Q: At Level 3 do I have to introduce the second product?
A: No. Introduction of the second product is a marketing strategy decision that you should make based on careful analysis.

Q: What are the starting product features for the second product?
A: Unlike the situation with the first product, which was already in the market when you took over responsibility for marketing,  there is not yet a second product under development.  Thus, the "starting position" for the second product for the purpose of calculating R&D costs is 0 on the number of tasks feature, 0 on  command similarity, and 0 on ability to customize. Note that this means that development costs for the second product can be substantial. For example, a product with a level of 5 for all three attributes would have R&D costs of $400,000.  For this reason, your firm may need to delay introducing a second product if it does not have the money to develop and market it.

Q: Can I do market research about the second product before introducing it?
A: Once you are allowed to move to the Marketing Plan Decisions form for Level 3, you can get marketing research reports on  Product 2 (in that period or any subsequent period), regardless of whether or not you have introduced the second product. In the upper right section of the Marketing Plan Decisions screen, in addition to seeing the check boxes for Product 1 marketing research reports, as soon as we move to Level 3 you will see a column of check boxes for Product 2 marketing research reports.
You may want to request marketing research reports on the second product one period earlier than you plan to introduce it, so that you can use this information to support the introduction; on the other hand, there is sometimes a trade-off between the advantages of moving sooner vs. the advantages of having more information.  Of course, that’s just part of the challenge of marketing.

Q: If I don't introduce the second product as soon as we’re allowed to move to Level 3, can I do so later?
A:  Yes. You can introduce the second product at any time after you move to Level  3.  Bear in mind, though, that you do face development costs and it is sensible to think about how long it might take you to recoup those costs once the product is on the market.
 

Q: If I want to spread out R&D costs for a second product over more than one period, can I do that?
A: Yes (but not before plan decisions for Level 3 are accepted).As soon as we go to Level 3,  you can manufacture a prototype of the product with a reduced feature set. For example, if your eventual product feature levels will be 5, 5, and 5, you could create a prototype at levels 2, 2, and 2 in one period.  To do this, enter 2, 2, and 2 as your product features and specify a production order quantity of 1. In the next period, you can move the product features to 5, 5, and 5, thus spreading out the R&D costs across two periods.
 

Q:  We are doing much better with our second product than with our first product.  Can we discontinue our VRD and focus exclusively on the second product?
A:  No.  The top management of the company believes that it is important to be in the VRD product-market since that is often the first voice-recognition product purchase that computer owners and users make.    
 

Q:  We diversified into a second product and have not been successful.  Can we discontinue our second product and return to being a single-product company?
A:  Yes.  Top  management believes that VRD is the main product-market to focus on.  The market for the second product is a less-developed, perhaps riskier, market about which less is known.  Thus, it is better not to  jeopardize your reputation in the VRD product-market and/or your financial position.