MAR 4832 EXAM 3 FSU QUESTIONS AND VERIFIED
ANSWERS
_____ growth is essential for the life of the company - Answers - Transformational
Why do companies adopt a continuous innovation strategy? - Answers - It allows
companies to respond to their customer's needs and changing attitudes quickly by
offering products that will satisfy them
Continuous Innovation requires - Answers - No change in a consumer's use of the
product; Involves a slight change in a product or service
Attribute - Answers - Something that adds value or is associated with an object, person,
organization, etc.
Low Risk - Answers - - Large part of the marketing strategy
- No additional requirements of the supply chain
- Companies typically have all the processes and equipment present to adapt to this
change
- Doesn't require large outlays of resources for research and development (R&D) to
develop a new product
- If a new product is not successful firms can demarket (i.e., halting manufacturing and
sales) it resulting in a lower level of loss
- Companies will use an existing family brand or brand name to introduce products that
are similar in nature
- Companies can use existing employees to develop the products. Since the process is
similar, there is no need to bring in new people
Creating an _____ around the new product is key - Answers - Aura
Aura - Answers - Builds excitement in the market and creates pul demand
Pull Demand - Answers - Results from customers asking retailers for a certain type of
product, thus pulling the product through the distribution channels to be offered for sale
The ability to create the innovative mindset is the responsibility of - Answers - The top
managers
Collaboration - Answers - Breaks down barriers and connects people within the
community to share ideas and help to develop new products
Continuous Innovation moves toward a ______ organizational chart - Answers -
Horizontal
,Organizational chart - Answers - Representation of the layers of management and how
everyone within the organization is arranged based on how information flows and
responsibility
Horizontal Organizational Chart - Answers - Fewer levels of management; Easier to
access to top executives
Vertical Organizational Chart - Answers - More levels of management, more
bureaucracy and communication flowed is slowed
Incremental Innovation - Answers - A type of innovation that requires a moderate
change in consumer behavior while interacting with the new product
Examples of Incremental Innovation - Answers - Hybrid car, Online shopping, or taking
a class online
The level of risk associated with incremental innovation is - Answers - Greater than
continuous, but not as great as disruptive
Five Areas of Incremental Innovation - Answers - - Gaining a short-term competitive
advantage while increasing market share and profits
- Improving an existing product as dictated by consumers
- Increased cost to manufacture different products
- The need to hire new employees
- Increased advertising costs and customer education
Incremental innovation can provide the company with a - Answers - Temporary comp.
advantage
First-Mover Advantages - Answers - Characterized when companies introduce a
product to market that is unique or the first of its kind
What are essential for incremental innovation? - Answers - Monitoring customer needs
and finding ways to improve our current products
Incremental innovation has more ____ involved - Answers - Costs
Higher costs in incremental innovation are attributed to - Answers - - Greater research
and developments (R&D) costs
- The need for employees with a different skill set rather than talents currently available
- Additional equipment
- Greater manufacturing space or warehousing
- Other related costs (e.g., vehicles, payroll expenses, etc.,)
Cost/Benefit Analysis - Answers - An analysis that looks at the rate of return of the
monetary investment by dividing the costs by the revenue
, Mass Advertisement - Answers - Does not target any specific consumer group, but is
sent to the population via tv, radio, or print, digital, etc.
Targeted Advertisement - Answers - Specifically targeted to a specific segment of
population via electronic messaging, email, mail, telephone, and digital
____ _____ is a key ingredient to the success of launching a new product - Answers -
Customer education
Transformation/Disruptive Innovation - Answers - An innovation that transforms or
disrupts current products or markets and requires significant change in consumer
behavior
Disruptive innovation is also called - Answers - "New-to-the world products"
"New-to-the world Products" - Answers - Products that are so radically new, consumers
have never seen anything like them before and it can change how cultures, the world
operates
Examples of Disruptive Innovation - Answers - Apple products or Henry Ford's Model T
Jobs to be done theory - Answers - States that innovation must be able to accomplish
the task a consumer seeks
Disruptive innovation is a - Answers - Higher risk
Why is disruptive innovation at a higher risk? - Answers - - Once a disruptive innovation
is introduced it must recoup the investment associated with developing this type of
product
- Consumer lack of awareness for the innovation
Four Rules of Innovation - Answers - - Is it easy to duplicate? Must answer a need, gain
competitive advantage, etc.
- Is it easy to understand? Does the product to make sense
- Is it unique? Needs to be different than competitors
- What is the emotional bond the innovation will create, and is it lasting?
Products that are easily duplicated give - Answers - No comp. advantage
Strategic Business Unit (SBU) - Answers - An autonomous unit that has their own
mission and vision yet reposts to a central headquarters
Example of a SBU - Answers - Buick, GMC, Chevrolet
Community - Answers - - Interaction based not learned
ANSWERS
_____ growth is essential for the life of the company - Answers - Transformational
Why do companies adopt a continuous innovation strategy? - Answers - It allows
companies to respond to their customer's needs and changing attitudes quickly by
offering products that will satisfy them
Continuous Innovation requires - Answers - No change in a consumer's use of the
product; Involves a slight change in a product or service
Attribute - Answers - Something that adds value or is associated with an object, person,
organization, etc.
Low Risk - Answers - - Large part of the marketing strategy
- No additional requirements of the supply chain
- Companies typically have all the processes and equipment present to adapt to this
change
- Doesn't require large outlays of resources for research and development (R&D) to
develop a new product
- If a new product is not successful firms can demarket (i.e., halting manufacturing and
sales) it resulting in a lower level of loss
- Companies will use an existing family brand or brand name to introduce products that
are similar in nature
- Companies can use existing employees to develop the products. Since the process is
similar, there is no need to bring in new people
Creating an _____ around the new product is key - Answers - Aura
Aura - Answers - Builds excitement in the market and creates pul demand
Pull Demand - Answers - Results from customers asking retailers for a certain type of
product, thus pulling the product through the distribution channels to be offered for sale
The ability to create the innovative mindset is the responsibility of - Answers - The top
managers
Collaboration - Answers - Breaks down barriers and connects people within the
community to share ideas and help to develop new products
Continuous Innovation moves toward a ______ organizational chart - Answers -
Horizontal
,Organizational chart - Answers - Representation of the layers of management and how
everyone within the organization is arranged based on how information flows and
responsibility
Horizontal Organizational Chart - Answers - Fewer levels of management; Easier to
access to top executives
Vertical Organizational Chart - Answers - More levels of management, more
bureaucracy and communication flowed is slowed
Incremental Innovation - Answers - A type of innovation that requires a moderate
change in consumer behavior while interacting with the new product
Examples of Incremental Innovation - Answers - Hybrid car, Online shopping, or taking
a class online
The level of risk associated with incremental innovation is - Answers - Greater than
continuous, but not as great as disruptive
Five Areas of Incremental Innovation - Answers - - Gaining a short-term competitive
advantage while increasing market share and profits
- Improving an existing product as dictated by consumers
- Increased cost to manufacture different products
- The need to hire new employees
- Increased advertising costs and customer education
Incremental innovation can provide the company with a - Answers - Temporary comp.
advantage
First-Mover Advantages - Answers - Characterized when companies introduce a
product to market that is unique or the first of its kind
What are essential for incremental innovation? - Answers - Monitoring customer needs
and finding ways to improve our current products
Incremental innovation has more ____ involved - Answers - Costs
Higher costs in incremental innovation are attributed to - Answers - - Greater research
and developments (R&D) costs
- The need for employees with a different skill set rather than talents currently available
- Additional equipment
- Greater manufacturing space or warehousing
- Other related costs (e.g., vehicles, payroll expenses, etc.,)
Cost/Benefit Analysis - Answers - An analysis that looks at the rate of return of the
monetary investment by dividing the costs by the revenue
, Mass Advertisement - Answers - Does not target any specific consumer group, but is
sent to the population via tv, radio, or print, digital, etc.
Targeted Advertisement - Answers - Specifically targeted to a specific segment of
population via electronic messaging, email, mail, telephone, and digital
____ _____ is a key ingredient to the success of launching a new product - Answers -
Customer education
Transformation/Disruptive Innovation - Answers - An innovation that transforms or
disrupts current products or markets and requires significant change in consumer
behavior
Disruptive innovation is also called - Answers - "New-to-the world products"
"New-to-the world Products" - Answers - Products that are so radically new, consumers
have never seen anything like them before and it can change how cultures, the world
operates
Examples of Disruptive Innovation - Answers - Apple products or Henry Ford's Model T
Jobs to be done theory - Answers - States that innovation must be able to accomplish
the task a consumer seeks
Disruptive innovation is a - Answers - Higher risk
Why is disruptive innovation at a higher risk? - Answers - - Once a disruptive innovation
is introduced it must recoup the investment associated with developing this type of
product
- Consumer lack of awareness for the innovation
Four Rules of Innovation - Answers - - Is it easy to duplicate? Must answer a need, gain
competitive advantage, etc.
- Is it easy to understand? Does the product to make sense
- Is it unique? Needs to be different than competitors
- What is the emotional bond the innovation will create, and is it lasting?
Products that are easily duplicated give - Answers - No comp. advantage
Strategic Business Unit (SBU) - Answers - An autonomous unit that has their own
mission and vision yet reposts to a central headquarters
Example of a SBU - Answers - Buick, GMC, Chevrolet
Community - Answers - - Interaction based not learned
