Vocabulary Worksheet

1) During which product development step do companies consider a product’s potential sales, costs, and production requirements?

A. introducing the product B. evaluating customer acceptance

C. testing the product D. developing a business proposal

2) A specific model, brand, or size of a product within a product line.

A. Product item B. Product Mix

C. Decline D. Maturity

3) All the different products that a company makes or sells.

A. Product item B. Product Mix

C. Decline D. Maturity

4) The number of product items offered within each product line.

A. Maturity B. Growth

C. Introduction D. Depth

5) Any Good or Service is called a __________.

A. Test Marketing B. Product

C. Line Extension D. Product Positioning

6) Ready Writers has just introduced a ballpoint pen that is very similar to older pen models except that the new pen’s casing comes in a variety of fashion colors. What is this an example of?

A. Test Marketing B. Product

C. Line Extension D. Product Modification

7) The number of different product lines a business sells

A. prototype B. product width

C. product item D. regionalize

8) A business's group of closely related products

A. product line B. modify

C. plan-o-gram D. obsolete

9) To change slightly or partially

A. product line B. modify

C. plan-o-gram D. obsolete

10) Includes decisions about all features and services needed to sell a product

A. plan-o-gram B. obsolete

C. product planning D. screening ideas

11) A time when companies match their objectives against the idea for a new product

A. plan-o-gram B. obsolete

C. product planning D. screening ideas

12) What is a branding strategy that uses an existing brand name for an improved or new product in the product line?

A. Brand Extension B. Product width

C. Product item D. Regionalize

Vocabulary Worksheet

Label each statement as introduction, growth, maturity, or decline.

maturity 1. During this phase of the product life cycle, sales level off or slow down.

decline 2. Discounting the product is typical for products in this stage of the product life cycle.

growth 3. In this stage, company efforts are focused on promotion.

introduction 4. This stage of the product life cycle is usually the least profitable.

growth 5. During this stage, advertising is focused on consumer satisfaction rather that new product benefits.

maturity 6. In this stage of the product life cycle, most of the target market owns the product.

decline 7. Profits reach a point where they are smaller than costs in this stage of the product life cycle.

maturity 8. Advertising costs increase and decisions need to be made to improve the product to gain additional sales.

decline 9. Selling or licensing the product often occurs in this stage.

maturity 10. Competition is likely to offer new products in order to compete with products in this stage of the life cycle.

maturity 11. companies spend more of their advertising dollar fighting off the competition in this stage of the product life cycle.

decline 12. Management needs to make decisions about how long to continue supporting a product in this stage of the product life cycle.

decline 13. Modernizing or altering a product sometimes occurs at this stage.

introduction 14. The major goal at this stage is to draw attention to the product.

maturity 15. Much of the target market knows about and buys the product.

introduction 16. Companies work on building sales by increasing product awareness in this stage of the product life cycle.

growth 17. At this stage, the product in enjoying success as demonstrated by rising sales and profits.

Review Questions

Product Planning / Sustaining Product Sales

1. If a company introduces a phone that is very similar in function as its current phones but it comes in a variety of fashion colors it is likely that the phone will be priced:

a. 40% higher c. the same

b. lower d. 10% higher

2. Company A is making decisions about those features that are needed to sell its products, services or ideas. It is considering product packaging, labeling, branding, and the services it will provide. What is company A in the process of doing?

a. foreclosing c. product planning

b. merging d. management structuring

3. All of the different products that a company makes or sells are called it's:

a. product mix c. product modifications

b. product sales d. product leases

4. A group of closely related products manufactured and/or sold by a business is called a:

a. product mix c. product modification

b. product line d. product item

5. A specific model, brand, or size of a product within a product line is called:

a. product mix c. product modification

b. product line d. product item

6. A company's product width is determined by the company's number of product:

a. lines c. items

b. mix d. modifications

7. A company's product depth is determined by the number of product________________ offered within each product line.

a. lines c. items

b. mix d. modifications

8. When developing new products there are seven steps a company goes through in the development. During which step would the company consider a product's potential sales, costs, and production requirements?

a. introduction of product c. testing the product

b. evaluating consumer acceptance d. developing a business proposal

9. The step in new product development when companies match the new idea against company objectives is called:

a. generating ideas c. testing product

b. screening ideas d. developing a business proposal

10. Silicon skin face cream is new and very popular. The advertising for this product focuses on the customer satisfaction that the cream provides. The competition is frantically working to develop something that can compete with the cream. Which stage of the product life cycle is the cream in?

a. introduction c. growth

b. maturity d. decline

11. When a company discounts a product and uses phrases like "compare and save," the product is likely to be in what stage of the life cycle?

a. introduction c. growth

b. maturity d. decline

12. When a product's sales are restricted to one geographical area, the company is managing a product's decline by which management technique?

a. sell or license c. discounting

b. regionalize d. modernize