Question

________ is the stage in which a prototype is developed and a marketing strategy is outlined.

	A.	Idea screening
	B.	Business analysis
	C.	Development
	D.	Test marketing
	E.	Commercialization

Despite the amount of time and money spent on developing and testing new products, a large proportion of new product introductions fail because

	A.	they simply do not offer any discernible benefit compared to existing product.
	B.	there is a poor match between product features and customer desires
	C.	there is an overestimation of the market size
	D.	the price is too high or low
	E.	all of the above

Often small ventures are skeptical about entering the global market because it:

	A.	limits access to advanced technologies in less developed countries.
	B.	slows down the rate at which people’s living standards increase.
	C.	involves various trade laws or tariffs.
	D.	empowers governments to abuse the freedom and property of their citizens.

Answer 1

1) The answer is C. Development

As in this stage, the product is transformed into a prototype from an idea or concept. All the marketing strategies decided previously are tested and applied in this stage.

2) The answer is E. all of the above

Due to poor market research and ineffective management and despite the amount of time and money spent on developing and testing new products, a large proportion of new product introductions fail.

The recent example of these factors in real life may be the Zune player by Microsoft which was intended to be a competitor to Apple's iPod.

3) The answer is C. involves various trade laws or tariffs

The policies and laws enacted in countries are prone to rapid change and it creates uncertainty and lack of trust in global markets.

A recent example would be the trade war between the U.S and China.