MKT 301 Exam 3 questions well
answered to pass
1. What is the first filter in the new product development process? - correct answer ✔✔a. Idea
Screening
i. Too expensive
ii. Not in area of expertise
iii. Idea has been done already
2. At what stage(s) do you eliminate ideas for new products? - correct answer ✔✔a. Start at
Idea Screening, then continue throughout each step
3. What happens in the Marketing Strategy Development stage? - correct answer ✔✔a. Develop
the marketing plan
i. Market segmentation
ii. Targeting
iii. Positioning
iv. Price, Product, Promotion, Place
4. What happens in the Business Analysis stage? - correct answer ✔✔a. Determine profitability
of the product and when it will be profitable
i. Create a business plan
b. New products in a firm are competing w/ each other
c. (Minimum profit requirement = reason for elimination)
, 5. What is concept testing? - correct answer ✔✔a. Stage in New Product Development, where
an idea is tested amongst a focus group
6. At what stage would you build the prototype of your product? - correct answer ✔✔a. Product
Development stage
7. What is market testing? When would you not use it? - correct answer ✔✔a. Market testing:
small scale launch of the product (implements 4 Ps)
b. When the product is an improvement of a successful product
c. There are time constraints
8. What are the characteristics of a good test market? - correct answer ✔✔a) Test market must
be representative (test supermarket should be a small example of what the big market is)
b) Should be somewhat isolated --> b/c you don't want your competition to learn about it. Also
to be separate from other markets, so the advertisements can be directed toward your target
MKT
c) Should be measurable
10. How do profits look in the introductory stage of the PLC? What are some of the reasons why
this is so? - correct answer ✔✔a. Profits are negative
i. Firm must cover initial start up cost
ii. Production is not at economy of scale
iii. Large cost on marketing and advertisement expenses
11. What 2 pricing strategies could you use in the introductory stage of the PLC? - correct
answer ✔✔a. Price skimming (High price = high profit)
i. High early profits, then lowers price later
b. Penetration Pricing (Low price = large market share)
i. Grabs market shares early
answered to pass
1. What is the first filter in the new product development process? - correct answer ✔✔a. Idea
Screening
i. Too expensive
ii. Not in area of expertise
iii. Idea has been done already
2. At what stage(s) do you eliminate ideas for new products? - correct answer ✔✔a. Start at
Idea Screening, then continue throughout each step
3. What happens in the Marketing Strategy Development stage? - correct answer ✔✔a. Develop
the marketing plan
i. Market segmentation
ii. Targeting
iii. Positioning
iv. Price, Product, Promotion, Place
4. What happens in the Business Analysis stage? - correct answer ✔✔a. Determine profitability
of the product and when it will be profitable
i. Create a business plan
b. New products in a firm are competing w/ each other
c. (Minimum profit requirement = reason for elimination)
, 5. What is concept testing? - correct answer ✔✔a. Stage in New Product Development, where
an idea is tested amongst a focus group
6. At what stage would you build the prototype of your product? - correct answer ✔✔a. Product
Development stage
7. What is market testing? When would you not use it? - correct answer ✔✔a. Market testing:
small scale launch of the product (implements 4 Ps)
b. When the product is an improvement of a successful product
c. There are time constraints
8. What are the characteristics of a good test market? - correct answer ✔✔a) Test market must
be representative (test supermarket should be a small example of what the big market is)
b) Should be somewhat isolated --> b/c you don't want your competition to learn about it. Also
to be separate from other markets, so the advertisements can be directed toward your target
MKT
c) Should be measurable
10. How do profits look in the introductory stage of the PLC? What are some of the reasons why
this is so? - correct answer ✔✔a. Profits are negative
i. Firm must cover initial start up cost
ii. Production is not at economy of scale
iii. Large cost on marketing and advertisement expenses
11. What 2 pricing strategies could you use in the introductory stage of the PLC? - correct
answer ✔✔a. Price skimming (High price = high profit)
i. High early profits, then lowers price later
b. Penetration Pricing (Low price = large market share)
i. Grabs market shares early
