MKTG 409 Pride CH12 ATP/Cengage/Mindtap

Scenario 12.2. In Australia Coca-Cola launched Mother, an energy drink. However, most people did not like the taste. Rather than introducing an entirely new product, Coca-Cola decided to reposition the product. It reformulated the Mother drink and re-released it with a new marketing campaign. Refer to Scenario 12.2. Which of the following slogans should Coca-Cola use to signal to consumers that its Mother drink has been repositioned?

"New Mother-Tastes Nothing Like The Old One"

Which is the best way to handle the deletion of a product?

Conduct a review to determine its impact on the overall product mix.

Refer to Scenario 12.2. In repositioning the product, Coca-Cola changed the taste of the product. It also changed the look of the product with a larger can size and different colors. This is an example of a(n) _________________________ modification.

aesthetic

Assume that Coca-Cola has a manager for Powerade, a manager for Coca-Cola, a manager for Frito-Lay, and a manager for Oatmeal. What types of managers are these?

brand managers

The Amazon Echo is a voice-enabled wireless speaker. It has been in development since 2010. In 2014 it was released only to Amazon Prime members for purchase. In 2015 it expanded and became available in stores nationwide. What stage in the product development process was Amazon Echo in 2015?

commercialization. During the commercialization phase, plans for full-scale manufacturing and marketing must be refined and settled and budgets for the project prepared.

Scenario 12.3. Victoria works in the production department for a manufacturer of coffee equipment. A new promising product idea the company is considering involves the development of simple pour-over coffee makers. These coffee makers would be made of wood with a cotton drip bag, similar to what is known in Costa Rica as Chorreadores. Victoria's firm thinks this type of product can catch on in the United States because they are exotic and highly environmentally friendly. Refer to Scenario 12.3. Victoria is working with a team to determine the feasibility of the product. Together with her team, she shows a small group of avid coffee customers a written description as well as a photo of the proposed product. She hopes to determine whether they would buy the product and what they think about it. Victoria and her team are at what stage in the product development process?

concept testing

Miles recently stayed at the Hyatt. He loved the experience. The staff was so nice, and the rooms were clean. The concierge was extremely helpful. He decided to stay there when he returned on his next business trip. However, the next time he stayed there, there were different staff members who were not very friendly or helpful. Also, the housekeeping staff did not change the towels in his room. The only thing he found to be the same was the concierge. This Hyatt seems to lack ____________.

consistency of quality

Most of the time, large organizations adopt the traditional functional form of an organization.

false

Refer to Scenario 12.3. Suppose that Victoria's firm decides to commercialize the pour-over coffeemaker. They appoint a manager to oversee the pour-over coffeemaker line and their single-serve coffeemaker line. This is an example of a market manager.

false. that would be a product manager

When automakers started installing Bluetooth in cars, this was an example of ______________.

functional modification. Functional modifications are changes that affect a product's versatility, effectiveness, convenience, or safety. Addition of the Bluetooth increased convenience for the customer.

Returning to the Buckyballs example from the last chapter, the company was forced to delete its magnetic desk toy product due to safety concerns after being sued by the Consumer Product Safety Commission. What type of product deletion did the firm most likely use?

immediate drop

Kira loves Mexican food. She saw a new Mexican restaurant that had affordable prices. She went in to eat but had a bad experience because the food was too salty. Kira thought perhaps it was just a fluke. She went back to the restaurant, but the food tasted just as bad. For Kira the restaurant has a low _________.

level of quality

When Cheetos developed a new "cheesy" flavor, Cheddar Jalapeno Crunchy Cheetos, it was an example of a ________.

line extension. A line extension is the development of a product that is closely related to one or more products in the existing product line but is designed specifically to meet somewhat different customer needs. Cheddar Jalapeno Crunchy Cheetos is closely related to original Cheetos and likely targets the same groups of customers, except this group likes their Cheetos hot.

Refer to Scenario 12.4. In which quadrant would a Ford most likely fit?

lower left (conservative, practical)

CD players have been declining for years. Recognizing that CD players are a thing of the past, those who manufactured CD players have not attempted to make any changes but are letting them live out the remainder of their lives. The makers of CD players have new technology to explore and do not want to waste resources trying to prolong the life of an obsolete technology. This is an example of _____________.

phase out

Functional testing occurs in which part of the product development stage?

product development

Refer to Scenario 12.1. P&G marketed Tide Basic as a detergent that could perform the basic functions of its signature Tide products at a lower price to the consumer. This was an attempt to create a concept of the product in customers' minds. This is referred to as ______________.

product positioning. Product positioning refers to the decisions and activities intended to create and maintain a certain concept of the firm's product, relative to competitive brands, in customers' minds.

Scenario 12.1. During the recession, sales for many companies plummeted. The rate of unemployment grew substantially. As a result, Procter & Gamble decided to release a cheaper, more basic version of their Tide product. This lower-priced Tide Basic lacked some of the cleaning features of its more expensive counterpart, but P&G thought it would be good for cash-strapped consumers. P&G tried out Tide Basic in 100 stores in the south for about a year. The product failed to take off, and they discontinued Tide Basic. A few years later they tried again with another less expensive Tide product called Simply Tide. Refer to Scenario 12.1. P&G had to modify its Tide product to appeal to this new demographic. What type of product modification did it make?

quality modification

Refer to Scenario 12.3. Victoria's firm released the pour-over coffeemaker, and it became a hit among a niche group of avid coffee fans. For a few years sales were high. Eventually, however, sales peaked and started to decline. Victoria's firm realizes the coffeemaker still has a small following of dedicated customers. They plan to move on to a more advanced pour-over coffeemaker, but in the meantime they plan to emphasize the core strengths of the current coffeemaker, including the fact that it is so sustainable. This is an example of what type of product deletion?

run-off. A run-off exploits any strengths left in the product. Victoria's firm plans to exploit strengths left in the product as they research other products to succeed it.

Method is a nontoxic, biodegradable cleaning supplies company. Suppose one of the employees on the production team at Method got an idea for the company to expand into biodegradable plastic wrap. He has heard about new technologies that could make this possible. Method has the resources to invest in this new product, but after considering it, the production managers nixed the idea because it did not fit well with its product mix. What stage of the product development process was Method in?

screening. In the screening stage, the ideas with the greatest potential are selected for further review. During screening, product ideas are analyzed to determine if they match the organization's mission, objectives, and resources.

Refer to Scenario 12.2. By using a larger can size and different colors, Coca-Cola is changing the ______________ of the product.

styling

Refer to Scenario 12.1. What stage of the product development process was P&G in when it decided to discontinue Tide Basic?

test marketing

All marketers of goods sell customer services.

true

Refer to Scenario 12.4. An Audi would most likely fit in the upper-right (classy-sporty) quadrant of the perceptual map.

true

Lindsey works in R&D at a consumer products firm. She meets up with Don, who works in finance, Riley, who works in production, and David, who works in marketing. Together they are going to develop a new product that Lindsey's department had researched. They are responsible for all aspects of developing the product. This is an example of a _________.

venture team