MKTG EXAM 2 Q12

Which of the following types of product modifications inevitably tend to cause firms to reduce costs in some of the organization?

Quality

Product deletion

may be opposed by management

Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticed a problem with the way one of the pockets was strung. Since it was a weekend, he didn't expect to have it repaired. However, when he called the store to leave a message, someone answered the phone. She gave Seth a number where he could call a repair representative who would come straight to Seth's house within an hour. Brunswick Billiards is most likely differentiating itself through

product support services

Early in the commercialization phase, marketers must make decisions about

warranties, repairs, and replacement parts.

The members of a venture team come from

different functional areas of an organization

In product modification, the first issue to consider is whether

the product is modifiable

Scenario 12.1 Use the following to answer the questions. ​ Cheetos Fat-free Crunchies is a product developed through advanced technology. Cheetos engineered a technique for making reduced-fat snacks that taste cheesier and stay fresh longer. Cheetos introduced Fat-free Crunchies in limited markets in 2012 and began national distribution in 2013. ​ About 18 months later, a series of competitors' ads was run claiming that Cheetos Crunchies actually contained 1.5 grams of fat, and that they contained preservatives and additives. Research showed that the taste of Cheetos Crunchies was also perceived negatively by some people. To save the product, Cheetos reduced the remaining fat to 0 grams, took out the preservatives, and improved the taste. ​ Refer to Scenario 12.1. The new, improved Cheetos Fat-Free Crunchies was a(n) ____

aesthetic modification

Which of the following is the best example of disruptive innovation?

iPhone

When Old Spice came out with the "Smell like a Man" advertising campaign, the goal was to __________ the brand from one that appealed to older men to a new, younger target market.

reposition

Scenario 12.2 Use the following to answer the questions. ​ Jonathan Moore, president of Polar Manufacturing Company, has just reviewed the performance reports for the previous year and sees that there are some areas in which the company needs to improve. He specifically feels they could do a better job in managing Polar's product mix. Jonathan calls a meeting of all the managers responsible for each of the product lines that Polar currently manufactures. The group decides that they need to eliminate the complete industrial product line of ice chests, and plan to do so by letting the product decline without any changes in the marketing strategy or product. The group also decides to delete Polar's line of personal thermal underwear; this product, however, is to be discontinued within the week due to its unprofitability. While discussing these strategies, the group has also uncovered several customer groups for which new products could be developed. The managers decide to assemble a group of people from all functional areas of the company and give them the responsibility for all aspects of the new-product development. ​ ​ Refer to Scenario 12.2. Because some products are not doing well, Jonathan Moore thinks that the company should set up a procedure to evaluate each product so that management will know when and how a product should be discontinued. He is suggesting a

systematic review