MKT 350-Exam 2 Review

Which of the following health products is the LEAST complex?

An over-the-counter pain reliever such as Tylenol or Advil

When a firm changes its packing as a means of repositioning the product, what is it trying to accomplish?

Appear more up to date Attract a new target market

True or false: In order to achieve success, a brand must have a name that is a part of the English language.

False

Labels must comply with laws and regulations and must include which of the following?

Ingredients contained in the product Safety precautions

Branding includes which of the following?

Slogans, logos, distinctive packaging

By the time the late majority enters the market, sales tend to ______.

Stabilize or decline slightly

True or false: Both firms AND consumers can be innovators.

True

True or false: Most brands marketed in the United States are manufacturer brands.

True

True or false: Targeting the wrong segment and poor positioning are contributing factors to the high rate of failure for new products.

True

When consumers experience brand loyalty, which feeling do they associate with the brand?

Trust

A brand that is projected to earn $1 billion over the next 12 months has a high brand ______.

Value

Late Majority

Will buy it after most of their friends have one

Co-branding can enhance consumer perceptions of product quality by linking

a brand to an existing well-known quality brand.

Marketers invest in developing a strong brand identity to help establish ______.

buyer loyalty

The degree to which one's product is consistent with the needs and habits of target consumers is known as ______.

compatibility

The theory that helps marketers understand the product or service adoption rates of consumers is called ______.

diffusion of innovation

Since brands are easily recognized by consumers and signify a certain quality level to buyers, brands ______.

help consumers to make quick decisions

While early adopters are crucial to the success of a new product, they still only make up a relatively small percentage of the total consumers in a given product market. This percentage is approximately how big?

13.5%

Which of the following is an example of a research and development effort?

A test kitchen at a fast food restaurant

Which of the following are roles played by packaging?

Adjusting product sizes for different markets Differentiating a product from competitors Promoting product features or changes

The diffusion of innovation curve refers to the rate in which consumers ______ a given product or service.

Adopt

Innovators generally keep themselves knowledgeable about the product category through which activities?

Attending product-related seminars Subscribing to trade magazines Frequenting product-specific blogs

A new clothing brand is struggling to gain market share due to consumers' lack of familiarity with the brand and concerns about the quality of its products. How could the company use co-branding to enhance consumers' perceptions?

By linking a brand that is well known for its quality

Which of the following are advantages to firms of owning their own brands?

Choice of market segments and positioning Ability to create brand equity Control over marketing strategy

Which product has the most observability?

Cordless screwdriver

The risks associated with brand licensing include which of the following?

Diluting brand equity

After signing a number of licensing agreements to allow their characters to appear on clothing, toys, and video games, the makers of a popular television show saw viewership decline and consumer perceptions of the show start to fall. What is the most likely reason for this phenomenon?

Dilution of brand equity through overexposure

Lance enjoys owning new gadgets that make his life easier, but he is cautious. He doesn't want the hassle of working through all the initial problems with new technology, so he waits until those problems have been solved. Lance probably belongs to which of the adopter groups in the first half of adopters?

Early Majority

Which diffusion of innovation adopter group waits until the "bugs" are worked out of a particular product, in order to avoid risk, but still purchases within the first half of all adopters?

Early Majority

True or false: In recent years, sales of store brands have declined significantly.

False

True or false: The sole purpose of a product package is to protect the product from damage while in the supply chain.

False

In addition to consumers, innovators may also come from which group?

Firms

Apple created an entirely new brand that started with the iPod and evolved into different product categories (e.g., iPhone, iPad) before anyone else could catch on. Thus, Apple was the ______, which made the firm easily recognizable to consumers, helping it to gain an early market share lead.

First mover

While pioneers capture an early and commanding market share, imitators often enter the market and gain which advantages?

Focus marketing efforts on demand for their brand Can offer better products at lower prices Capitalize on the pioneer brand's weaknesses

Which government agency is responsible for enforcing product labeling laws in the United States for consumer products?

Food and Drug Administration

Which factor has contributed to the increased presence of store brands in recent years?

Growth and consolidation of retail firms

Identify one of the disadvantages from being a first mover.

Having to establish the market all alone

The diffusion of innovation curve illustrates the typical rate of adoption for a product or service among consumers. According to the curve shown, when would marketers expect to see the highest frequency of purchases for a given product or service?

In the middle of the curve

What are some of the benefits a brand can receive from a licensing agreement?

Increased brand equity Additional revenues

Toyota sells cars under several brands: Lexus, for luxury cars, Scion, for targeting young consumers, and Toyota for its mid-market cars. Toyota is using a(n) ______ brand naming strategy to target different market segments.

Individual

Some firms use ____ for each of their products, as opposed to the same name or brand for all their product lines and products.

Individual brands

The majority of the brands marketed in the United States are ______ brands.

Manufacturer

What are some advantages experienced by pioneer firms over later entrants?

More readily recognizable to consumers. Establish an early market share lead. More likely to command a greater market share over a long period.

is when a company hires an outside firm to help accomplish a task.

Outsourcing

True pioneer products are products that have never been seen before and literally create new markets. Which of the following products would be considered a pioneer product at the time it was introduced?

Pampers disposable diapers in the early 1960s Amana's microwave oven in 1967

______ or breakthrough products are brand new products that establish a completely new market or radically change both the rules of competition and consumer preferences in a market.

Pioneers

People prefer that the _____ package on their products is convenient in terms of storage, use, and consumption.

Primary

Another name for a store brand is a(n) ______ brand

Private-label

In distinguishing between firm strategies for developing new products, a pioneer firm will be more likely to rely on its ______, whereas a follower firm will be more likely to ______ for ideas.

R&D department; scan the market

A firm that joins with other firms as well as government and educational institutions to research a costly new technology is participating in which of the following?

Research consortium

Manufacturers tend to manage their own brands because it allows them to ______.

Retain control over their marketing strategies

_______engineering refers to taking apart a competitor's product, analyzing it, and creating an improved product that does not infringe on the competitor's patents (if any exist).

Reverse

The _______ packaging is the exterior wrapper that contains the product as well as the UPC label used by retailers.

Secondary

Manufacturer brands such as Kraft and Nike are owned and managed by whom?

The Manufacturer

What is the most likely result of a co-branding effort between two brands that have completely different customers?

The entire effort will fail for both brands.

Crucial to the success of new products are early adopters, who are responsible for influencing what?

The other three categories of consumers

The packaging that the consumer uses is known as ______.

The primary package

How do brands improve consumers' shopping experience?

They help shoppers distinguish between similar products. They indicate a certain level of quality. They make it easier to decide which products to buy.

While new products can become huge success stories, they have a high failure rate. In many cases imitators capitalize on the ______ of pioneers and subsequently gain advantage in the market.

Weaknesses

Using the diffusion of innovation theory, what can a firm can predict?

Which consumers will buy a new product immediately and which will buy it later

What can marketers learn from the diffusion of innovation theory?

Which markets are likely to be most receptive to new products or services. The rate at which consumers are likely to adopt a new product or service.

Laggards

Will not buy one until something newer has come along

Early Adopters

Will wait a week or two and read several reviews before buying

Early Majority

Will wait til they are sure it works well and that they will be able to use it

Innovators

Would line up outside the store to be the first to buy it

When consumers see new packaging on a product that is otherwise untouched, they tend to ______.

be more interested in trying the product

Because they include information such as ingredients, nutrition, and the product benefits to a consumer, labels can be considered ______ tools.

communication

Trialability and _______ refer to how complicated a product is and how easy or hard it is to try.

complexity

Sometimes, firms have difficulty moving through the brainstorming process themselves. When this occurs, they can hire outside firms such as IDEO, which help to create an environment that is conducive to ______.

creativity

Risks in co-branding include:

customers for the two brands being too different conflicts of interest between the co-brands

Whenever a product has a ______ level of complexity, it will consequently be ______ to try.

low; easy

Manufacturer brands such as Nike and Coca-Cola are also known as ______ brands.

national

The element of a product that is used both to physically protect and to market the item is the ______.

packaging

A firm's __ and __ department consists of scientists who work to solve complex problems and develop new

research and development

The ______ department can be considered an investment into a company's future, in which scientists work to solve problems and develop new ideas.

research and development

A product's exterior wrapper or exterior carton that contains additional product information is known as the ______.

secondary package

Early adopters, although not as fast as innovators, are quick to purchase a new product or service. Identify all of the following characteristics that are typically associated with early adopters.

tend to be opinion leaders of particular product categories are less risk seeking than innovators

Brands have value as corporate assets and the "value of the brand" refers to ______.

the earning potential of the brand over the next year

Licensing is an effective way for a brand to improve its ______.

visibility