Chapter 10

Consumer product companies launch more than 45,000 products each year. Yet, just over _______ maintain distribution for more than two years.

25%

A fundamental but long-term strategic channel management option that should be considered during the maturity stage of the product life cycle is:

A change in the channel structure.

Which of the following is not a stage of the product life cycle?

Advanced

The particular mix of products carried by a channel member at the wholesale or retail level is referred to in the text as its:

Assortment.

Which of the following would not be considered a differentiated product?

Bic pens

Perhaps the best way for a manufacturer to find out how his products are selling relative to competitive products is:

By monitoring the flow of products at the point of final sale.

Treating post-sales service as an afterthought is a shortcoming in:

Channel management.

Which of the following is a false statement about when a manufacturer is developing new products and involvement of channel members?

Channel members should have experts at the manufacturer's plant during product development.

Bruce Computer Software, in developing its new products, must recognize that its intermediaries will be enthusiastic only if the new products:

Complement the intermediaries' current assortment.

The channel manager's efforts to manage the marketing channels effectively should focus on:

Creating synergy among the four components of the marketing mix.

During the decline stage of the product life cycle, it is not unusual to find all of the following except:

Increased profit margins.

For the channel manager, the most powerful element of the marketing mix for gaining channel member cooperation is:

It varies.

Manufacturers have to exert a lot of effort to gain channel member acceptance of new products because of all the following except:

Manufacturers are experts in identifying what customers want.

During the growth stage of the product life cycle, two overriding issues for channel management are:

Monitoring competitive products and providing for adequate product availability.

A manufacturer risks creating its own competition when it adopts a product strategy of:

National and private brands

Large supermarkets have selected small food manufacturers to provide natural food items for their stores because:

Of the small manufacturer's credibility.

The success of a manufacturer's product strategies is:

Often related to channel management.

Product line expansion and contraction is becoming even more challenging for channel managers because:

Power retailers are emphasizing store-by-store category management

When dealing with product brand strategy, the most difficult channel management issues arise in connection with:

Selling products under both national and private brands.

A product positioning strategy includes all of the following except:

The cost to manufacture the product.

Special trade deals can keep a channel member attracted to a product in the maturity stage of the product life cycle, but they may not be in the manufacturer's long-run interest because:

They are stopgap measures.

To a channel manager, the elements of the marketing mix do all of the following except:

They do not affect the performance of other channel members.

The main channel management issue in product line expansion and contraction strategies is:

Trying to gain channel member support for reshaped product lines.

Product decisions __________ channel management decisions.

affect

During the __________ stage of the product life cycle, manufacturers must be especially mindful of channel member actions with respect to competitive products.

growth

It is fair to say that many retailers have become ___________ about the profitability of the barrage of new products offered to them.

hyperskeptical, even cynical

Acceptance of a new product by channel members __________ its acceptance by final users.

is necessary for

The major strategic emphasis for channel managers to make possible changes to the channel structure or to select different types of intermediaries occurs in the _______ product life cycle stage.

maturity

When Levi Strauss Co. introduced its Levi Strauss Signature brand jeans, it was engaging in a(n) __________ strategy.

trading down

When the maturity stage of the product life cycle is reached, the sales turnover experienced by many of the channel members for the product in question is likely to:

Decrease.

Which of the following was a major problem for Jaguar dealers when Ford introduced the X-Type Jaguar?

Ford was careless about quality, which resulted in higher warranty costs.

A product differentiation strategy includes all of the following except:

Gross profit margins will increase through the life of the product.

Amazon.com has begun to pressure manufacturers to use less wasteful packaging because:

Having a large advertising budget.

Product service:

Should be considered as an important strategic issue.

Training for channel members to sell new products successfully:

Should be planned as the new product is being developed.

K&B Manufacturing, in developing its new products, must recognize that its intermediaries will judge the acceptability of the new products based on:

The product's profit potential in terms of meeting established margin structures.

When pursuing a trading up or trading down product strategy, the most critical issue a channel manager must consider whether:

Whether existing channel members provide adequate market coverage of the high or low end of the market.