Marketing Exam 2

Rock-Tenn produces cardboard cartons to be used by companies in the food industry. Rock-Tenn is selling _____ products.

Business

When a greenhouse plant grower sells plants to nursery retailers, is selling _____ products.

Business

Why is the creation of a product the starting point for the marketing mix?

Determination of the price, promotional campaign, and distribution network cannot begin until the product has been specified.

T/F A warranty does not confirm the quality or performance of a good or service.

False; A warranty is a confirmation of the quality or performance of a good or service

T/F Retailers love national brands because overhead is low and there are no marketing costs, and they bring higher margins than private brands.

False; Private brands, not national brands, bring these benefits to retailers.

T/F A company that wants to market its product globally has only two branding strategies available: either use the brand name everywhere or develop a new brand name for each different market.

False; There is a third possible branding strategy--adapt and modify

T/F Rolex watches are very expensive, can only be purchased in high-end jewelry stores located in large metropolitan areas, and most buyers will accept no substitutes. Rolex watches are an example of a shopping product.

False; This is an example of a specialty product

T/F A product unknown to the potential buyers or a known-product that the buyers does not actively seek is referred to as an undesirable product.

False; This is an unsought product

T/F When the manufacturer of French's classic yellow mustard introduced French's Dijon mustard, French's Honey mustard, and French's Sweet Onion mustard, it was an example of cobranding.

False; This was an example of family branding. Co-branding is placing two or more brand names on a product or its package.

T/F Procter & Gamble's Olay line of skin products is very popular and profitable. P&G has launched an Olay body wash that is supposed to fight wrinkles. This is an example of a repositioning.

False; This would be an example of a product line extension. Repositioning involves changing consumers' perceptions of a brand.

T/F Trademark protection only lasts for five years.

False; Trademark protection typically lasts for 10 years; however, rights to a trademark last as long as the mark is used.

T/F Due to the time required to scan them, universal product codes (UPCs) are typically placed on merchandise that would be classified as shopping products.

False; UPCs appear on most items in supermarkets and other high-volume outlets. Bar codes also appear on shopping products such as clothing, appliances, high-end wines, etc. The UPC is essential in supply chain management for a wide variety of products, not just shopping products.

T/F Inez believes makeup is the most important part of her wardrobe. She spends considerable time comparing the prices, skin tones, and color options available at various cosmetics counters in department stores. For Inez, makeup is a convenience product.

False; for Inez, makeup is a shopping product

T/F Isaac Golding, owner of a tutoring service, has developed a design for his firm that includes an owl wearing large spectacles and carrying a satchel crammed full of books and papers. He plans to use this design on all communications the firm sends out. This design is called the firm's brand name.

False; such a design would be called the firm's brand mark, which is the element of a brand that cannot be spoken.

T/F The nutrition label on a package is an example of persuasive labeling

False; this is better described as informational labeling

Which type of product modification changes a product's versatility, effectiveness, convenience, or safety?

Functional

The two types of shopping products are:

Heterogeneous and Homogeneous

There are so many cell phones on the market, and they vary so much on price, quality, service, and features that consumers often have trouble comparing them. A cell phone would probably be considered a _____ product.

Heterogeneous shopping

________ are products consumers see as being basically the same, so consumers shop for the lowest price.

Homogeneous shopping product

Symptom of product line over extension

Manufacturing or marketing resources are disproportionately allocated to slow-moving products

A _____ is everything, both favorable and unfavorable, that a person receives in an exchange. It can be tangible, intangible, a service, an idea, or a combination of these things.

Product

The _____ is the starting point in creating a marketing mix.

Product

What are the three main purposes of branding?

Product identification, repeat sales, and new-product sales

Adding additional products to an existing product line in order to compete more broadly in the industry is referred to as:

Product line extension

Which type of product modification changes a product's dependability or durability?

Quality

Difference between shopping products and convenience products

Shopping products are usually more expensive than convenience products and are found in fewer stores

_____ products are searched for extensively, and substitutes are not acceptable. These products may be quite expensive, and often distribution is limited.

Specialty

T/F All sales have an implied warranty under the Uniform Commercial Code.

True

T/F Bar codes can be read by optical scanners.

True

T/F Coca-Cola is one of the world's largest manufacturers of beverages. It makes over 2,800 different beverage products, including sparkling drinks, waters, juices, juice drinks, teas, coffees, sports drinks, and energy drinks. The great variety of beverages made by Coca-Cola represents its product mix.

True

T/F Cultural traits can make a package design successful in one country and a failure in another.

True

T/F Devore loves southern-style cooking and always buys Glory Foods brand of collard greens, blackeyed peas, and hot sauces. In fact, she refuses to purchase any other brand because Glory Foods products taste just like her grandmother's cooking. Devore is showing intense brand loyalty.

True

T/F Kellogg's, Hanes, and General Electric are examples of a manufacturer's brand.

True

T/F Product modification occurs when changes are made in how the product functions, its quality, or some aesthetic characteristic of the product.

True

T/F Style modification creates planned obsolescence.

True

T/F The best generator of repeat sales is satisfied customers.

True

T/F The most important functions of packaging are to contain and protect products, promote products, facilitate product storage, and facilitate recycling.

True

Cooperative branding

When two brands receive equal treatment, borrowing from each other's brand equity

Which of the following entails placing two or more brand names on a product or its package?

cobranding

The two types of package labeling in common usage today are:

informational and persuasive

Labels that contain standard promotional claims like "new," "improved," and "super" are examples of _____ labels.

persuasive

A(n) _____ brand is one owned by the wholesaler or retailer.

private

The consumer product classification system is based on:

the amount of effort consumers spend to acquire the product

Define Product Mix Width

the number of different product lines an organization offers for sale

Firms increase the depth of their product lines for all of the following reasons EXCEPT:

to diversify risk

_____ products are products that are not known about or not actively searched for by consumers. These products require aggressive personal selling and highly persuasive advertising.

unsought

_________ products are purchased with little shopping effort. These products typically are purchased regularly, usually with little planning, and require wide distribution.

Convenience

A _____ is a name, term, symbol, design, or combination thereof that identifies a seller's products and differentiates them from competitors' products.

brand

The _____ is the element of a brand that cannot be spoken.

brand mark

A _____ is the part of the brand that can be spoken.

brand name