Which

of the
followin
g best
describe
s
Innovati
on?

The thinking of novel ideas

The process of conception, development and commercialisation

The successful development of a new product

None of the above

The management process of invention

Most major innovations are the result of:

Maverick scientists who stumble by accident on major new discoveries

Extended efforts by experts in that field

All of the above

Serendipity

Extensive market research

The technology push model of innovation is characterised by:

A marketplace that is a passive receptacle for the fruits of R&D

Extensive consumer research

None of the above

A marketplace that communicates its needs to producers

Extensive market research

The essential nature of the market pull model of innovation is:
A marketplace that can communicate its needs to producers

A large marketplace

A science base that has effective links with industry

All of the above

A powerful research & development (R&D) activity;

The interactive model of innovation recognises that:

Innovations occur as the result of the interaction of the marketplace,
the science base and the organisation's capabilities
Innovations require a significant input from market research

None of the above

Innovations occur as the result of the interaction of the marketplace

and the science base
Innovations require serendipity

Although flawed and overly simplistic the technology push linear

model of innovation can be applied to:
The sports goods industry

None of the above

The food industry

The pharmaceutical industry

The fmcg industries

The innovation network framework emphasises:
The role of marketing

Internal and external interactions

All of the above

The role of science and technology

Industrial innovation includes:

Process innovations

All of the above

Organisational innovations

Radical innovations

Product innovations

The popular view of technological innovation is that of the lone

professor stumbling by accident on major new discoveries. This
has:
None of the above

Helped to stimulate interest in science within schools

Helped scientists inform people about science and technology

Caused considerable harm to the understanding of science and

technology
Helped more people to understand the process of scientific discoveries
 Innovation management may be described as a process and
involves:
A creative effort that if successful results in the introduction of novelty

All of the above

A response to either a need or an opportunity that is context

dependent
The need for further changes

None of the above

1. Innovations provide

A. ? the primary means for differentiating your product from

your competitors’

B. ? higher profit margins

C. ? potential barriers to entry

D. ? all of the above

2. Digital services benefit from innovation because

A. ? There is no shelf space to pay for

B. ? no manufacturing costs

C. ? low distribution fees

D. ? all of the above

3. The most profitable 'Long Tail' companies are the ones that

A. ? offer the largest choice

B. ? scale on database size, not factory output

C. ? offer opportunities for transforming physical distribution

into lower cost and scalable digital distribution

D. ? all of the above

4. Successful innovation happens in four realms

A. ? new products, new technologies, new markets, new

ways of matching firm assets and competences

B. ? commercialization, globalization, capitalization,

commoditization

C. ? Eeny, Meeny, Miney, Moe

D. ? none of the above

5. The core competences a firm need to acquire

A. ? depend on the maturity of the underlying technology

B. ? depend on their competitors

C. ? should be purchased

D. ? none of the above

6. In the era of ferment

A. ? well developed scientifi theories provide the raw

material for emerging technologies

B. ? technology and standards are fluid, and do not

necessarily perform well

C. ? standards have been agreed upon, risk may be lowered

sufficiently to warrant innovation

D. ? all of the above

7. Profitability of an innovation is determined by

A. ? the nature of the innovation

B. ? barriers to entry in imitating it

C. ? understanding complements required to complete the

innovation

D. ? all of the above

8. The majority of innovations

A. ? are 'incremental' in that they make no demands for

significant change in firm competences or markets

B. ? are ‘radical’ in requiring a complete reengineering of

their competences
 C. ? are ‘progressive’ in requiring management of market
transitions

D. ? none of the above

9. The early automotive industry parallels other more recent

technologies in the following way:

A. ? the automotive industry developed in a "knowledge

cluster"

B. ? the U.S. patent system was used to stifle creativity

C. ? the most successful product did not possess better

technology

D. ? all fo the above

10. Ford succeeded because of

A. ? good marketing

B. ? good technology

C. ? sound production

D. ? all of the above

11. The benefits of Ford's technology acrued mainly to

A. ? customers
 B. ? workers

C. ? management

D. ? investors

What
are the
two
ways
that a
compan
y can
obtain
new
product
s?

internal development and merger

line extension and brand management

market mix modification and research and development

service development and product extension

new-product development and acquisition

Which of the following is not a potential cause of the failure of a

new product?
higher than anticipated costs of product development

a poorly designed product

an underestimated market size

an incorrectly positioned product

ineffective advertising
The creation of a successful new product depends on a
company's understanding of its ________ and its ability to
deliver ________ to customers.
product, marketing mix, and marketing strategy; functional features

competitors, distributors, and employees; new styles

customers, competitors, and markets; superior value

customers, brands, products; product images

product life cycle, legal responsibilities, and social responsibilities;

innovations

Executives, manufacturing employees, and salespeople are all

examples of ________.
new-product committee members

core members of innovation management systems

internal sources for new-product ideas

external sources for new-product ideas

research and development team members

Which of the following is perhaps the most important external

source of new-product ideas?
distributors and suppliers

trade magazines, shows, and seminars

customers

engineers

competitors
Your firm wants to use external sources for new product ideas.
After consulting with a friend you learn that all of the following
are common external sources except ________.
competitors

trade shows and magazines

the firm's executives

suppliers

customers

GrayBerry Gifts has just brainstormed a large number of ideas

for adding new products and services after visiting several
buying fairs. The owners will begin the first idea-reducing stage,
called ________ , to arrive at a realistic number to adopt.
idea screening

idea generation

concept development

product concept

idea dissemination

product image

product proposal

product concept

product idea

product movement
An attractive idea must be developed into a ________.
product image

product concept

product idea

product strategy

test market

In the concept testing stage of new-product development, a

product concept in ________ form is presented to groups of
target consumers.
physical or symbolic

final

prototype

commercial

market-tested

After concept testing, a firm would engage in which stage in

developing and marketing a new product?
test marketing

idea screening

business analysis

product development

marketing strategy development

The second part of the marketing strategy statement outlines the
product's planned price, distribution, and ________ for the first
year.
advertising

marketing budget

promotion

target market

positioning

During which stage of new-product development is management

most likely to estimate minimum and maximum sales to assess
the range of risk in launching a new product?
test marketing

product development

concept testing

business analysis

marketing strategy development

business analysis

idea generation

concept development and testing

product development

marketing mix
Under what circumstances might it be wise for a company to do
little or no test marketing?
When the costs of developing and introducing the product are low.

When the product has no substitutes and is new in its category.

When management is not sure of the product.

When management is not sure of the marketing program.

When a new product requires a major investment.

The major purpose of test marketing is to provide management

with the information needed to make a final decision about
________.
how to compete in the market

how to develop a market strategy

which market to compete in

whether to launch the new product

how long to compete in the market

Which of the following costs is most likely associated with the

commercialization stage of new-product development?
identifying target markets

determining the product's planned price, distribution, and marketing

budget
developing a prototype of the product

building or renting a manufacturing facility

paying groups of target consumers for product feedback

Which of the following is necessary for successful new-product
development?
a team-based, innovation-management approach

an innovation management system and sequential product

development
a customer-centered, team-based, systematic approach

a market pioneer mindset and a holistic approach

a holistic and sequential product development approach

________ is a new-product development approach in which one

company department works to complete its stage of the process
before passing the new product along to the next department
and stage.
Product life-cycle analysis

Team-based product development

Simultaneous product development

Micromarketing

Sequential product development

cross-functional teams

departmentalization

a step-by-step process

team efforts

the help of a consultant

Which of the following is a disadvantage of a team-based
approach to new-product development?
Levels of risk can be more easily controlled.

Organizational confusion and tension can be a part of the process.

The process does not work with the shorter life cycles of many of
today's products.
The development effort is not as effective because of team members'
lack of expertise.
It takes longer to get the right products to market.

The search for new-product ideas should be ________ rather

than haphazard.
intermittent

strategically planned

segmented

seldom

systematic

Increasing profits will most likely occur at which stage of the

PLC?
decline

maturity

product development

growth

introduction
Which of the following cannot be described by the PLC concept?
product class

product form

brand

product image

styles

The PLC concept can be applied by marketers as a useful

framework for describing how ________.
product ideas are developed

products and markets work

to forecast product performance

concept testing is conducted

to develop marketing strategies

In the ________ stage, the firm faces a trade-off between high

market share and high current profit.
maturity

introduction

decline

commercialization

growth
In which stage of the PLC will promotional expenditures be high
in an attempt to react to increasing competition?
introduction

product development

growth

decline

maturity

Which stage in the PLC normally lasts longer and poses strong
challenges to the marketing managers?
phase-in

decline

maturity

growth

introduction

Most products in the marketplace are in the ________ stage of

the product life cycle.
growth

development

introduction

decline

maturity
Sales decline in the decline stage of the PLC because of
technological advances, increased competition, and ________.
shifts in the economy

shifts in consumer tastes and preferences

marketing mix modifications

new market pioneers

shifts in unemployment

A manufacturer with a product in the decline stage of the product

life cycle might decide to ________ if it has reason to hope that
competitors will leave the industry.
maintain the product without change

search for replacements

drop the product

harvest the product

delay planning

The advantages of standardizing an international product include

all of the following except ________.
the development of a consistent image

the adaptation of products to different markets

decreased manufacturing costs

lower marketing costs

lower product design costs

Schmidt Steel Corporation lacks the confidence, capital, and
capacity to launch its new steel product into full national or
international distribution. Even though test market results look
promising, what will be management's next step?
develop a planned market rollout over time

seek the help of a nationally known consultant

develop a prototype

retest the product in additional markets

secure a loan to provide confidence, capital, and capacity