Chapter 12 – Developing New Products Marketing 6th
Answers to End of Chapter Learning Aids
Marketing Digitally
1 Go to http://www.quirky.com/ and read about how Quirky develops new products. How is this
different than traditional new-product development?
Quirky is a crowd-sourcing invention company that builds, markets, and sells devices that have been
proposed and worked on by its hundreds of thousands of members. The company uses social
1 The automotive industry is constantly adding new and different products and technologies to
their cars – both above and under the hood. Conduct an Internet or library database search
and discuss two innovative new automotive technologies that are changing the industry.
Students must fit innovations developed for the automobile industry to the product life cycle model.
Introduction: Multistage convertible rooftop, which very few vehicles offer.
Growth: Hybrid engines for better fuel economy; the demand for cars with this technology has
Marketing Applications
1 Some people think that a product should be considered “new” only if it is completely new to
the market and has never existed before. Describe or give examples of other types of new
products.
Students must challenge the mindset of “new means completely new” and think about how marketers
perceive the concept of product newness. Therefore, they might consider introducing an existing product
2 Android Wear is a new category of wearable computing devices that link to Android
smartphones. How quickly do you think this product will diffuse among the U.S. population?
Describe the types of people that you expect will be in each of the diffusion of innovation
stages.
The new wearables have some impediments to overcome to be successful. Some experts do not see
them as “radical” innovations. They may be seen as “incremental” innovations that only improve current
technologies.
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Chapter 12 – Developing New Products Marketing 6th
3 What are the advantages and disadvantages for companies that are the first to introduce
products that create new markets?
This question focuses on the idea of the first-mover advantage and asks students to consider whether it
truly is an advantage to be first in the market with a new product or service.
4 Identify and describe the ways that companies generate new product ideas. Which of these
ways involve the customer? How can firms assess the value of the ideas that customers
generate?
Rather than considering the idea-generation process solely from an internal company perspective,
students should understand that good ideas can come from many sources. After an idea gets generated,
the company must determine its potential value by progressing to the next stage of the product
development process: concept testing.
5 Describe an example of a new product or service that is targeted at the college-student
market. Using the concept-testing discussion in the chapter, describe how you would conduct
a concept test for this product or service.
Picking up where the previous question left off, this exercise challenges students to consider how they
might perform concept testing of a product aimed at them. In particular, they will need to examine how to
formulate the concept statement, conduct exploratory and conclusive research about the concept, and
determine whether college-aged consumers might purchase the concept product if it were available.
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Chapter 12 – Developing New Products Marketing 6th
6 Using the same product or service you used in question 5, use the diffusion of innovation
theory, to assess how quickly it will diffuse based on its relative advantage, compatibility,
observability, complexity, and trialability.
The Toyota Yaris is an inexpensive, entry-level subcompact automobile. The Yaris’ predecessor was the
oddly proportioned Echo. All of the following will lead to quicker diffusion of the auto:
7 How does the Internet help companies gain customer input on their existing and new
products?
Listening to the customer in both B2B and B2C markets is essential for successful idea generation. The
8 Nature’s Path is about to introduce a type of granola and is in the market-testing phase of the
new product-development process. Describe two ways that Nature’s Path might conduct initial
market testing prior to launching this new product.
Firms conduct premarket tests before they bring a product or service to market to determine how many
9 In what stage of the product life cycle is a new model of a PlayStation 4 video game console?
Is Sony’s marketing strategy—its four Ps—consistent with the product’s stage in its life cycle?
Explain.
A new model of the PlayStation video game is in the introduction stage of the product life cycle, because
only innovators purchase it in the beginning, before it gains wider acceptance. Sony’s marketing strategy
10 You have recently been hired by a cosmetics company in the product-development group. The
firm’s brand is a top-selling, high-end line of cosmetics. The head of the development team
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Chapter 12 – Developing New Products Marketing 6th
has just presented research that shows that “tween” girls, aged 11 to 15, are very interested in
cosmetics and have the money to spend. The decision is made to create a line of tween
cosmetics based on the existing adult line. As the product moves through development you
begin to notice that the team seems to lean toward a very edgy and sexual theme for the line,
including naming the various lines “envy,” “desire,” “prowess,” and “fatal attraction.” You
begin to wonder, is this concept too much for girls in the targeted age group?
Student answers to this question may vary. This question asks students to think about the ethical
Quiz Yourself
1 In the United States, most consumer packaged goods found in grocery and discount stores are
already in the _____ stage, which is characterized by the adoption of the product by the late majority
and intense competition for market share among firms.
a. introduction
b. growth
c. maturity
d. first
e. decline
11 Although they enjoy novelty and are considered to be opinion leaders, _____ are not the first to
purchase new product innovations.
a. laggards
b. innovators
c. early adopters
d. the late majority
e. the early majority
Chapter Case Study: Is the Glass Half Full? The Launch, Death Struggles, and
Potential Reemergence of Google Glass
1 What kind of testing did Google perform for Google Glass? What other methods might it have
used?
From the text: “The initial rollout of Google Glass was limited, purposefully, by a couple of factors. First,
Google set the price very high, at around $1,500. That meant that only the most dedicated tech geeks,
12 At what stage of its product life cycle is Google Glass today?
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Chapter 12 – Developing New Products Marketing 6th
13 What can later entrants into the wearable technology market learn from Google’s new product
introduction?
Some of Google’s early insights:
Early comments involved the look of the device and the alternative uses it could support.
Additional Teaching Tips
This chapter focuses on the ways that a firm can create value through innovation. Students learn about
the product life cycle, the importance of product differentiation, as well as concepts unique to new product
development and launch.
The way to truly understand new product development is to have students work in teams to create a
new product. Students can work in teams of 5 to brainstorm and come up with ideas of new products.
Instructors need to put some boundaries on the assignment such as it can’t be too far-fetched (such as
self-driving automobiles) and the product should have enough differentiation (not just an added
ingredient to an energy bar). If students get stumped, suggest that they think of a current product and
then think of a way to make it better or to solve a problem (such as unbreakable holiday lights or lights
where the bulb never burns out). Then have students make an illustration of the product and address the
phases of the new product development. Students can present their findings to the class.
Another way to get students involved is to have them research organizations to discover how new
products were made. 3M Post-its were made by mistake when a glue did not bond. An employee used it
to mark pages in a hymnal so he wouldn’t lose the page and it could be easily removed without damage.
Have students share their findings with the class. Online tip: This same assignment can take the form of
a posting in which students present their findings via the discussion board in the online forum. Students
can then respond to other learners by commenting on their “new product” and making suggestions.
The key to student comprehension of new product design is to involve the student in new product
development to use their critical thinking skills to think about each of the phases of new product
development as well as the elements of the marketing mix to bring the product to market. Instructors may
want to assign new product development as part of a Marketing Plan where students need to develop a
new product and incorporate all elements of the marketing plan for a cumulative course project. Of
course, new product development phases would be addressed as part of the plan.
Connect Activities
Activity Type Learning Objectives 12-
01 02 03 04
Stages of the Product Life Cycle Click & Drag X
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Chapter 12 – Developing New Products Marketing 6th
Stages of the Product Life Cycle
Activity Type: Click & Drag
Learning Objectives: 12-04
Difficulty: Medium
Activity Summary: The student matches market characteristics and consumer profiles to the stages of
the product life cycle.
Activity
Introduction: During each stage of a product’s life cycle, the types and levels of sales, profits, and
Concept Review: The product life cycle defines the stages that new products move through as they
Follow-Up Activity
Internet research challenge: Ask students to investigate the sales growth pattern in the tablet market,
The Product Development Process
Activity Type: Click & Drag
Learning Objectives: 12-03
Difficulty: Medium
Activity Summary: Students apply the product development process to the description of the
development of a hypothetical technology product.
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Chapter 12 – Developing New Products Marketing 6th
Activity
Introduction: In this example, a hypothetical computer accessories company called ElectroCompt
creates a product to enhance users’ experience with the Apple iPod. The SuperChargeIn is a slim
Concept Review: New goods and services keep current customers coming back for more and draw new
customers into the market. Broad product assortments also help to diversify the firm’s portfolio, thus
Students are asked to match a set of product development activities to the stages of the product
development process.
Sara Lee: Developing a New Product
Activity Type: Video Case
Learning Objectives: 12-01, 12-03, 12-04
Difficulty: Medium
Activity Summary: This case discusses the product development process for a new type of bread with
some whole grain but the taste and appearance of white bread. After the video ends, students are
asked questions about the video and related course concepts.
Activity
Introduction: The following video features the Sara Lee brand, which is known around the world. One of
Concept Review: New goods and services keep current customers coming back for more and draw new
Video: The video is presented to the student below the introductory information. The video plays
Follow-Up Activities
For an interesting follow-up to this case, assign this article to be read outside of class, or discuss it in
class:
http://www.cspinet.org/new/200807212.html
Sara Lee was threatened with a lawsuit following the introduction of the bread discussed in the video
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Chapter 12 – Developing New Products Marketing 6th
You Be the Judge: Click Here, Be Sued
Activity Type: Video Case
Learning Objectives: 12-01, 12-02, 12-04
Difficulty: Medium
Activity Summary: An excerpt from a fictionalized trial dealing with an allegation of misappropriation of
an innovative idea. After the video ends, students are asked questions about the video and related
course concepts.
Activity
Introduction: In this You Be the Judge business law case, Ms. Garner argues that she developed an
Concept Review: Innovation is the process by which ideas are transformed into new goods and services
that will help firms grow. Without innovation, firms would have only two choices: to continue to market
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
Follow-Up Activity
Class discussion: This fictional trial video is incomplete in that an infringement lawsuit would require lots
Diffusion of Innovation
Activity Type: Click & Drag
Learning Objectives: 12-02
Difficulty: Medium
Activity Summary: The student identifies products being adopted by each of the adopter groups
discussed in diffusion of innovation theory.
Activity
Introduction: There are certain products that can be associated with users in each stage of the diffusion
Concept Review: The process by which the use of an innovation—whether a product, a service, or a
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Chapter 12 – Developing New Products Marketing 6th
Students are asked to identify the adopter group most likely to adopt particular products described in the
activity.
Follow-Up Activity
In small groups, ask students to assess a product that has diffused very quickly, and one that is diffusing
New Product Development at Red Mango
Activity Type: Video Case
Learning Objectives: 12-01, 12-03
Difficulty: Medium
Activity Summary: This video explores how new product development happens at Red Mango, a frozen
yogurt chain. After the video ends, students are asked questions about the video and related course
concepts.
Activity
Introduction: Founded in 2007 by Dan Kim, Red Mango originally sold frozen yogurt. Its first shop was in
Los Angeles. Success with its frozen yogurt resulted in rapid expansion for the firm. There are
currently more than 200 Red Mango locations in 28 states and two Central American countries. Since
Concept Review: It is almost a requirement today that firms innovate and develop new products.
Customer needs change, markets become saturated, and fashion trends evolve. For these and other
reasons, growth would be very difficult for companies without innovation resulting in new products.
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
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Chapter 12 – Developing New Products Marketing 6th
The Launch, Death, and Potential Reemergence of Google Glass
Activity Type: Case Analysis
Learning Objectives: 12-01, 12-02, 12-04
Difficulty: Medium
Activity Summary: The short case describes the history of Google Glass, reflecting on what worked,
what didn’t, and what might happen in the future.
Activity
Introduction: Google Glass, Google’s first entry into the wearable technology market, had a limited and
unexpectedly brief introduction to the market. This activity is important because new product
ISeeIt Video Case: New Product Development
Activity Type: Video Case
Learning Objectives: 12-03
Difficulty: Easy
Activity Summary: This video case considers the stages of the new product development process for a
potential flavor additive for a bottled water company.
Activity
Introduction: To develop new products and services efficiently, organizations go through a process to
ensure that their products are ready for market. This process is meant to evaluate interest in a
product and helps to increase the chances of success within the marketplace. Hope Springs Water
Video: The video is presented to the student below the introductory information. The video plays
embedded on the page, after which questions are presented.
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