MKTG 350 Exam 2 Yumei Mu

Tiffany & Company's blue-colored box is widely recognized by consumers. Which of the following roles of packaging does this exemplify?

Aesthetics

A(n) _ is defined by the American Marketing Association as "a name, term, design, symbol, or any other feature that identifies one seller's goods or services as distinct from those of other sellers."

Brand

KFC is very protective of its "Seven Herbs and Spices" recipe, which, in the view of the company, gives it a significant competitive advantage over other restaurants, and will use any legal resource available to protect its patented formula. Which dimension of brand equity does this example illustrate?

Brand Assets

The owners of NK Medical Equipment have been developing the brand equity of their MRI and CAT scan equipment. Now, on the mention of NK's machines, radiologists and hospital purchasing agents usually say that they have heard of NK's offerings and are interested in learning more about them. This response signals a familiarity and potential commitment to the brand. In this case, which dimension of brand equity has been achieved by NKMedical Equipment?

Brand Awareness

Courtney always prefers Coca-Cola products. She does not consider other beverages, even when they are cheaper than Coca-Cola. Which of the following benefits of brand equity for customers does this exemplify?

Brand Loyalty

_ percent of the world's economic growth in the next 20 years is predicted to come from emerging markets, such as China and India.

75

Dell used its brand to expand into new areas including printers and consumer electronics such as LCD and plasma televisions. Dell engaged in a _ extension

Category

A company can use its brand to expand into new product types. This is known as a

Category Extension

Costco and Visa joined together to offer a Costco-Visa card that allows users to get rebates on their purchases at Costco while expanding the reach of Visa to Costco members. This is an example of

Cobranding

Sabeen didn't have time to shop for Christmas gifts, so she ordered everything from Amazon. This shows how Amazon's _ leadership is one way the company creates differentiation in its offerings.

Convenience

_ is the most common method for entering foreign markets.

Exporting

T/F: A good branding strategy can overcome a product that fails to deliver on the value proposition by infusing it with the brand image

FALSE

T/F: Brand-loyal customers are less forgiving of problems related to the brand, which hinders the company's ability to respond to a negative experience.

FALSE

T/F: Family branding separates the company from the brand, which insulates the company if there is a problem with the brand

FALSE

T/F: Market penetration strategies allow the firm to introduce new products to new customers, often including international markets.

FALSE

T/F: Small companies have to invest a lot of money to go global.

FALSE

T/F: When the product is wrong, skilled marketing communication and pricing sophistication can correct the problems

FALSE

The brand name "Bailey's" is used for a variety of products including liqueur, coffee creamer, and candies. This is an example of a _ strategy

Family Branding

Ford Motor Co. introduced its automobile called Nova in Mexico. It faced difficulty in selling the car because "Nova" in Spanish means "It doesn't go." This illustrates a problem with

Fitting the product to the culture

An understanding of marketing beyond home markets develops over time as a company gets more international business experience. This process is referred to as the

Global Experience Learning Curve.

Which of the following criteria for market segmentation is least likely to enable successful segmentation?

It should be undifferentiated

Hazardous materials such as cleaning products, pesticides, and many other items require 14 different pieces of information to be included on the label. This is an example of the _ requirements of labeling.

Legal

Offering other manufacturers the right to use the brand in exchange for a set fee or percentage of sales is known as

Licensing

International Delight coffee creamers frequently adds new flavors to its product offerings. This would be an example of a _ extension

Line

Time Express, a well-established North American delivery service, wants to expand service into Central and South America. According to Igor Ansoff's Product-Market Matrix, this is classified as the _ strategy

Market Development

Bliss Massage Therapy Center maintains a database of over 700 clients and sends each one a special discount offer in the month of his or her birthday. Managers hope that as existing customers use the discount, they will see an overall growth in sales. According to Igor Ansoff's Product-Market Matrix, this is an example of the _ strategy

Market Penetration

Many countries restrict marketing to children more severely than in the United States. A firm considering direct foreign investment would report this finding under the heading of

Marketing Communication Barriers

Delxen Inc., a multinational company, uses the same prices for all its products globally. This type of pricing is called

One World Price

Pierre Cardin partnered with several other product manufacturers and attached its name to a wide assortment of products including clothing, housewares, and even cosmetics. Eventually, its brand image became diluted and lost its influence as a luxury manufacturer. Which of the following disadvantages of cobranding does this example illustrate?

Overexposure

After months of in-home research, Kraft discovered that its customers often transferred Chips Ahoy cookies to jars to keep them from going stale. The company solved this problem by creating a patented resealable opening on the top of the bag. This is an example of the _ objective of package design

PROTECTION

Even though a national brand pain reliever and a store brand pain reliever both contain the same amount of ibuprofen per capsule and are both gel coated, Cho chooses to purchase the national brand because she thinks it will work better based on the brand name alone. Which dimension of brand equity does this example illustrate?

Perceived Quality

Since Maytag's appliances have earned a reputation as being reliable and durable, John decided to buy a new Maytag washing machine, and was willing to buy it despite the fact that it was more expensive than other brands. Which dimension of brand equity does this example illustrate?

Perceived Quality

Prices of products are often higher in a foreign country than the home country due to transportation charges, taxes, tariffs, and exchange rate fluctuations. This change in price from home country to foreign country is referred to as

Price Escalation

When Sunshine Inc., a cosmetics manufacturer, introduced an additional line of perfumes, the response from its existing customers was good. According to Igor Ansoff's Product-Market Matrix, this is an example of the _ strategy

Product Development

Coca-Cola changes the taste of its soft drinks to meet local market preferences. This is an example of

Product adaptation.

_ target markets are those segments that have reasonable potential but for one reason or another are not best suited for development immediately.

Secondary

Lever Brothers, a worldwide leader in consumer products, follows a brand strategy in its personal care division with nine brands (AXE, Dove, Lifebuoy, Lux, Ponds, Rexona, Sunsilk, Signal, and Vaseline) that operate independently of one another. This is an example of _ branding

Stand Alone

Super-Mart decides to create its own brand of personal care products. It enters into an agreement with a large manufacturer of this type of product to supply Super-Mart with the products that will carry its newly formed brand's name. This is an example of _ branding

Store

T/F: According to the reading, "Cutting Sony, a Corporate Octopus, Back to a Rational Size," Sony's ability to charge premium pricing for its products is shrinki

TRUE

T/F: Different target markets will view the same product in completely different ways.

TRUE

T/F: Package labeling represents the last marketing opportunity before the purchase decision.

TRUE

T/F: The first step in moving into global markets is to evaluate the market opportunities.

TRUE

T/F: The perceived quality of a brand enables companies to extend the product range, can lead to a price premium opportunity, and is a differentiator in the market.

TRUE

All of these are package objectives EXCEPT

To Entertain

In the context of positioning errors, when consumers have only a vague idea about the company and its products, and do not perceive any real differentiation, it is called

Underpositioning

Target marketing is the process by which _

a company evaluates market segments and decides which ones have the most potential for development

In the 1970s, Michelob beer changed its advertising messages frequently and saw sales plummet. Slogans like "Weekends were made for Michelob," "Put a little weekend into your weekday," and "Special times deserve a special beer" had consumers checking their calendars to find the right time to drink a Michelob. Michelob was suffering from the positioning error of _

confused positioning.

Segmenting markets means that a company is

dividing the market into meaningful smaller markets based upon common characteristics

Age is a commonly used method of segmentation. Age alone, however, may be dangerous because

grouping older customers into one group is an approach that fails to consider the vast differences in other important variables

People around the world prefer Swiss watches over watches manufactured in other countries. In the context of product issues, which of the following best describes the customer's perception?

Country-of-origin effect