Product Development and Management Flashcards
7 cards from real CMP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Product Development and Management flashcards as text
Which stage of the new product development process involves evaluating a product concept for commercial feasibility, including cost, revenue, and profit projections?
Answer: Business analysis
Business analysis evaluates the product concept's commercial viability by examining cost structures, revenue projections, and expected profitability before committing to full development.
In the product lifecycle, which stage typically sees the steepest rise in sales combined with the highest profit margins?
Answer: Growth
The growth stage features rapidly increasing sales with still-limited competition, allowing companies to achieve high profit margins before the market becomes saturated.
What is the primary purpose of a Minimum Viable Product (MVP) in product development?
Answer: To test core product assumptions with minimal resources
An MVP tests the most critical product assumptions with minimal development investment, enabling teams to gather real market feedback before committing full resources.
Which product development approach has cross-functional teams working simultaneously on different stages to accelerate time-to-market?
Answer: Concurrent engineering
Concurrent engineering overlaps development phases by having cross-functional teams work in parallel rather than sequentially, significantly reducing total development time.
A product in the maturity stage of its lifecycle should typically focus on which of the following marketing strategies?
Answer: Market, product, or marketing mix modification to extend life
At maturity, marketers focus on modifying markets by finding new users, modifying the product to attract new buyers, or adjusting the marketing mix to stimulate renewed growth.
What does 'product cannibalization' refer to in a company's product portfolio?
Answer: A new product that takes sales away from an existing product in the same company's lineup
Cannibalization occurs when a company's new product draws demand away from its own existing products rather than capturing new customers or competitor share.
Which of the following best describes a 'product line extension'?
Answer: Adding new items or variants to an existing product line within the same category
A product line extension adds new sizes, flavors, forms, or variants within the same product category to serve more customer preferences without entering new markets.