Marketing Strategy

What is the purpose of idea screening in the new product development process?

• To generate new product ideas

• To assess costs and potential profits

• To test the product in the market

• To determine customer reaction

What is the potential benefit of using a test market for a new product?

• To assess likely sales and potential profits

• To reduce unit costs

• To create a forward-looking image

• To test customer reaction

What is the purpose of the Delphi method in sales forecasting?

• To provide long-term qualitative forecasting

• To make forecasts based on trends

• To give predictions of future sales

• To establish causing relationships

What is the potential limitation of research and development (R&D) for new products and processes?

• It is expensive and may take years for new products to lead to higher profits

• It is guaranteed to lead to successful new developments

• It creates a progressive and forward-looking image for a business

• It develops new production processes to reduce unit costs

What is the key formula for calculating promotional elasticity demand?

• % change in demand / % change in promotion spending

• % change in demand + % change in promotion spending

• % change in demand - % change in promotion spending

• % change in demand * % change in promotion spending

What does a negative result in income elasticity of demand indicate?

• The product is inferior

• The product is a luxury good

• The product is a substitute

• The product is a complement

What is the purpose of the DAGMAR model in marketing?

• To test the products in terms of its durability and function

• To establish goals for a promotion campaign

• To explain the successive stages a customer passes through in buying a product

• To determine whether a promotion campaign has been successful

What is the potential benefit of estimating the price elasticity of demand for a market plan?

• To create a forward-looking image

• To measure the relative impact on demand for a product following a change in a variable

• To assess costs and potential profits

• To test customer reaction

What is the key stage in the new product development process that involves assessing costs, likely sales, and potential profits?

• Concept development and testing

• Product testing

• Business analysis

• Idea screening

What is the potential benefit of using the moving average method in sales forecasting?

• To establish causing relationships

• To give predictions of future sales

• To allow forecasts based on trends

• To reduce risk of decision making