Marketing Exam 2 (Product life cycles)

The 'core' product is most closely associated with

The fundamental benefits that the product delivers to buyers

the company that is the first to introduce a new type of product to market often achieves a

pioneer advantage

all of the products offered for sale by a firm characterize its

product mix

When video games were first introduced, they were played on 16-bit game computers. As soon as the 32-bit machines were introduced, sales for the 16-bit games and players quickly fell. The 16-bit product category entered the _____ stage of its product life cycle

decline

The 'level of product' that most closely represents the 'extra utility' provided by services such as credit, warrantees, delivery, post-sale service, etc. is called the

enhanced product

Like many characters created for commercials, the chihuahua in the Taco Bell commercials has appeared on T-shirts, caps, cups, and posters--some licensed, many not. Soon some other commercials will capture the attention of the American consumer, and some other character(s) will appear on T-shirts, caps, cups, and posters. These commercial-derived products are examples of:

fads

During the _____ stage of the product lifecycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands

growth

the transition of a product into the decline stage of its PLC is most likely a result of

introduction of a new, substitute technology.

As described by the product life cycle, the profit curve for most new products

is negative through most (perhaps all) of the introductory stage of the product life cycle

ford motor company purchases anti-freeze in bulk from DuPont Corporation. This anti-freeze is placed in the radiators of its new cars prior to their being shipped to the dealers. The anti-freeze is

manufactured or component part

the oil drilling platform depicted below is best classified as:

An installation

Which of the following products is characterized by the requirement for 'intensive distribution?

Convenience goods

Campbell s recently ran a series of ads on TV in which a variety of new recipes for its soups were featured. This strategy generally is employed for products that are at the ______ stages of the PLC.

Growth & maturity.

Cappio was the first canned ready-to-drink coffee on the market. It had to create the demand for the product category. As soon as demand for the product was shown to exist, Coke and Pepsi began promoting their own brands of canned, ready-to-drink coffee. During which stage of the product life cycle would you expect to see such activity occurring?

Growth.

The classification scheme for consumer products divides these products into three basic categories defined by

How much effort is expended in the purchase process

Which of the following best describes the primary distinction between component parts and fabricating materials?

Parts undergo little or no additonal processing as they are combined into the larger product. The parts are always uniquely identifiable.

In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small regional soft drinks, such as Big Red, Cheerwine, and Vernors. What type of product strategy would you expect these small bottlers to use?

Product differentiation

the Clorox Company, a manufacturer of bleach, has added a line of bleach-free disinfectant wipes for cleaning up spills and sticky fingers. With the addition of the Clorox disinfecting wipes, the firm has changed its:

Product mix width or breadth.

the battery-powered hand drill in the picture is best classified as

accessory equipment

the 'convenience goods of the industrial market' are:

operating supplies.

The breadth or width of a firm's product mix refers to

the number of product lines carried.

You are the brand manager for Tide (P&G brand) and are considering ways to revive lagging sales. Recognizing that your brand and the product category as a whole are 'mature,' you are examining several strategic options. Which of the following is least likely to be a viable alternative to accomplish your sales goals?

Harvest the brand.

Which of the following is an unlikely management strategy to use for a product in the decline stage of its product life cycle?

Increase the depth of the product line by adding new line extensions or flanker brands

Brand product life cycles generally are more erratic in shape and duration than are product category life cycles because:

Marketing managers are continually adjusting their marketing programs for brands as market and environmental conditions change

Industry sales are growing, but the rate of growth has slowed dramatically. The number of competitors is increasing and individual firms are spending large sums in order to buy market share from one another. As a result of increased marketing costs, profits are eroding. Which stage of the product life cycle seems to be indicated?

Maturity

Dial Company introduced liquid soap in 1988. Today competition in the industry is intense. The manufacturers of liquid soap are adopting a defensive positioning strategy and intensive product distribution. Their promotions appeal to brand loyalty. From this information, you know that liquid soap is in the _____ stage of its product life cycle.

Maturity.

Products like Campbell's soups have been around for decades. Now Campbell spends much of its advertising dollars on publishing recipes that use Campbell's soups as one of their main ingredients. This strategy suggests that Campbell's soup is in the _____ stage of its product life cycle.

Maturity.

Which of the following is least likely to contribute to the general increase in profits experienced by products that have entered the growth phase of the PLC?

Spending on advertising and other forms of promotion tends to be drastically reduced during this stage

With respect to the PLC, the x-axis most closely represents:

Time

That aspect of a 'product' that is most responsible for creating 'brand image' is:

Total product

Tarzan dolls, bookbags, sweatshirts and posters seemed to become popular overnight. After about six months, you were able to buy Tarzan products at flea markets and garage sales for less than 25 percent of their original cost. Tarzan-related products exemplify:

a fad

candice insists on buying only Revlon cosmetics. Rather than purchasing other brands when Revlon is not available, Candice will postpone her purchase or drive substantial distances to find her preferred brand. To Candice, Revlon is what marketers refer to as a (select the best answer):

specialty good or product