MKTG TEST 7 &8
Individual Product and Service
- Focuses on decisions about product attributes, branding, packaging, labeling, and product support services
specialty products
- consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort - Specific brands of cars, designer clothes, medical services
Which of the following is true of the product life cycle (PLC)?
It is generally difficult to forecast the sales level at each PLC stage.
Extending an existing brand name to new forms, colors, sizes, ingredients, flavors of existing product category
Line extensions
Which of the following statements is most likely true about the product life cycle?
Growth is a period of rapid market acceptance and increasing profits.
Which statement is most likely true about idea generation in the new product development process?
Idea generation is usually followed by procedures that reduce the total number of ideas.
Which of the following is true about the introduction stage of a new product?
sales growth tends to be slow
Which of the following is true of the growth stage of the product life cycle?
sales start climbing quickly
The third part of a marketing strategy statement describes the ________ of a new product.
sales, market share, and profit goals
The use of traditional business marketing concepts and tools to create behaviors that will benefit individual and societal well-being is called ________ marketing.
social
________ products are consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make more effort than usual to purchase.
specialty
Lengthening a product line beyond its current range is referred to as product line ________.
stretching
Colonial furniture has been in existence since the 1600s and continues to adorn homes today. According to the product life cycle concept, it would be described as a ________.
style
A company's external sources of new product ideas include its ________.
suppliers
Business advisory services such as legal or advertising are classified under which category of industrial products?
supplies and services
A brand extension gives a new product instant recognition and faster acceptance.
TRUE
T/F: A laptop that is purchased for a graphic design studio is considered an industrial product.
TRUE
T/F: A product is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.
TRUE
T/F: Companies that combine a customer-centered approach with team-based new product development gain a big competitive edge by getting the right new products to market faster.
TRUE
T/F: During the decline stage of the product life cycle, product sales may plunge to zero, or they may drop to a low level where they continue for many years.
TRUE
T/F: In the new product development process, the purpose of idea generation is to create a large number of ideas and the purpose of the next set of stages in the process is to reduce that number.
TRUE
T/F: Most major new innovations are unsought until consumers become aware of them through advertising.
TRUE
T/F: Product modifications are an important source of new products for organizations.
TRUE
T/F: Support services are an important part of a customer's overall brand experience.
TRUE
T/F: The Consumer Product Safety Act of 1972 established the Consumer Product Safety Commission, which has the authority to ban or seize potentially harmful products and set severe penalties for violation of the law.
TRUE
T/F: The distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased.
TRUE
T/F: The federal government has the legal authority to prevent a company from adding products through acquisitions if the acquisition threatens to lessen competition.
TRUE
T/F: The installation of an innovation management system allows a company to collect, review, evaluate, and manage new product ideas.
TRUE
T/F: The maturity stage of the product life cycle is characterized by a slowdown in sales growth.
TRUE
T/F: Total quality management is an approach in which all of the company's people are involved in constantly improving the quality of products, services, and business processes.
TRUE
T/F: Under a team-based new product development approach, company departments work closely together in cross-functional teams. Overlapping the steps in the product development process saves time and increases effectiveness.
TRUE
T/F: When a company decides to go international with a product, it must first figure out what products and services to introduce and in which countries.
TRUE
T/F: When consumers react more favorably to a brand than to a generic or unbranded version of the same product, the brand is said to have positive brand equity.
TRUE
The moral of the product life cycle is that companies must continually innovate; otherwise, they risk extinction.
TRUE
________ is the stage where a product and its proposed marketing program are introduced into realistic market settings.
Test marketing
Parvon, a cleaning product, is in the maturity stage of the product life cycle, and Parvon managers have decided to modify the market. Which of the following steps should Parvon managers most likely take to achieve this goal?
find new market segments for the brand
In the ________ stage, a firm most likely faces a trade-off between high market share and high current profit.
growth
The new product development process usually starts with ________.
idea generation
Safari Unlimited recently conducted national research to generate ideas for a new line of fatigues geared to women. The company uncovered a number of ideas about clothing and accessory preferences as well as important benefits such as built-in sunblock and durability. The Safari Unlimited product development team will most likely use ________ next to arrive at a realistic number of products for the new fatigues line.
idea screening
Which of the following steps of the new product development process would most likely use an R-W-W framework?
idea screening
A product line is most likely too short if managers can ________.
increase profits by adding items
A product line is most likely too long if managers can ________.
increase profits by dropping items
Marketers make product and service decisions at three levels:
individual product decisions, product line decisions, and product mix decisions
services cannot be seen, tasted, felt, heard, or smelled before they are bought § EX: Cosmetic surgery cannot see result before purchase
intangibility
Orienting and motivating customer-contact employees and supporting service people to work as a team to provide customer satisfaction is known as ________ marketing.
internal
The Dairy Bar, a national soft-service ice cream retailer, buys cones from Cones & More. Cones & More is an important resource for marketplace information. They're considered a(n) ________ source of new product ideas for the Dairy Bar.
internal
Which link in the service profit chain emphasizes superior employee selection and training?
internal service quality
Companies like 3M, Google, and Sony have ________ that encourage employees to develop new ideas.
intrapreneurial programs
In which stage of the product life cycle will promotional expenditures be significantly high in an attempt to create consumer awareness of a product and its features?
introduction
Which of the following is an example of an unsought product?
life insurance
________ occurs when a company uses its existing brand name for new forms, colors, sizes, ingredients, or flavors of an existing product category.
line extension
Non-Dairy Delight, a manufacturer of soy milk, attracts new customers by adding cinnamon, pumpkin, and vanilla flavors to its traditional product. In this case, the company has developed its brand with ________.
line extensions
Doggie World concept tested an idea for a new chew toy that would entertain dogs while simultaneously cleaning their teeth. Dog owners were pleased with the results. The next stage in developing the new product concept is ________.
marketing strategy developing
Different brands in a given product category
multibrands
Sportware, a leading shoe manufacturer, markets sneakers under the brand name "Athletix" and dress shoes under the brand name "Cameo" in order to target the two different market segments. What branding strategy is most likely being used by Sportware?
multibrands
Xenon, a leading consumer-electronics manufacturing company, markets its products under the company's own brand name. In this case, Xenon has sponsored its products by promoting them as ________ brands.
national
Product mix width refers to the ________.
number of different product lines the company carries
Some companies are now appointing ________, whose job is to protect consumers from harm and the company from liability by proactively ferreting out potential product problems.
product stewards
Many companies are taking a ________ approach today, viewing quality as an investment and holding quality efforts accountable for bottom-line results.
return-on-quality
In which of the following cases is crowdsourcing used for new product development?
A company creates a forum where anyone can contribute new product ideas.
Which of the following is most likely true of a product in the maturity stage of the product life cycle?
A slowdown occurs in sales growth.
It's important for a market pioneer to choose a launch strategy that is consistent with competitive positioning strategies.
FALSE
T/F: A sequential product development approach is team-oriented, enabling firms to bring products to market very quickly.
FALSE
T/F: Acquisitions are not considered a source of new products for organizations.
FALSE
T/F: An abstract presentation of a product concept is likely to increase the reliability of the concept test.
FALSE
T/F: Corporate image marketing consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people.
FALSE
Product mix depth refers to the ________.
number of versions offered for each product in the line
A&B's Smarter Planet campaign markets A&B as a company that provides innovative solutions that improve the world's IQ. This activity of A&B is an example of ________ marketing.
organization
T/F: An augmented product is a product that is built around the core benefit and actual product by offering additional consumer services and benefits.
TRUE
T/F: Branding has become so strong today that hardly anything goes unbranded.
TRUE
BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. Which of the following is an example of brand extension for BerryBerry?
The company introduces BerryBliss, a dried berry snack mix for kids.
Which of the following is a desirable quality for a brand name?
The name should translate easily into foreign languages.
________ can describe a product class, a product form, or a brand.
The product life cycle concept
Which statement about convenience products is most likely true?
They are bought by consumers frequently and with minimal comparison.
________ involves using an existing brand name for a new product category.
brand extension
An innovation management system would most likely be used by ________.
brand managers to collect, review, and evaluate new product ideas
Which of the following costs is most likely associated with commercialization?
building or renting a manufacturing facility (must decide where to launch the new product)
Which of the following is an industrial product categorized under materials and parts?
cement
Gershwin, a musical toy for toddlers, is in the maturity stage of the product life cycle, and Gershwin managers have decided to modify the product. What will Gershwin managers most likely do to achieve this goal?
change the packaging of the toy
Product quality
characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs
________ occurs when two established brand names of different companies are used on the same product.
co-branding
Which of the following is an industrial product categorized under supplies and services?
coal
32) Introducing a new product into the market is called ________.
commercialization
Brands vary in the amount of power and value they hold in the marketplace. Iconic brands like Apple, Google, and Harley-Davidson have achieved substantial brand ________.
equity
Which of the following is an example of an industrial product grouped under capital items?
factory
Denta Clean's decision to add a whitening toothpaste to its current line of toothpastes is an example of product line ________.
filling
Consumer products that the buyer either does not know about or knows about but does not normally consider buying are referred to as ________ products.
unsought
Fads are characterized by their ________.
unusually high sales and rapid decline
A product is in the maturity stage of the product life cycle, and the company decides to modify the marketing mix. Which of the following steps is the company most likely to take?
use aggressive sales promotions
Social marketing
using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being
quality of services may vary greatly depending on who provides them and when, where, and how they are provided
variability
Consistency of a product mix refers to the ________.
ways in which the various product lines are related
In which of the following cases is little or no test marketing most likely recommended for a new product?
when the costs of developing and introducing the product are low
A company launching a new product must first decide ________.
when to launch the product, second is where
Specialty products are consumer products and services that customers generally buy ________.
without making comparisons
shopping products
- consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality, price, style § Spend much time and effort in gathering info on § EX: furniture, clothing, major appliances
An example of licensing:
Berry, a fruit juice company, uses a well-known cartoon character to promote the company's line of children's products and pays the creator of the cartoon character a fee.
BerryBerry is a fruit juice company that has traditionally sold three varieties of mixed-fruit juices: DazzleBerry, AquaBerry, and GloBerry. The company wants to add more products to its product line. In this case, which of the following is an example of co-branding by BerryBerry?
BerryBerry teams up with SFX, a sporting goods company, to introduce a line of energy bars called BerryBerry SFX.
Extending an existing brand name to new product categories
Brand extensions
Hollingsworth is a retail company that is planning to release a new line of luxury personal care products. Its managers are now reviewing the sales history of similar products and conducting marketing surveys to estimate minimum and maximum sales for the product. In which of the following stages of the new product development process is the product?
Business analysis
________ involves a review of the sales, costs, and profit projections for a new product to determine whether they satisfy a company's objectives.
Business analysis
consumer product that customers buy frequently, immediately, and with minimal comparison and buying effort - Usually low priced and readily available - detergent, magazines
Conveinence products
________ products are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort.
Convenience
Which of the following statements is most likely true about the new product development process?
Customers, competitors, distributors, and suppliers are major sources of new product ideas.
T/F: Line extensions occur when a company extends existing brand names to new or modified products in a new category.
FALSE
T/F: Manufacturers rely on distributors and suppliers as internal sources of new product ideas.
FALSE
T/F: Modifying a product is an ineffective strategy in the maturity period of the product life cycle because the product's decline is irreversible at this stage.
FALSE
T/F: Orienting and motivating customer-contact employees to work as a team to provide customer satisfaction is known as social marketing.
FALSE
T/F: Product line filling occurs when a company lengthens its product line beyond its current range.
FALSE
T/F: Products include only tangible objects.
FALSE
T/F: Salon Finish is test marketing its new smoothing shampoo by assessing consumer satisfaction in laboratory stores where hair is washed and blown dry. Salon Pro is using controlled test marketing in this scenario.
FALSE
T/F: Service variability means that the quality of services does not depend on who provides them.
FALSE
T/F: Shopping products are purchased more frequently than convenience products.
FALSE
T/F: Specialty products are primarily purchased for use in conducting a business.
FALSE
T/F: The amount of test marketing needed is the same for each new product.
FALSE
T/F: The augmented product is considered the basic level among the three levels of product.
FALSE
T/F: The business analysis stage is the final step in the new product development process.
FALSE - Commercialization is
T/F: During concept testing, a product is evaluated by management without any input from external sources.
FALSE - concept testing is tested with a group of target consumers
T/F: Concept testing typically follows the marketing strategy development phase of the new product development process.
FALSE - it comes before it
T/F: Product development usually costs the least among all the steps of the new product development process.
FALSE - it is very expensive!
T/F: When developing a new product, concept testing should ideally be followed by the business analysis stage.
FALSE - it should be followed by marketing strategy development
T/F: Since suppliers are so close to the market, they are valuable sources of information about consumer problems, marketing opportunities, and new product possibilities.
FALSE - suppliers tell about new concepts techniques and materials - distributors pass along info about consumer problems
Which of the following statements is most likely true about unsought products?
Marketers use aggressive advertising to convince consumers to buy unsought products.
Which of the following is a disadvantage of a team-based approach to new product development?
Organizational confusion and tension are likely to affect the process.
AKA product portfolio. The set of all product lines and items that a particular seller offers for sale
Product Mix
In a sequential new product development process, which of the following is true of the product development step?
Product development is usually followed by test marketing.
Which of the following is most likely a true statement about services?
Service industries vary greatly.
_____________ products are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style.
Shopping
Which of the following is most likely a true statement about shopping products?
Shopping products are purchased less frequently than convenience products.
Howard Schultz, the founder of Starbucks, positioned his bistros as "a third place" between work and home where patrons could share and enjoy a cup of coffee with friends. This illustrates ________.
a core customer value
Brand
a name, term, sign, symbol, or design or a combination of all that identifies the products or services of one seller or group of sellers and differentiates them from those of competitors
A ________ is defined as a name, term, sign, symbol, or design, or a combination of these, that identifies the maker or seller of a product or service.
brand
The stage in which product ideas are presented to groups of target consumers physically or symbolically is referred to as ________.
concept testing
Evans and Hills, a beverages manufacturing company, has developed a new line of specialty teas and is seeking regular input from the test marketing process. To facilitate this process, the firm uses BuyerScan, a software that generates store-by-store, week-by-week reports on the actual sales of tested products and the impact of in-store and in-home marketing efforts. Which of the following approaches does this scenario illustrate?
controlled test markets
Laundry detergent, candy, magazines, and fast food are purchased frequently by customers. They are examples of ________ products.
convenience
A company adding new features to a product will most likely assess each feature's value to customers relative to its ________.
cost to the company
In terms of packaging functions, Tiffany & Co.'s robin egg blue boxes ________.
create immediate consumer recognition
The team-based new product development approach saves times and increases effectiveness because departments work closely together in ________.
cross-functional teams
Kallton is a multinational communications and information technology corporation. Its principal products are mobile telephones and tablets. It recently announced on its Web site that customers can suggest ideas for its upcoming product model. Contributors of short-listed ideas will be adequately rewarded. In this case, Kallton is using ________ to generate new product ideas.
crowdsourcing
Sleek Designs Inc. is producing its first eReader. The company is striving to overcome some of the issues communicated by customers about competitive products including screen glare and product bulkiness. Sleek Designs Inc. is using a ________ approach in their new product development process.
customer-centered
A product life cycle has five distinct stages: product development, introduction, growth, maturity, and ________.
decline
During the ________ stage of the product life cycle, product sales may plunge to zero, or drop to a low level where they continue for many years.
decline
Marque, a high-end maker of designer watches, has started making inexpensive watches to take advantage of enormous growth rates in low-end market segments. Marque is most likely engaging in ________.
downward stretching
A doctor performing hip surgery on a patient illustrates how a service can be produced and consumed simultaneously. This is an example of which service characteristic?
inseparability
services are produced and consumed at the same time and cannot be separated from their providers
inseparability
Zappos recognizes the importance of the buyer-seller interaction. They only hire people with an innate "passion to serve" and they go through four weeks of customer loyalty training. This is referred to as ________ marketing.
interactive
Cement is an example of an industrial product that is categorized under ________.
materials and parts
Craft Inc.'s Krayons is a multi-color chalk material that was released in the market over a century ago. Since the release, the company has had remarkable sales and Krayons has remained unchanged. However, over the last few years, sales of Krayons have been stagnant. Competitors have begun marking prices down, and increasing their advertising and sales promotions. Craft's Krayons is most likely in the ________ stage of the product life cycle.
maturity
When a product is in the ________ stage, profits level off or decline because of increased marketing outlays to defend the product against competition.
maturity
Appliances Galore is continually updating its line of refrigerators to reflect market trends and customer needs. Although the product class is in the maturity stage of the product life cycle, they maintain healthy sales of their line of refrigerators by continually ________.
modifying the product
Product mix has four dimensions: width, length, depth, consistency
o Width = number of different product lines o Length = total number of items a company carries within its product lines o Depth = number of versions offered for each product in the line o Consistency = how closely related the various product lines are in end use
Which of the following terms best describes the process of designing and producing a container or wrapper for a product?
packaging
As a result of ________, a company cannot make its product illegally similar to a competitor's already established product.
patent laws
services can not be stored for later use or sale
perhishability
World Skies' Flight 167 takes off at 50 percent capacity. The unoccupied seats cannot be stored for later sale or use. This is an example of which service characteristic?
perishability
The second part of a marketing strategy statement describes the ________ of a new product.
planned price, distribution, and marketing budget
Fred's, a national supermarket chain, sells its own brand of items across all categories. Such items are considered ________ brands.
private
Flores Fashions promotes its clothing by emphasizing the durability and quality of the fabrics it uses. The company has positioned its brand based on ________.
product attributes
A detailed version of a product idea stated in meaningful consumer terms is a ________.
product concept
In the ________ stage of new product development, products undergo rigorous tests to make sure that they perform safely and effectively, or that consumers will find value in them.
product development
Taco Bell test marketed Doritos Locos Tacos for three years and developed 45 prototypes. Once the decision was made to launch the new taco shell, it moved into the ________ stage of the new product development process.
product development
Electronics International has experienced a significant decline in sales for SweetTunes, its MP3 player, during the past two years. In response, the company has reduced its advertising and sales expenditures for SweetTunes in an attempt to improve short-run profits. Which term best describes Electronics International's strategy for SweetTunes?
product harvesting
The style, ease of use, and multi-blade technology of Gillette's Fusion razor system is a ________ that has favorably impacted consumer perceptions about other new products sold by the company.
product image
group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges
product line
Clorox sells five major product lines including cleaning, household, lifestyle, professional, and international. Together the product lines make up Clorox's ________.
product mix
Under a ________ product development approach, one company department works to complete its stage of the product development process before passing the new product along to the next department and stage.
sequential
Service variability means that ________.
service quality depends on when, where, and how they are provided
________ refer to a form of product that consists of activities, benefits, or satisfactions offered for sale that are essentially intangible.
services
Which of the following is a pure tangible good?
shampoo
Major appliances, furniture, and clothing are typical examples of ________ products.
shopping
Using ________, researchers measure consumer responses to new products and marketing tactics in laboratory stores or virtual online shopping environments.
simulated test markets
Susan has been redecorating her new condo for a year. She is carefully selecting every item. Susan finds an oriental rug that matches her color scheme and décor perfectly and purchases it immediately without engaging in comparison shopping. This is an example of a(n) ________.
specialty product
The first part of a marketing strategy statement describes the ________ of a new product.
target market, planned value proposition, and sales goals
Under a ________ new product development approach, company departments work closely together in cross-functional groups, overlapping the steps in the product development process to save time and increase effectiveness.
team-based
At Fantastic Flavors, a large regional chain of candy stores, employees from marketing, design, production, and finance departments work in cross-functional groups to save time and money in the new product development process. From this description, it can be inferred that Fantastic Flavors uses a(n) ________ approach.
team-based new product development
Which of the following is an example of a shopping product?
television
Foods International is developing a new gluten-free, chili-flavored pretzel. The marketing strategy for the product has already been developed and presented to top management. Several prototypes were also formulated by the company's R&D team. The final prototype is now being tested rigorously to ensure that it passes FDA standards. Once approved, the next step will most likely be ________.
test marketing
If a product passes both the concept test and the product test, the next step is most likely to be ________.
test marketing
What is brand equity?
the added value a brand name gives to a product beyond the functional benefits provided
Silkskin Cosmetics is advertising its newest line of eye makeup. Made from all-natural ingredients, the products are hypoallergenic. Silkskin is selling the products in specially designed tubes that make application easier. Which of the following is a core customer value for Silkskin's line of eye makeup?
the desire for having beautiful eyes
Product mix length refers to the ________.
total number of items a company carries within its product lines
