Marketing 350 exam 3
a line extension
3M, the makers of Post-it notes, have just introduced "Extreme Notes." Extreme Notes are not designed for use on paper, but rather to use in extreme conditions such as to stick on food containers in the freezer or on an outdoor surface in the rain. Extreme Notes are _______.
phase-out
A cereal manufacturer has decided to delete one of its brands of cereal that is not satisfying a sufficient number of customers. It will delete the cereal by letting it decline and not changing its marketing strategy in a process called _______.
functional
A company that has made a change to a product to improve the product's versatility, effectiveness, convenience, or safety has made a(n) _______ modification.
business analysis
A group of managers has been assigned the task of developing a new product. They are now in the process of determining a product idea's potential contribution to the firm's sales and profits. The managers are at what stage of the new-product development process?
a product, product line, or interrelated group of products in an organization
A product manager is responsible for _______.
may focus on intensifying marketing efforts in a core market
A run-out strategy of product deletion _______.
brand manager
A(n) _______ in a multiproduct firm would be responsible for the performance of a single brand.
aesthetic
A(n) _______ modification attempts to minimize the amount of illegal product counterfeiting that occurs through constant change in design.
product differentiation
All of the following are major steps in developing new products, except _______.
durability
All of the following are major types of modifications that can be made to products, except _______.
they are no longer satisfying customer needs
All of the following are true about declining products, except _______.
True
Any human or mechanical efforts or activities a company provides that add value to a product, such as delivery and installation or financing arrangements are known as customer services.
styling
Apple has accused Samsung of patent infringement. Apple thought that Samsung's phones were very similar in physical appearance, or _____, to the iPhone.
product manager
As a _______ for Mars, Inc., Alex is responsible for all of the company's chocolate candies and bars.
Avoid competition
As a marketer at Procter & Gamble (P&G), you have been involved with developing a line of baby formula the company plans on releasing this month. P&G has not competed in baby formula before, so you must help decide how best to market and position this product. Variations of the product were developed to meet different babies' needs such as soy, gentle, and organic. Focus group and product testing results show that although parents liked the formula and felt it was healthy for their babies, they thought it performed just as well as their current brand and would not commit to switching from their regular brand. Given this information, which of the following should be the bases for positioning the product?
It should be immediately dropped from the product mix.
As head of sales and marketing for your company, one of your key responsibilities is to regularly review the company's product mix to determine if any products should be deleted. You are meeting with your marketing team to decide the fate of Product A. The following comments about Product A are made by different members of the team: "There are no strengths left in the product." "The losses on the product are huge and they keep growing." Which of the following actions should you take with Product A?
systematic review
At your company's quarterly meeting, marketing executives are discussing the company's products with detailed information on market share, contribution to overall sales, costs, and profit margins. Overall, the product mix is healthy, however, executives have identified one product whose sales have slipped. They will continue to watch this product and report again at the next quarterly meeting. This is an example of a _______.
venture team
Carmen from research and development, Jake from finance, Abby from marketing, Chris from production, and Deidra from engineering have been put together to develop a new line of headphones. These people are a(n) _______ at their company.
Commercialization
Carter is the product manager for Flintstones Children's Vitamins. They are in development of a new type of vitamin and have begun advertising the new vitamins on children's television shows and on the product's website. Based on this information, the vitamin is most likely in the _______ stage of the new-product development cycle.
Support Services
Chase Bank offers a credit card that it differentiates from competing cards by providing a toll-free phone number that connects directly with a customer service agent rather than an automated system. Chase is differentiating this credit card through _______.
run-out; phase-out
Christine and Donna work for a manufacturer of frozen pastries and are deciding how to delete a line of frozen waffles. Christine favors focusing on a core market and intensifying advertising directed at that market to try to have a temporary jump in profits. Donna, however, believes the marketing strategy should be unchanged and the product should decline without attempting to give the line new life. Christine favors a(n) _______, while Donna favors a(n) _______.
a line extension
Coca-Cola recently began offering new flavors of Diet Coke including ginger lime, zesty blood orange, and twisted mango. These flavors are examples of _______.
level of quality
Colleen thinks that the meal she ate at Outback Steakhouse was high in quality. However, she found a dinner she had last week at a five-star restaurant to have much higher quality. This example points out that the dimension of _______ is relative and may be difficult to describe without having a basis of comparison.
quality modification
CompuSave manufactures entry-level tablet computers aimed at providing customers with a low-price option. In order to lower the price for customers, CompuSave replaced its existing tablet computer with one made with a more inexpensive touchscreen and a cheaper plastic case. This is an example of a(n) _______.
product differentiation
Creating and designing products so customers perceive them as different from competing products is known as _______.
functional; aesthetic
Crest updating the cap of a tube of toothpaste to make it easier to get toothpaste out would be classified as a(n) _______ modification; a redesign of the logo and colors used on the tube to make them more visually stimulating would be classified as a(n) _______ modification.
perceptual map
Dan is a brand manager for the Ford Expedition and wanted to know how the Expedition and other competing vehicles were perceived by consumers. He used a _______, which allowed him to compare customer perceptions of each vehicle on two dimensions against customer ideal points.
business analysis
Darryl has been working on the product development of a new fertilizer that would be sold to landscapers. Darryl is currently analyzing potential costs associated with developing and distributing the fertilizer. Darryl is most likely in the _______ phase of the new-product development process.
product features
Dell offers a line of computers under the Alienware brand name that is specially designed for gamers. These computers have high-end graphic cards, extra RAM, faster processors, and a larger power supply. Dell is differentiating its Alienware line based on _______.
line extensions
Doritos has expanded beyond its original Nacho Cheese flavor to Cool Ranch, Jacked, Spicy Sweet Chili, and Salsa Verde, to name a few. These are examples of _______.
False
Durability refers to the overall characteristics of a product that allow it to perform as expected in satisfying customer needs.
concept testing; business analysis
During the new-product development process, two of the stages designed to reject possible product ideas that are likely to fail are _______, which involves asking potential buyers about their attitudes and initial buying intentions regarding the product, and _______, which evaluates the potential impact of the product idea on the firm's sales, costs, and profits.
concept testing
During which phase of new-product development process does a company select a small sample of potential buyers and present them with a product idea to have them answer questions regarding their attitudes and purchase intentions?
quality; functional
Dwayne is downloading the latest update for an app on his phone. Before downloading the app, he was able to read about the bug fixes that make the app have fewer errors and look at images showing the new easy-to-use interface for the app. Dwayne was able to learn about the _______ modifications by looking at the bug fixes and the _______ modifications by looking at the pictures of the interface.
warranties, repairs, and replacement parts
Early in the commercialization phase, marketers must make decisions about _______.
venture team
Elizabeth from marketing, Manuel from finance, Tony from production, Cynthia from engineering, and Alexandra from research and development were put together by their company to develop a new low-calorie, high-nutrition snack treat. These five people are a(n) _______ at their company.
product modification
For Sony, makers of PlayStation video game consoles, the introduction of the PS4 Pro is a _______. Sony will eventually stop producing the PS4 console.
rollout
Frito-Lay decided to initially launch a new flavor of potato chips in Columbus and Cleveland, Ohio. After it was successful in those two areas, the market for the flavor was expanded to the rest of Ohio before expanding to Indiana, Michigan, West Virginia, and Kentucky. After its success in those states, the flavor was introduced nationally. The chips were launched using a _______.
be redesigned
Functional modifications usually require that the product _______.
market manager
Gene works in the uniform and apparel division of Cintas. He has responsibility for managing the marketing activities for uniforms aimed at restaurants and dining facilities. Gene's title is _______.
new product; disruptive innovation
Gillette introduced the Mach3 in 1998. It had a powered wet shaving system and three blades. Gillette claimed that the blades of the Mach3 had the thinnest edges of all of its products. The Mach3 was just one of the many technologically advanced razor products that Gillette and its competitor Schick have released over the years. Dollar Shave Club, however, operates on a different premise. It claims that razor blades are too expensive and that all the bells-and-whistles are not necessary.
it keeps competition from developing new products in a timely manner
Gradual product introduction is desirable for all of the following reasons, except _______.
product design
How a product is conceived, planned, and produced, including its physical characteristics, is referred to as _______.
False
Idea generation for new products comes from sources outside of the company—customers, suppliers, and competitors.
Commercialization
Ideally, test marketing would precede which stage in the new-product development process?
Product manager
If Kimberly-Clark's Cottonelle brand of toilet paper offered you a position where you would have total marketing responsibility for all of its flushable wipes, this position would probably hold the title of _______.
a line extension
If Kraft was to introduce a new version of its Macaroni & Cheese using bow tie pasta and still continue to produce all of its other Macaroni & Cheese products, this would be an example of _______.
Product
If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog food, this position would probably hold the title of _______ manager.
brand
If Ruth were hired by Procter & Gamble and given total marketing responsibility over Tide Free and Gentle Liquid Laundry Detergent, she would hold the position of _______ manager.
phase-out
If Splenda decides its "Splenda Essentials," which is its sweetener that includes vitamins, is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) _______ deletion strategy.
Avoid competition
If a company is introducing a brand into a market and its characteristics do not differ significantly from the competition, it would likely choose which of the following for positioning the new product?
aesthetic
If a local gym changes the music being played over the loudspeakers and replaces the wallpaper in the locker rooms, these modifications are most likely to be viewed as _______ modifications.
an immediate drop
If the losses of a product are too great to prolong a product's life, the best strategy of deletion is _______.
True
If you buy McDonald's french fries in Fort Collins, Colorado, and later buy McDonald's french fries in College Station, Texas, you expect them to be of the same quality. This is referred to consistency of quality.
reliability and durability; company reputation and ease of repair
In consumer markets, buyers find _______ to be important characteristics for quality, while _______ are important quality characteristics in business markets.
systematic review
In order to delete products, companies should periodically evaluate each product to determine its impact on the overall effectiveness of the firm's product mix. This process is called a _______.
customers must be able to perceive that a modification has been made
In product modifications, three conditions must be met to improve a firm's product mix: the product must be modifiable, the modification should make the product more consistent with customers' desires, and _______.
competitors may rush to introduce a similar product
It is important to move to the commercialization phase of new-product development as soon as possible after successful test marketing because _______.
product development
Jasmine is part of a team working on a new line of rugs designed for use on outdoor patios. During a meeting with the team, Jasmine asked whether they wanted to make the level of quality and durability of the new rugs higher than the quality level of their chief competitor. Based on her question, the team is most likely in which phase of the new-product development process?
brand manager
Jennifer is a _______ at Frito-Lay. She manages all varieties of Tostitos chips.
perceptual map
Jim is a marketing manager for Tylenol Cold and wanted to know how Tylenol Cold and other competing products were perceived by consumers. To do this, he surveyed a sample of customers about all of the different competitors on two dimensions and created a _______.
functional
Johnson & Johnson recently made some changes to Johnson's Baby products. The products have redesigned bottles with pumps that can be used with one hand, which is a(n) _______ modification.
market manager
Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n) _______.
not introduce new products
Katrina works for Samsung and is working on developing a new type of television set. She knows that introducing a new product is risky, but it is also risky to _______.
product development
Kim is currently building a working model of a new motorized scooter for kids to ride. She is engaged in which phase of the new-product development cycle?
immediate drop; run-out
Kristen and Patti work for a toy manufacturer and are deciding how to delete a line of unprofitable dolls. Kristen believes that the dolls have become enough of a burden that they should halt production. Patti, however, believes there is still a core market for the dolls and they should intensify advertising toward that market in hopes of some increased profits. Kristen is in favor of a(n) _______, while Patti's strategy is a(n) _______.
part of a venture team
Lana works in the finance department of Unilever. She is currently part of a cross-functional group that has been put together to determine the feasibility of a new line of deodorants and antiperspirants. After the product has launched, Lana will return to her position in the finance department. Lana is currently a _______.
business analysis
Levi's is considering adding suit separates for men to its product mix. Marketers are asking, "Does this fit with our current mix?" and "Is there enough demand to justify entering this market?" Levi's is likely in the _______ phase of new-product development.
they are a less expensive and less risky way to increase sales
Line extensions are more common than new products because _______.
market manager
Lola is a _______ and manages all of the marketing activities for K-6 educational customers for the Scholastic Corporation.
concept testing
Marketers at Starbucks have generated several ideas for new food products. Management has assessed whether these ideas are consistent with Starbucks' objectives and resources. Several product ideas were dropped after this analysis. The next stage of development for the remaining product ideas is _______.
product development
Marketers make determinations as to whether a new product is technically feasible to produce and whether the cost of production will be low enough to proceed during _______.
False
New products are usually rolled out on a state-by-state basis.
competitors may rush to introduce a similar product to the market
One disadvantage of test marketing is that _______.
idea generation
Outback Steakhouse wants to expand its line of food products. The managers sent surveys to customers to determine which food items would appeal to them. Outback is currently in the _______ phase of new-product development.
jam
Poppy is a brand manager for Mattel. She discovered that a competing toy brand was engaging in a product test of a new doll. Poppy decided to increase advertising and promotions of her dolls in the test market area in order to _______ the test program.
the product's performance characteristics do not differ significantly from competing brands
Positioning to avoid competition may be best when _______.
is often a difficult decision for management to make
Product deletion _______.
no longer satisfies a sufficient number of customers
Product deletion can best be described as the process of deleting a product from the product mix when it _______.
product development
Prototypes are utilized during the _______ phase of new-product development.
False
Quality modification of an existing product aims at changing the product's safety, convenience, or versatility.
dependability and durability
Quality modifications are changes that relate to a product's _______.
True
Repositioning can occur by changing a product's price or distribution.
Concept testing
Ron has been asked to take part in some marketing research. He has been shown a few drawings and been given a written description of a potential product. He has been asked questions such as "Do you find this product attractive?" and "How does this product compare to what you currently use?" Ron is most likely participating in which stage of the new-product development process?
idea generation
Samsung wants to add features to the upcoming version of its Galaxy S smartphone. It has asked its engineers and other employees to submit possibilities for new features. Samsung is currently in the _______ phase of the new-product development process.
a product feature
Samsung's Family Hub refrigerator allows owners to leave notes, sync calendars, display photos, and view the inside of the refrigerator without opening the door on a touchscreen on the front of the refrigerator. This is an example of _______.
Commercialization
Sarah is analyzing the results of a test market for a new line of workout clothing. Since she is trying to determine if any changes need to be made to the marketing mix, she is in the _______ phase of the new-product development process.
product differentiation
Schwinn has developed a new bicycle that has the strongest and lightest-weight frame of any bicycle outside of those made for racing. In addition, Schwinn has added several new features to its bike that are attractive to individuals who work as "bike messengers" in large, urban cities. Since no other company makes a bike that has these specific attributes, Schwinn is creating _______.
test marketing
Senior management for a fast food burrito restaurant chain has developed a new pricing strategy. They have some doubt about whether the pricing strategy will be positively received by consumers. In this instance, they should probably proceed to the _______ stage of the new-product development process.
head-to-head
Seventh Generation is developing a new type of organic body wash that is going to be higher in price than the competition but provides superior performance characteristics compared to other organic body wash brands. It should most likely use _______ positioning for the new body wash.
rollout
Sometimes companies will decide to launch products in stages rather than all at once in a process called _______.
aesthetic; functional modification
Sony's design of its new large-screen television sets with smoked-glass control panel covers and other visual changes would be classified as a(n) _______ modification; changes to make the TV's remote easier to use would be classified as a(n) _______.
reposition
Suave used a series of commercials with the slogan "Can you tell?" in an attempt to show that people could not tell if a person washed their hair with Suave or a more expensive shampoo. Using this process, Suave was able to _______ itself from a value brand to a quality brand.
.jamming
Taylor is a product manager for Coleman's line of tents and recently discovered that Eureka, one of their competitors, was in the process of test marketing a new type of six-person tent in the Rocky Mountain region. He might decide to try _______ in order to reduce the validity of Eureka's results.
business analysis
Taylor is part of a team working on a new talking teddy bear that would teach children math. Leesa, his manager, has asked Taylor to look at market information to forecast sales of the teddy bear to determine whether there will be enough sales to justify developing the product. She is asking Taylor to proceed with which stage of the new-product development process?
product features
TerraCycle is a company that takes waste and "upcycles" it into new products. Currently, TerraCycle markets a bicycle rack to schools, parks, and cities that is made of recycled plastic. This rack does not scratch or damage the bikes as concrete and steel racks can and is eco-friendly since it is made of waste material. TerraCycle is differentiating its product based on _______.
product positioning
The decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds is _______.
Consistency
The degree to which a product has the same level of quality over time is called _______.
different functional areas of the organization
The members of a venture team come from _______.
concept testing
The new product team at a clothing manufacturer has generated many ideas for styles of new clothes and assessed whether the new clothes are consistent with the manufacturer's objectives and resources. During the assessment, several new ideas were rejected. The next step in the new-product development process is _______.
test marketing
The product development team at Burger King has been working on a new sandwich to be added to the menu. The company has developed a prototype that they feel will be successful. In order to avoid competitors coming to market with a similar menu item before they commercialize the sandwich, Burger King's management is contemplating skipping the _______ phase of the new-product development cycle.
true
The run-out approach to product deletion generates a sales spurt just before removing the product from the market.
allows marketers to measure sales performance of a product in a natural marketing environment
The test-marketing stage of the new-product development process _______.
False
To manage products effectively, the product manager must be independent of other departments.
level of quality
Victor thinks that a Lexus coupe is a quality vehicle, yet compared to a Mercedes Benz, he feels the quality of a Lexus is not as high. This demonstrates that the dimension of _______ is relative or difficult to describe without a basis of comparison.
With a line extension, the original product remains in the product line, while in a product modification, the original product is replaced by the new product.
What is the primary distinction between a line extension and a product modification?
Screening
What step in the new-product development process may involve evaluators using a checklist of new-product requirements to reject most new product ideas?
The granola bars were in the early stages of a rollout.
When Ana was visiting her family in Illinois, she found a new type of granola bar she had never seen before. When she returned home to Texas, she could not find the bars in any store. Which of the following reasons most likely explains why she could not find the flavors in Texas?
product modification; line extension
When Jeep Wrangler produces the new year's model vehicle, it discontinues production of last year's. However, when Apple brings out a new iPhone, it continues to produce the previous version for at least some period of time. Jeep Wrangler's new-product strategy is an example of a _______ while Apple's is an example of a _______.
functional modification
When a smartphone manufacturer adds wireless charging so that the phone needs to be placed on a charging pad rather than having to plug it in, the manufacturer has made a(n) _______.
the product design
When creating a new running shoe, New Balance works with engineers and biomechanics specialists to determine how the shoe must be made to help runners perform their best. Its REVlite foam is light but doesn't sacrifice cushioning in the shoe. The company also gets inspiration for shoe colors from a variety of sources. All of these components are examples of _______.
Phase-out
When deleting a product, if a company decides to let the product decline without changing the marketing strategy, they would be utilizing which process?
Honda adds rear-view cameras to all of its new vehicles.
Which of the following is the best example of a functional modification?
Test marketing allows marketers to expose a product in a natural marketing environment to measure sales performance.
Which of the following statements about test marketing is true?
product differentiation
Whirlpool has developed a new washing machine that provides new technology that can sense the needs of each load of laundry and adjust the water levels and wash actions to make clothes cleaner while being gentler on the fabric. It also has added new features such as the ability to spray detergent directly and evenly on clothes and an option to steam clean. Since its competition does not make a washing machine with these features, Whirlpool is creating _______.
design; support services
William manufactures office chairs. He has studied ergonomics to develop a chair that is more comfortable than other chairs on the market. He also offers a lifetime warranty that allows people who buy his chairs to have anything repaired or replaced if broken. William is most likely differentiating through _______ with the comfort level and through _______ with his warranty.
functional
Xavier has gone to the store to shop for a new USB drive. He finds the same brand he has bought in the past but notices that the capacity of the smallest one available in the store is more than triple the capacity of the one he currently has. The drive has undergone a(n) _______ modification.
Repositioning
Years ago, Old Spice was marketed to older men. In 2010, the company came out with new commercials and advertisements through the "The Man Your Man Could Smell Like" campaign that featured athlete Isaiah Mustafa and was geared towards younger customers. Through _______, Old Spice was able to boost sales and reach a new demographic.
Intensify marketing activities on a core market
Your company has an outdated technology product that is struggling in the market. The product appears to have some strength left that might be able to be exploited. Which of the following product deletion strategies would be most appropriate for the product?
Head-to-head competition should be the basis for positioning the product
Your company is preparing to launch a new product next month. Since you are leading the launch effort, you called a meeting of all stakeholders to discuss how the product should be positioned in the market. You acknowledge that the product will carry a higher price than competing products, but all the independent rating agencies have concluded that the product has superior performance characteristics relative to its competing brands.
Screening
"Does this new product idea meet our company's overall objectives?" is a question that marketers would most likely ask during the _______ phase of the new-product development process.
