BMI 3C1 Ch. 5 Review Student Copy PDF

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BMI 3C1 Ch. 5 Review True/False Indicate whether the statement is true or false. ____

1. Marketing research reveals what consumers want and identifies business opportunities.

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2. When developing new products, the production department is interested in answering the question, “Can we sell it?”

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3. When developing new products, the marketing department is interested in answering the question, “Can we produce it?”

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4. For many businesses, product development is critical both at the outset and throughout the life of the business.

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5. Product development involves many departments, but the two departments that must work together for success are marketing and accounting.

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6. A feasibility study is designed to find out if a business opportunity is possible, practical, and viable.

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7. Feasibility studies are recommended only for large businesses because they are costly, time- consuming, and formal.

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8. Inventions are new devices, methods, or processes developed from study and experimentation.

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9. Innovations are new uses and/or new applications of existing products or services.

____ 10. There are many more inventions than innovations in Canada. ____ 11. Because the Canadian market is so competitive, it is credited with many innovations. ____ 12. Marketers can use innovations and inventions to create new products and, in the process, generate profits for businesses. ____ 13. An inventor is commonly also an innovator of a product or service in the marketplace. ____ 14. Inventors are much more likely to be marketers than innovators are, because their motivation for improving their product is profit driven. ____ 15. When a new product is developed, idea screening precedes idea generation. ____ 16. At the concept development stage, a prototype of a product’s appearance and operation is created. ____ 17. The product design stage of product development takes into account the preferences of the primary market. ____ 18. If test marketing results are negative, the company will launch the product.

____ 19. The stage in which a product enters the product life cycle is called market entry. ____ 20. Product development provides new or different value for a product. ____ 21. Utility that provides consumers with something that they didn’t have before does not impact a value equation. ____ 22. Information utility is the relationship that exists between a product or service’s form and its function. ____ 23. The expression “function follows form” means that what the product is meant to do will often dictate what it looks like. ____ 24. Form utility consists of many components, which can include scent, colour, design, and material. ____ 25. Marketers add place utility to a product when they make it possible for the consumer to purchase the product. ____ 26. Time utility can make a product more valuable, especially if marketers make seasonal products available at appropriate times. ____ 27. The most dramatic method of adding possession utility to a product or service is to raise the price. ____ 28. The idea that consumers and competitors should not be considered when important business decisions are made is called the marketing concept. ____ 29. Product mapping is a process of gathering similar products together and then determining the common characteristics among the products in each group. ____ 30. A product development team can use a product map to determine what product to make and what features to incorporate into it. ____ 31. A market opportunity analysis consists of the overall market as well as direct and indirect competition. ____ 32. Indirect competition is a situation where practically identical products compete for a share of the market. ____ 33. If marketers want to clearly define market potential, they can use both market share data and a marketing opportunity analysis. ____ 34. A feature–benefit analysis connects each feature to the utility and the benefit it adds to the product. ____ 35. A cost–benefit analysis determines the features that can be included in a product without affecting its profitability and saleability. Completion Complete each statement. 36. Marketing research reveals what ___________________ want and points the way toward business opportunities.

37. A study that determines if any business opportunity is possible, practical, or viable is called a(n) _________________ study. 38. Product ____________________ starts with an idea that is based on solving a problem for the consumer. 39. Businesses use __________________ to create original solutions to meet consumer needs. 40. Businesses can also use new applications of existing products or services, called __________________, to meet consumer needs. 41. ____________________ are often marketers as well, because their motivation for improving a product is often profit-based. 42. The first stage of bringing a product to market is called _________________________. 43. In the concept stage of product development, a(n) __________________ may be designed to help show what the product might look like and how it might operate. 44. Researching consumer acceptance of a new product in an actual setting is called _________________________. 45.

A feature added to a product that makes it more valuable on the market is called a(n) __________________.

46. The relationship between a product or service’s form and its function is called _________________ utility. 47. The free 24-hour 800 number for service on a product is called a(n) ________________ utility. 48. When marketers strive to make sure that a product is sold everywhere a consumer would want it to be, they are adding _________________ utility to the product. 49. A business adds __________________ utility to a product or service by offering a discount or special terms of sale, to make it easier for consumers to buy. 50. The _________________ concept is the idea that consumers and competitors should be considered in every important business decision. 51. _______________________________ is a process that marketers use to determine common characteristics among product groupings. 52. A marketing opportunity analysis is also called a(n) ________________ analysis because it defines the opportunities or market situations for a specific brand. 53. All competitive brands that compete for a share of the same market are called ________________ competition. 54. A(n) _________________________ analysis connects each feature to the utility and the benefit that it adds to the product.

55. A(n) _________________________ analysis compares the estimated costs of an action with the estimated benefits. Matching Match each of the following terms or expressions with the most accurate definition or description: a. feasibility study f. test marketing b. invention g. place utility c. innovation h. time utility d. idea generation i. feature–benefit analysis e. idea screening j. cost–benefit analysis

____ 56. The brainstorming stage of developing a product. ____ 57. There are many more of these than there are inventions. ____ 58. This analysis identifies elements that consumers want in a product or service. ____ 59. The stage of product development where consumers check out products. ____ 60. This analysis determines if a benefit should be added to a product design. ____ 61. A process that will help determine if a business opportunity is practical. ____ 62. Convenience is a big factor in making this utility work for marketers. ____ 63. In this stage of product development, ideas are sifted and sorted. ____ 64. Effective distribution network allows a marketer to add this utility to products. ____ 65. A new device, method, or process developed from study and experimentation...