacquisitionservicedevelopmentandproductextensionmarketmixmodificationandresearchanddevelopmentAnswer:CDiff:2PageRef:258Skill:ConceptObjective:9-1Productimprovements,productmodifications,andoriginalproductscanallbeclassifiedaspioneerproductsnewproductsproductconceptsproductideastestproductsAnswer:BDiff:1PageRef:258Skill:ConceptObjective:9-1WhichofthefollowingisNOTapotentialreasonforanewproducttofail?anunderestimatedmarketsizeapoorlydesignedproductanincorrectlypositionedproducthigherthananticipatedcostsofproductdevelopmentineffectiveadvertisingAnswer:ADiff:2PageRef:258Skill:ConceptObjective:9-1WhichofthefollowingisNOTachallengepresentedbytheproductlifecyclethatafirmmustface?Allproductseventuallydecline.Changingtastes,technologies,andcompetitionaffectthemarketingoftheproductasitpassesthroughlifecyclestages.Afirmmustbegoodatdevelopingnewproductstoreplaceagingones.Afirmmustbegoodatadaptingitsmarketingstrategies.Itisdifficulttoplotthestagesasaproductgoesthroughthem.Answer:EDiff:2PageRef:258Skill:ConceptObjective:9-1Thecreationofasuccessfulnewproductdependsonacompany'sunderstandingofits anditsabilitytodeliver topetitors,distributors,andemployees;newstylescustomers,brands,products;productimagescustomers,competitors,andmarkets;superiorvalueproduct,marketingmix,andmarketingstrategy;functionalfeaturesproductlifecycle,legalresponsibilities,andsocialresponsibilities;innovationsAnswer:CDiff:2PageRef:259Skill:ConceptObjective:9-2Newproductdevelopmentstartswith .ideagenerationideascreeningconceptdevelopmentconcepttestingtestmarketingAnswer:ADiff:1PageRef:259Skill:ConceptObjective:9-2Executives,manufacturingemployees,andsalespeopleareallexamplesof .externalsourcesfornew-productideasinternalsourcesfornew-productideascoremembersofinnovationmanagementsystemsresearchanddevelopmentteammembersnew-productcommitteemembersAnswer:BDiff:2PageRef:260AACSB:CommunicationSkill:ConceptObjective:9-2Adetailedversionofanewideastatedinmeaningfulcustomertermsiscalleda productideaproductconceptproductimageproductproposalproductmovementAnswer:BDiff:2PageRef:262AACSB:CommunicationSkill:ConceptObjective:9-2A isthewayconsumersperceiveanactualorpotentialductideaproductconceptproductimagetestmarketconcepttestAnswer:CDiff:1PageRef:262AACSB:CommunicationSkill:ConceptObjective:9-2Anattractiveideamustbedevelopedintoa .productideaproductconceptproductimagetestmarketproductstrategyAnswer:BDiff:2PageRef:262Skill:ConceptObjective:9-2 callsfortestingnew-productconceptswithgroupsoftargetconsumers.ConceptdevelopmentConcepttestingIdeagenerationIdeascreeningTestmarketingAnswer:BDiff:1PageRef:263Skill:ConceptObjective:9-2Intheconcepttestingstageofnew-productdevelopment,aproductconceptin formispresentedtogroupsoftargetconsumers.physicalorsymbolicprototypefinalmarket-testedcommercialAnswer:ADiff:2PageRef:263Skill:ConceptObjective:9-2Withwhatgroupsdofirmsconductconcepttestingfornewproducts?suppliersemployeestargetcustomersmanufacturerscompetitorsAnswer:CDiff:3PageRef:263Skill:ConceptObjective:9-2Forsome ,asimpledescriptionconsistingofawordorpicturemightbesufficient.concepttestsproductconceptsmarketingstrategiesproductdevelopmentsbusinessanalysesAnswer:ADiff:2PageRef:263AACSB:CommunicationSkill:ConceptObjective:9-2Afterconcepttesting,afirmwouldengageinwhichstageindevelopingandmarketinganewproduct?ideascreeningmarketingstrategydevelopmentbusinessanalysisproductdevelopmenttestmarketingAnswer:BDiff:2PageRef:263Skill:ConceptObjective:9-2Thefirstpartofthemarketingstrategystatementdescribesthetargetmarket;theplannedproductpositioning;andgoalsforsales,profits,and .marketsharecompetitionsecondarymarketcompetition'santicipatedreactionlife-cycledurationAnswer:ADiff:3PageRef:263Skill:ConceptObjective:9-2Thesecondpartofthemarketingstrategystatementoutlinestheproduct'splannedprice,distribution,and forthefirstyear.advertisingpromotionmarketingbudgetpositioningtargetmarketAnswer:CDiff:3PageRef:264Skill:ConceptObjective:9-2ThethirdpartofthemarketingstrategystatementincludesallofthefollowingEXCEPTlong-runsalesprofitgoalsmarketingmixstrategiesshort-runsalesAandCAnswer:DDiff:3PageRef:264Skill:ConceptObjective:9-2Areviewofthesales,costs,andprofitprojectionsforanewproducttofindoutwhethertheysatisfythecompany'sobjectivesiscalleda .businessfeasibilityplanmarketingstrategydevelopmentbusinessanalysisproductacceptanceproposalAnswer:CDiff:1PageRef:264Skill:ConceptObjective:9-2Duringwhichstageofnew-productdevelopmentwillmanagementmostlikelyestimateminimumandmaximumsalestoassesstherangeofriskinlaunchinganewproduct?concepttestingmarketingstrategydevelopmentbusinessanalysisproductdevelopmenttestmarketingAnswer:CDiff:2PageRef:264Skill:ConceptObjective:9-2Themajorpurposeoftestmarketingistoprovidemanagementwiththeinformationneededtomakeafinaldecisionabout .howtodevelopamarketstrategywhichmarkettocompeteinwhethertolaunchthenewproducthowtocompeteinthemarkethowlongtocompeteinthemarketAnswer:CDiff:3PageRef:268Skill:ConceptObjective:9-2Whichofthefollowingisnecessaryforsuccessfulnew-productdevelopment?aholisticandsequentialproductdevelopmentapproachacustomer-centered,team-based,systematicapproachateam-based,innovation-managementapproachamarketpioneermindsetandaholisticapproachaninnovationmanagementsystemandsequentialproductdevelopmentAnswer:BDiff:3PageRef:268Skill:ConceptObjective:9-2 istheproductlifecycleperiodwhensalesfalloffandprofitsdrop.IntroductionGrowthMaturityDeclineDevelopmentAnswer:DDiff:1PageRef:273Skill:ConceptObjective:9-3AllofthefollowingarestagesinthePLCEXCEPT introductiongrowthmaturityadoptiondeclineAnswer:DDiff:1PageRef:273Skill:ConceptObjective:9-3Inthe stage,thefirmfacesatrade-offbetweenhighmarketshareandhighcurrentprofit.A)growthB)declineC)maturityD)introductionE)adoptionAnswer:ADiff:2PageRef:277Skill:ConceptObjective:9-3WhichstageinthePLCnormallylastslongerandposesstrongchallengestothemarketingmanagers?A)growthB)declineC)maturityD)phase-inE)adoptionAnswer:CDiff:1PageRef:277Skill:ConceptObjective:9-3Mostproductsinthemarketplaceareinthe stageoftheproductlifecycle.A)growthB)declineC)maturityD)introductionE)developmentAnswer:CDiff:2PageRef:277Skill:ConceptObjective:9-3Whichofthefollowingisaproductconcept?abattery-poweredall-electriccarapocket-sizedigitalmusicplayeranenergyefficienthumidifierathin,lightweightlaptopwithextendedbatterylifeappealingtostudentsandyoungprofessionalswhowantaccesstotheircomputeranywhere,anytimeahigh-tech,stylishrunningshoewithbuilt-insensorstorecordthedistancethewearerhaswalkedorrunAnswer:DDiff:2PageRef:262AACSB:ReflectiveThinkingSkill:ApplicationObjective:9-2Companiesrarelysolicitideasfromcustomersduringtheideagenerationstageofproductdevelopment.Answer:FALSEDiff:1PageRef:261AACSB:CommunicationSkill:ConceptObjective:9-2Aproductideaisanideaforapossibleproductacompanycanofferthemarket,whileaproductconceptisadetailedversionoftheideastatedinmeaningfulconsumerterms.Answer:TRUEDiff:3PageRef:262Skill:ConceptObjective:9-2Thebusinessanalysisstagerepresentsthefirstlargejumpinfinancialinvestmentinthenew-productdevelopmentprocess.Answer:FALSEDiff:2PageRef:264Skill:ConceptObjective:9-2Acompanylaunchinganewproductintothemarketmustfirstdecideonwhentolaunchtheproduct.Answer:TRUEDiff:2PageRef:268Skill:ConceptObjective:9-2JumBoGamesislaunchinganewsetofgametoysinthecommercializationstage.Thefirstdecisiontomakeisintroductiontimingandthesecondiswheretolaunchthenewproduct.Answer:TRUEDiff:2PageRef:268Skill:ConceptObjective:9-2Sequentialproductdevelopmenthastheadvantageofnotonlybeingateam-orientedapproach,butitisalsofasterinbringingproductstomarket.Answer:FALSEDiff:1PageRef:269Skill:ConceptObjective:9-2Toavoidtoofewnewproductideasandthefailureofmanygoodideas,managementshouldinstallaninnovationmanagementsystemthatcollects,reviews,evaluates,andmanagesnew-productideas.Answer:TRUEDiff:1PageRef:271AACSB:CommunicationSkill:ConceptObjective:9-2AlthoughproductsthatremaininthematuritystageofthePLCseemunchanged,themostsuccessfulonesactuallyevolvetomeetchangingconsumerneeds.Answer:TRUEDiff:2PageRef:277Skill:ConceptObjective:9-3Whenacompanydecidestomaintainaproductinthedeclinestage,itwillreducecostsandhopethatsalesholduptoincreasetheprofitsintheshortrun.Answer:FALSEDiff:2PageRef:279Skill:ConceptObjective:9-3Thefederalgovernmentmaypreventacompanyfromaddingproductsthroughacquisitionsifacquisitionthreatenstolessencompetition.Answer:TRUEDiff:2PageRef:280AACSB:EthicalReasoningSkill:ConceptObjective:9-4Theinternationalgrowthofmanyprofessionalandbusinessservicessuchasaccounting,consulting,andadvertisingledtotheglobalizationoftheclientcompaniestheyserve.Answer:FALSEDiff:3PageRef:282AACSB:MulticulturalandDiversitySkill:ConceptObjective:9-4Brieflydescribethestepsinthenew-productdevelopmentprocess.Answer:New-productdevelopmentstartswithideagenerationfrominternaland/orexternalsources.Next,theideasmustbereducedthroughideascreening.Oncethenewideasaredecidedupon,theproductconceptmustbedevelopedandtested.Amarketingstrategymustbedevelopedtointroducetheproducttothemarket.Oncetheproductconceptandmarketingstrategyarechosen,abusinessanalysisisconductedtoreviewthesales,costs,andprofitprojectionstoseeiftheywillsatisfythecompany'sobjectives.Aprototypewillnextbecreatedintheproductdevelopmentstage.Testmarketingwillfollow,introducingthenewproductanditsmarketingprogramintomorerealisticmarketsettings.Thelaststepistolaunchornotlaunchthenewproduct.Ifthecompanydecidestolaunchtheproduct,itwillgoaheadwiththecommercializationstageandlatertestitssalesandprofitresults.Diff:3PageRef:259-268AACSB:AnalyticSkillsSkill:ApplicationObjective:9-2Chapter6BusinessMarketsandBusinessBuyerBehaviorBusinessbuyingbehaviorreferstothebuyingbehavioroforganizationsthatbuyallofthefollowingEXCEPT .productsforuseinproductionofotherproductsservicesforuseinproductionofotherservicesproductspurchasedtoreselltoothersproductspurchasedtorenttoothersproductspurchasedforpersonalconsumptionAnswer:EDiff:1PageRef:168Skill:ConceptObjective:6-1Inonewayoranother,mostlargecompaniessellto .consumersotherorganizationsemployeesnot-for-profitcompaniestheservicesectorAnswer:BDiff:2PageRef:168Skill:ConceptObjective:6-1WhichofthefollowingisNOTawaythatbusinessandconsumermarketsdiffer?marketstructureanddemandnatureofthebuyingunitsatisfactionofneedsthroughpurchasestypesofdecisionsdecisionprocessesAnswer:CDiff:3PageRef:169Skill:ConceptObjective:6-1Therearemanysetsof purchasesmadeforeachsetof purchases.consumer;businesstangible;intangibleservice;productbusiness;consumerproduct;serviceAnswer:DDiff:2PageRef:168Skill:ConceptObjective:6-1Whichofthefollowingistrueaboutbusinessmarketersincomparisontoconsumermarketers?Theydealwithfarfewerbutfarlargerbuyers.Theydealwithfarmorebutfarsmallbuyers.Theydealwithamoreelasticmarket.Theydealwithfewerdemandsinfluctuation.Theydealwiththesamedecisionbuyingprocess.Answer:ADiff:2PageRef:169Skill:ConceptObjective:6-1Inatypicalorganization,buyingactivityconsistsoftwomajorparts:thebuying andthebuying .committee;timetime;reorderpointeconomicorderquantity;reorderpointcenter;decisionprocessdeciders;influencersAnswer:DDiff:3PageRef:172Skill:ConceptObjective:6-2ThebuyingcenterandthebuyingdecisionprocessareaffectedbyallofthefollowingfactorsEXCEPT .internalorganizationfactorsinterpersonalfactorsindividualfactorsexternalenvironmentalfactorsself-conceptfactorsAnswer:EDiff:2PageRef:172Skill:ConceptObjective:6-2Thedecision-makingunitofabuyingorganizationiscalledthe .businessbuyerbuyingcenterbuyingsystembusiness-to-businessmarketsupplier-developmentcenterAnswer:BDiff:1PageRef:174Skill:ConceptObjective:6-2A consistsoftheactualusersofproducts,thosewhocontrolbuyinginformation,thosewhoinfluencethedecisions,thosewhodotheactualbuying,andthosewhomakethebuyingdecisions.supplierdevelopmentteamcross-functionalteambuyingcenterqualitymanagementcenterpartnershipmanagementteamAnswer:CDiff:2PageRef:174Skill:ConceptObjective:6-2A(n) controlstheflowofinformationtoothersinthebuyingcenter.userinfluencerbuyergatekeeperdeciderAnswer:DDiff:1PageRef:174AACSB:CommunicationSkill:ConceptObjective:6-2Abuyingcenterisnotafixed,formallyidentified,unitwithinanorganization,butratherasetof assumedbydifferentpeoplefordifferentpurchases.budgetarylimitsinformaljobtitlesbuyingrolesstatusrolesmarketingpositionsAnswer:CDiff:3PageRef:174Skill:ConceptObjective:6-2WhichofthefollowingisNOTincludedinthedecision-makingunitofabuyingorganization?individualswhousetheproductorserviceindividualswhoinfluencethebuyingdecisionindividualswhomakethebuyingdecisionindividualswhosupplytheproductindividualswhocontrolbuyinginformationAnswer:DDiff:2PageRef:174Skill:ConceptObjective:6-2ThemajorinfluencesonthebuyingprocessatGeneralAeronauticsincludecompanypoliciesandsystems,technologicalchange,andeconomicdevelopments.Thetypesofinfluencesonthebuyingprocessinthisscenarioaremostaccuratelycategorizedas and .individual;environmentalorganizational;interpersonalindividual;organizationalenvironmental;interpersonalorganizational;environmentalAnswer:EDiff:3PageRef:176Skill:ConceptObjective:6-2Whichofthefollowingtypesoffactorsinfluencingmembersofabuyingcenteraretypicallythemostdifficultformarketerstoassess?A)economicB)technologicalC)interpersonalD)organizationalE)politicalAnswer:CDiff:3PageRef:176Skill:ConceptObjective:6-2Policies,procedures,andsystemsareallexamplesof influencesonbusinessbuyerbehavior.environmentalauthoritativeinterpersonalorganizationalculturalAnswer:DDiff:2PageRef:176Skill:ConceptObjective:6-216)Status,empathy,andpersuasivenessareallexamplesof influencesonbusinessbuyerbehavior.environmentalindividualinterpersonalorganizationalculturalAnswer:CDiff:2PageRef:176Skill:ConceptObjective:6-2Thefirststepofthebusinessbuyingprocessis .generalneeddescriptionalternativeevaluationsproblemrecognitionorder-routinespecificationperformancereviewAnswer:CDiff:2PageRef:177Skill:ConceptObjective:6-3Abuyerwouldbemostlikelytoreviewtradedirectoriesinwhichstageofthebusinessbuyingprocess?problemrecognitiongeneralneeddescriptionproductspecificationsuppliersearchsupplierselectionAnswer:DDiff:2PageRef:177Skill:ConceptObjective:6-3Inwhichstageofthebusinessbuyingprocessisasupplier'stasktomakesurethatthesupplierisgivingthebuyertheexpectedsatisfaction?problemrecognitionperformancereviewsuppliersearchsupplierselectionorder-routinespecificationAnswer:BDiff:2PageRef:179Skill:ConceptObjective:6-3B-to-Be-procurementyieldsmanybenefits.TheseincludeallofthefollowingEXCEPTreducedtransactioncostsmoreefficientpurchasingforbothbuyersandsellerseliminationofinventoryproblemsreducedorderprocessingcostseliminationofmuchofthepaperworkassociatedwithtraditionalorderingproceduresAnswer:CDiff:2PageRef:181AACSB:UseofITSkill:ConceptObjective:6-3Theleadingbarriertoexpandingelectroniclinkswithcustomersandpartnersonlineiscostlackoftrainedpersonnelconcernoversecuritylackofknowledgelackofevidenceofefficienciesgainedthroughe-procurementAnswer:CDiff:2PageRef:181AACSB:UseofITSkill:ConceptObjective:6-3Governmentorganizationstendtofavor suppliersover suppliers.local;domesticunionized;nonunionizedforeign;domesticdomestic;foreignnonunionized;unionizedAnswer:DDiff:2PageRef:182AACSB:MulticulturalandDiversitySkill:ConceptObjective:6-4Themaindifferencesbetweenbusinessandconsumermarketsincludemarketstructureanddemand,thenatureofthebuyingunit,andthetypesofdecisions.Answer:TRUEDiff:2PageRef:169Skill:ConceptObjective:6-1Onesetofbusinesspurchasesismadeforeachsetofconsumerpurchases.Answer:FALSEDiff:2PageRef:168Skill:ConceptObjective:6-1Abusinessmarketernormallydealswithfarfewerbuyersthantheconsumermarketerdoes.Answer:TRUEDiff:2PageRef:169Skill:ConceptObjective:6-1Buyershavedifferentbuyingstylesinfluencedbyinterpersonalfactorssuchasage,income,education,professionalidentification,andattitudestowardrisk.Answer:FALSEDiff:2PageRef:176Skill:ConceptObjective:6-2Accordingtothestagesofthebusinessbuyingprocess,aftercompletingageneralneeddescription,abusinessbuyershouldnextinvitequalifiedsupplierstosubmitproposal

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