MKTG 370 - Exam 2 Chapter 11

When marketers carefully develop a set of product attributes such as the brand name, features/design, and quality level of an offering, they are developing the

Actual Product. Marketers build upon the core customer value to deliver the actual product by determining the brand name, features/design, quality level, and packaging.

If consumers think that the discount store with the lowest prices on food is going to have the lowest prices on all goods, the discount store has achieved positive:

Brand Association. Brand association reflects the mental links that consumers make between a brand and its key product attributes.

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is referred to as

Brand Equity Brand equity represents the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service. Like the physical possessions of a firm, brands are assets that can be managed to increase value.

The value of a brand can be determined by looking at its assets and liabilities. The result of this calculation is:

Brand Equity. Brand equity is the set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service.

When one firm contracts with another to use a brand name, logo, symbol or character for a negotiated fee, this is known as _____________________.

Brand licensing. Brand licensing is a major economic activity with more than $100 billion in sales of toys, apparel, accessories and entertainment products.

_____involves a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.

Brand licensing. By definition, a licensed brand is one for which there is a contractual arrangement between firms, whereby one firm allows another to use its brand name, logo, symbols, and/or characters in exchange for a negotiated fee.

Companies like Tiffany's go to great lengths to protect themselves through the use of trademarks and copyrights. This best represents which of the following advantages of branding?

Brands are assets. To support its brands, a destination for consumers looking for "the best," Tiffany works constantly to protect the value of its iconic image as a prized asset.

______________ is the practice of marketing two brands together on the same package or promotion.

Cobranding. Cobranding can enhance consumers' perceptions of product quality or be a prelude to an acquisition strategy. There are risks if the brands are very different from each other.

When Megan purchased several bottles of Pepsi beverages and snacks to bring to her family's holiday celebration, it represented the purchase of

Consumer Products Consumer products are those goods purchased by people for their personal use.

When the bicycle manufacturer, Trek determined that some consumers use bikes for green transportation, whereas others use them for a thrilling hobby, they were most likely assessing the _____ of its bicycles to consumers.

Core Customer Value. The core customer value comprises the basic problem-solving benefits that consumers seek in a product.

The primary federal agency that review food and package labels to ensure that the claims made by the manufacturer are true is the

Food and Drug Administration. The Food and Drug Administration is the primary federal agency that reviews food and package labels to ensure that the claims made by the manufacturer are true.

Nike, KitchenAid and Sony are all examples of the use of _____ brands.

Manufacturer.

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

Manufacturer. The majority of the brands marketing in the United States are manufacturer brands, and manufacturing firms spend millions of dollars each year to promote their brands.

There are four categories of ______________ brands: premium, generic, copycat and exclusive cobrands.

Private-Label. Private-label brands are also known as store brands, house brands or own brands. Retailers may use these brands to establish a distinctive identity.

Kellogg's has a variety of brands in its cookies and crackers _____, including Cheez-Its, Keebler Townhouse Club crackers, Famous Amos cookies, and Keebler Fudge Shoppe.

Product Line. Product lines are groups of associated items that consumers tend to use together or think of as part of a group of similar products.

Francesca spent a lot of time shopping for her wedding dress, spending considerable time and effort visiting some of the finest bridal shops in the area. For Francesca, her wedding dress is a(n) _____ product.

Specialty. Specialty products are those toward which consumers expend considerable time and effort searching for the best suppliers.

Insurance companies expend a lot of effort marketing their offerings, mainly due to the fact that insurance is _____ that consumers don't normally think about much.

an Unsought Product. Unsought products and services are those, which consumers either do not normally think of buying or do not know about. Because of their very nature, these products require lots of marketing effort and various forms of promotion.

In a failed attempt at extending its brand to a new product line, Bic introduced a line of disposable underwear. The brand extension adversely affected consumers' perceptions about its current product lines, this could lead to

brand dilution. Unsuccessful brand extensions can dilute brand equity, leading to brand dilution. This occurs when the brand extension adversely affects consumer perceptions about the attributes the core brand is believed to hold.

If a firm deletes an entire product line, it has

decreased its breadth. Sometimes it is necessary for firms to delete entire product lines, which decreases breadth.

From time to time it is necessary for marketers to _______________ in order to realign resources.

delete product lines or categories. Deleting product lines or categories are difficult decisions, especially after a marketer has spent considerable sums building consumer interest and loyalty, but sometimes it is necessary in order to realign resources.

In response to increased consumer demand for healthful beverages, companies like Coca-Cola and Pepsi introduced new product lines like fruit juice to _____ their product mix.

increase the breadth of Companies increase the breadth of their product mixes to capitalize on changing consumer preferences by adding new product lines to their current product mixes.

Poland Springs produces a variety of bottled water beverages, and as the market continues to show growth potential for new flavors and varieties of bottled water, the company should _____ its product lines.

increase the depth of Companies increase the depth of their product lines to address changing consumer preferences by adding new flavors and varieties to their current offerings.

The _________ package is the one the consumer uses, while the _____________ package is wrapper or exterior carton that provides additional information like the UPC label and the opportunity for the marketing to convey the brand's positioning.

primary; secondary

As the size of retail firms has increased through growth and consolidation, more retailers have developed_____ merchandise,which they use to establish a distinctive identity.

private-label In recent years, as the size of retail firms has increased through growth and consolidation, more retailers have the scale economies to develop private-label merchandise and use this merchandise to establish a distinctive identity.

A product line is often made up of multiple:

product categories. Colgate-Palmolive has five product lines and varying numbers of product categories within each product line.

Introduced in 1920, Band-Aid now has more than 40 products for first aid, including adhesive bandages and the Liquid Bandage. Band-Aid has, over the years, increased its

product line depth. Adding new products to an existing product line (first aid) is increasing its depth. Using the same brand name in a different product line would be an increase in the product mix's breadth, or brand extension.

The SKU is the:

smallest product unit, used for inventory control. Each individual item is classified using stock keeping units.