Fewer than 10 percent of all new products are truly innovative and new to the world.
Answer: TRUE
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Marketing Management Chap 23
- What practices guide innovation at W. L. Gore?
- Shorter product life cycles are common in industries characterized by low level of competition.
- Identify the major reasons why new product failures occur. The following are some of the possible reasons for the failure of new products:
- Companies that fail to develop new products leave their existing offerings vulnerable to increased domestic and foreign competition.
- Most established companies focus on incremental innovation rather than radical innovation.
- High-tech firms that function in a market with high technological uncertainty, high market uncertainty, and high investment costs are not likely to seek radical innovation.
- Companies typically must create a strong R&D and marketing partnership to pull off a radical innovation.
- Organic growth refers to increasing the profitability of the organization by increasing employee productivity.
- After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?
- Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product was a failure. Which of the following is the most likely reason for the product's failure in this case?
- Which of the following strategies for new-product development incorporates buyers' preferences in the final design of the product?
- It has been observed that most new products have shorter product life cycles. What is the reason for this?
- What is incremental innovation? Give an example of incremental innovation.
- I-ball, a cell phone manufacturer introduces a cell phone targeted at customers ages 70 and above. It has features such as loud volume, large keys, and so forth. How do you classify this product innovation? What could be a possible disadvantage of this product?
- What does the term organic growth mean?
- What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the necessary conditions to create a radically innovative product?
- Jill, a Product Manager for Nike, is responsible for evaluating the viability of a radically new product. How should she estimate demand?
- Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it uses ________.
- Most established companies focus on ________ innovation when they aim to enter new markets by tweaking existing products, or they want to stay one step ahead in the market by using variations on a core product.
- Which of the following is the best example of a new-to-the-world product?
- Most new-product activities are devoted to ________.
- Which of the following firms is most likely to seek radical innovation?
- New-to-the-world products are ________.
- Which of the following is most closely related with the organic growth of an organization?