978-1337407588 Chapter 11 Solution Manual Part 2

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Chapter 11: Developing and Managing Products

Case Assignment: Tesla Motors

Tesla Motors was founded with innovation in mind. Launched in 2003 by a group of engineers in

The Tesla Roadster was launched in 2008 and can travel 245 miles per charge of its

lithium ion battery. There are now more than 2,400 Roadsters being driven in more than 30

Next came the Model X, which Tesla began delivering in 2015, and the new Model 3 will

Improvements to battery life and safety features weren’t the only upgrades Tesla had

quietly been putting together. They created a roar in the automobile industry when they

This hardware includes eight surround cameras providing 360-degree visibility around

Tesla’s move was unprecedented compared to that of other car companies, but not as

much for them. While Tesla will be creating cars with the hardware needed for self-driving

Chapter 11: Developing and Managing Products

Tesla still has to complete millions of miles of real-world testing before the software can

Tesla must also achieve regulatory approvals of full self-driving cars before they can

Korosec, “4 Reasons Why Tesla’s Autonomous Driving Announcement Matters,” Fortune,

October 20, 2016, accessed October 23, 2016,

Musk: You’ll Be Able to Summer Your Driverless Tesla from Cross-Country,” CNN Money,

October 20, 2016, accessed October 23, 2016,

Cars Being Produced Now Have Full Self-Driving Hardware,” Tesla, October 10, 2016, accessed

October 23, 2016,

TRUE/FALSE

1. Telsa’s new products have been successful, in part, because they have a well-defined new

product strategy at their core and are driven by the corporate objectives and strategies of using

electricity over gasoline when designing automobiles.

PTS: 1 OBJ: LO: 11-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. A new-product strategy is a plan that links the new-product development process with the

objectives of the marketing department, the business unit, and the corporation.

Chapter 11: Developing and Managing Products

PTS: 1 OBJ: LO: 11-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. The business analysis to determine if Tesla should equip their cars with the self-driving

hardware before the software was complete would have been a simple process.

PTS: 1 OBJ: LO: 11-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Tesla employed simultaneous product development by having their hardware and their

software design teams work together on the autonomous automobile initiative.

PTS: 1 OBJ: LO: 11-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Tesla will use test marketing to teach the self-driving software how to appropriately respond in

different driving situations.

PTS: 1 OBJ: LO: 11-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

MULTIPLE CHOICE

1. New products are important because they do all of the following EXCEPT:

a. sustain growth

b. increase revenues and profits

c. extend resources

d. replace obsolete items

PTS: 1 OBJ: LO: 11-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

Chapter 11: Developing and Managing Products

2. The Tesla Model 3 is what category of new product?

a. improvement/revision to existing product

b. new-to-the-world product

c. new product line

d. repositioned product

e. lower-priced product

PTS: 1 OBJ: LO: 11-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. New product ideas can come from all of the following sources EXCEPT:

a. employees

b. customers

c. distributors

d. competitors

e. New product ideas can come from all of these.

PTS: 1 OBJ: LO: 11-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. The addition of the self-driving hardware to Tesla cars in considered a(n) __________.

a. diffusion

b. experiment

c. commercialization

d. innovation

PTS: 1 OBJ: LO: 11-5 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Which of the following characteristics will NOT have an impact on decisions for early

adopters of the Tesla Model 3?

a. compatibility

b. observability

c. complexity

d. relative advantage

Chapter 11: Developing and Managing Products

PTS: 1 OBJ: LO: 11-5 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

Great Ideas for Teaching Chapter 11

James S. Cleveland, Sage College of Albany

Discussion Board Topics to Encourage Participation

Discussion board questions provided to students to encourage them to engage in thinking and

writing about the content of the Principles of Marketing course usually take the form of a

provocative statement to which students are asked to respond. An example of this would be “All

PR is good PR.”

Discussion topics such as this one are abstract and often require that the instructor provide an

initial reply to show students what is expected of them in their own replies. For students with

limited work experience, this approach may be quite appropriate. For adult students with

extensive experience as employees and consumers, however, the abstract nature of such topics

can be frustrating.

I have developed, therefore, a series of discussion board questions to use with experienced, adult

students. These questions are designed to encourage them to use their experiences as employees

and consumers as doorways to better understand the course material and to make their own

responses more interesting to themselves and to the other students in the class who will read and

comment on them.

Each question has three parts.

1. First, there is a sentence or two from the students’ textbooks introducing the topic. By

using the text author’s words, students are enabled to locate relevant material in the text

more easily, the text content is reinforced, and confusion resulting from the use of variant

terms or expressions is minimized.

2. Second, there is a reference to text pages the students should review before proceeding.

Since the goal of the exercise is for students to apply the course content to their own

experiences, reviewing the content beforehand is important.

3. Third, there is a request for the students to think about or remember some specific situation

in their experiences to which they can apply the text material, and a question or questions

for them to address in their replies.

Here are additional similar discussion board questions developed for Chapter 11 of MKTG11.

Each is written to fit the same text cited above but could easily be rewritten and revised to fit

Chapter 11: Developing and Managing Products

another text.

Series A

1. An innovation is a product perceived as new by a potential adopter. Diffusion is the process

by which the adoption of an innovation spreads. There are five categories of adopters:

innovators, early adopters, early majority, late majority, and laggards. The category under

which you would fall depends on the type of product involved.

2. Review how new products spread in section 11-4a of your text.

3. Then choose a product that you have recently adopted. Which category of adopter are you

for that product? Do you fall into a different category for a different type of product? Give

an example.

Series B

1. The PLC is a biological metaphor that traces the stages of a product’s acceptance, from

its introduction (birth) to its decline (death).

2. Review the stages of the product life cycle in section 11-5 of your text.

3. Suggest an example of a product in each stage of the product life cycle. Explain your

examples. Which of these products do you own? What does this suggest about the type of

adopter you are?

Deborah Reed Scarfino, William Jewell College

A Project to Fail

I have used the project “Create a Product, Good, or Service That Will Fail” to instill or recharge

creativity in my students.

We spend the first half of the semester understanding the concepts, working on case studies, and

analyzing material to make recommendations to improve the existing situation or resolve

problems that pose challenges. There are no real textbook answers to some of these cases, and

In the second half of the course, I offer the challenge to design a product, good, or service idea

that will fail in the marketplace. The class evaluates the ideas after oral presentations. Those that

Chapter 11: Developing and Managing Products

Students who learn that failure is a valuable learning tool and that many great ideas are born

from the experience of failure are well on the road to success. We suffer from stagnant

Barbara Ross Wooldridge, the University of Texas at Tyler

Packing the Powerful P! The Impact Packaging Has on How We “See” Products: A Taste

Test Experiment

While most students in an introductory marketing course can easily visualize the role packaging

plays in protecting and facilitating the storage of products, it is not as clear to them the powerful

Exercise Overview

Three products are used in this taste test: KitKat candy bars, Sweet Escapes, and Keebler Fudge

Sticks. The items should be cut into bite-size pieces. Each product is placed in separate bags

labeled “A,” “B,” and “C.” Students are divided into groups of three to five, depending on the

class size. The groups are given taste test sheets to fill out as a team. These sheets include the

The Results

Chapter 11: Developing and Managing Products

What the students discover is that although the three products are all basically chocolate-covered

wafers, they are viewed very differently and sell for very different prices based on packaging.

Benefits to the Student

The taste test allows students to immediately begin to understand the relevance of packaging in

determining how one perceives a product. It also demonstrates how packaging interacts with the

Conclusion

This exercise, depending on class size, takes some time to create the tasting samples but does not

Michelle Demoss, Stetson University

Did You Mean to Throw That Away?

Proponents of marketing state that a market-driven economy allows for more choices, better

products, and lower prices. Critics claim that marketing promotes materialism and a throw-away

This exercise encourages students to examine the impact of their consumption decisions on the

environment around them. Students are asked to become aware of decisions concerning how they

dispose of marketing-related items and how they make these decisions. Specifically, students are

asked to take the steps listed below.

1. Write down everything they throw away in one week. (Note: The typical American

generates 4.39 pounds of garbage a day.)

Chapter 11: Developing and Managing Products

Discussion should center on any shift in students’ perspectives concerning the impact of their