question

the stages a new product goes thru in the marketplace: 1. introduction 2. growth 3. maturity 4. decline

answer

product life cycle

question

when a product is introduced to its intended target market -sales grow slowly and profit is minimal -large investment costs in product development -marketing objective for the company is to create customer awareness and stimulate trial (the initial purchase of a product by a consumer) -advertising and promo expenditures are made to stimulate primary demand (desire for the product class rather than for a specific brand)

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introduction stage of the product life cycle

question

advertising and other promotion tools to build awareness and stimulate product trial among consumers

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what do companies spend heavily on in the intro stage of the product life cycle?

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it is the desire for a product class rather than for a specific brand -since there are few competitors with the same product, advertising and promotion is made to stimulate this

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what is primary demand and why is it part of the intro stage of the product life cycle?

question

selective demand (the preference for a specific brand)

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during the introduction stage of the product life cycle, as more competitors launch their own products and the product progresses a company focuses attention on ______

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selective= preference for a specific brand primary=desire for the product class

answer

difference between selective demand and primary demand

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High initial price= part of a skimming strategy to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers Low initial price= to discourage competitive entry, a company uses penetration pricing

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during introduction, pricing can be either high or low

question

skimming strategy

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what kind of pricing strategy does this illustrate? "we hit fast, high price"

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tends to attract competitors eager to enter the market because they see the opportunity for profit -high initial price

answer

skimming strategy

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pricing strategy to help build unit volume but a company must monitor unit costs -low initial price

answer

penetration pricing

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characterized by rapid increases in sales -competitors appear in this stage -more aggressive pricing because of the increase in competition -profit peaks during this stage -product sales in the growth stage grow at an increasing rate because of new people trying or using the product and a growing proportion of repeat purchasers -changes appear to help differentiate a company's brand from those of competitors -important to gain as much distribution for the product as possible

answer

growth stage of the product life cycle

question

-an improved version -new features added to the original design

answer

what kind of changes appear in the growth stage to help differentiate a company's brand from those of competitors?

question

characterized by a slowing of total industry sales or product class revenue -marginal competitors leave the market -most consumers are repeat purchasers of the item or have tried and abondend it -sales increase at a decreasing rate as fewer buyers enter the market -profit declines due to fierce price competition -marketing attention is directed toward holding market share thru further product differentiation and finding new buyers

answer

maturity stage of the product life cycle

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occurs when sales drop -product enters this stage not because of any wrong strategy on the part of companies but because of enviornmental changes

answer

decline stage of the product life cycle

question

decline

answer

digital music players pushed compact discs into what stage?

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decline

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products in the ______ stage tend to consume disproportionate share of management and financial resources relative to heir future worth

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1. deletion 2. harvesting

answer

what are the 2 strategies a company will follow to handle a declining product?

question

dropping the product from the company's product line -most drastic strategy because a residual core of consumers still consume/use the product

answer

product deletion (strategy to handle a declining product)

question

when a company retains the product but reduces marketing costs -the product continues to be offered but the salespeople don't allocate time in selling nor advertising dollars purpose= to maintain the ability to meet customer requests

answer

harvesting (strategy to handle a declining product)

question

harvesting

answer

coca cola still sells tab with is the 1st diet cola to a small group of die-hard fans. what strategy does this illustrate?

question

a) gain awareness b) stress differentiation c) maintain brand loyalty d) harvesting, deletion

answer

Marketing objectives for the product life cycle: a) Introduction b) Growth c) Maturity d) Decline

question

introduction

answer

few competition, one product, skimming or penetration pricing, inform and educate=promotion, and limited distribution what stage does this illustrate

question

growth

answer

more competition, more versions of the product, gain market share, promotion=stress points of difference, and more outlets (place/distribution) what stage does this illustrate?

question

maturity

answer

alot of competition, full product line, defend market share/profit=price strategy, promo=reminder-oriented, and maximum outlets what stage does this illustrate?

question

decline

answer

reduced competition, product strategy=best sellers, price strategy=stay profitable, minimal promotion, and fewer outlets what stage does this illustrate?

question

1. their length 2. the shape of their sales curve 3. the rate at which consumers adopt products

answer

what are 3 important aspects of the product life cycle?

question

consumer products

answer

____ products have a shorter life cycle than business products

question

technological

answer

____ change tends to shorten product life cycles as new-product innovation replaces existing products

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one for which significant customer education is required and there is an extended intro period

answer

high learning product

question

high learning product

answer

personal computers had what kind of life cycle curve because consumers had to learn the benefits of owning the product and be educated in a new way of performing familiar tasks?

question

sales begin immediately because little learning is required by the consumer, and the benefits of purchase are readily understood -product can be easily imitated by competitors so the marketing strategy is to broaden distribution quickly

answer

low learning product

question

frequently appear for women and men apparel -products are introduced, decline, and then seem to return -length of the cycle may be months, years, or decades

answer

fashion product

question

experiences rapid sales on intro and then equally rapid decline -typically novelties and have a short life cycle

answer

fad product

question

diffusion of innovaiton

answer

a product diffuses, or spreads, thru the population, a concept called ______

question

-usage barriers (the product isn't compatabile with existing habits) -value barriers (the products provides no incentive to change) -risk barriers ( physical, economic, or social) -psychological barriers (cultural differences or image)

answer

common reasons for resisting a product in the introduction stage:

question

innovators

answer

what does this describe? venturesome higher educated use mutliple info sources

question

early adopters

answer

what does this describe? leaders in social setting slightly above average education

question

early majority

answer

what does this describe? deliberate many informal social contacts

question

late majority

answer

what does this describe? skeptical below average social status

question

laggards

answer

what does this describe? fear of debt neighbors and friends are info sources

question

by providing warranties, money back gaurantees, extensive usage instructions, free samples, and demonstrations

answer

how do companies attempt to overcome usage, value, risk, and pyschological barriers?

question

1. modifying the product 2. modifying the market 3. repositioning the product

answer

what are 3 ways to manage a product thru its life cycle?

question

a.k.a brand manager -manages the marketing efforts for a close-knit family of products -manage existing products thru the stages of the life cycle -develop and execute a marketing program for the product line -engage in data analysis related to their products/brands

answer

role of the product manager in the product life cycle

question

1. category of development index (CDI) 2. brand development index (BDI)

answer

how do product managers supplement sales, market share, and profit trend data?

question

product modification

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_____ involves altering a product's characteristic such as its quality, performance, or appearance to increase the products value to customers and to increase sales

question

modifying the product -changing product characteristics and giving a sense of a revised product

answer

what does this illustrate? P&G revamped pantene shampoo and conditioner with a new vitamin formula and relaunched the brand with a multimillion dollar ad and promo campaign

question

market modification

answer

______ is when a company tried to find new customers, increase a product's use among existing customers, or creating new use situations

question

modifying the market -finding new customers

answer

produce companies have begun marketing and packing prunes as dried plums to attract younger buyers. what does this illustrate?

question

modifying the market -increasing product use

answer

because soup consumption rises in the winter and declines during the summer, Campbell soup Company now advertises more heavily in warm months to encourage consumers to think of soup as more than a cold weather food. what does this illustrate

question

modifying the market -creating a new use situation

answer

Dockers was originally intended as a single pant for every situation but now promotes different looks for different usage situations: work, weekend, dress and golf what does this illustrate?

question

product repositioning

answer

_________ changes the place a product occupies in a consumer's mind relative to competitive products

question

repositioned -reacting to a competitors position

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new balance successfully _______ its athletic shoes to focus on fit, durability, and comfort rather than competing head on against Nike on fashion and professional sports

question

repositioned -reaching a new market

answer

brittish viewed iced tea as leftover hot tea thats not suitable for drinking so the company made its tea carbonated and ______ as a cold soft drink to compete as a carbonated beverage

question

repositioning a product -catching a rising trend

answer

growing consumer interest in foods that offer health and dietary benefits is why Quaker Oats claims that their oatmeal is part of a low saturated fat and low cholesterol diet what does this illustrate

question

involves adding value to the product (or line) thru additional features or higher quality material ex= JCPenny adding a designer clothes section to their stores

answer

trading up

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involves reducing the number of features, quality, or price -exists when companies engage in downsizing (reducing the package content without changing package size and maintaing or increasing the package price)

answer

trading down

question

changing the value offered--> Trading Down

answer

airlines have limited their legroom and snack service. this is an example of what type of repositioning?

question

an organization uses a name, phrase, design, symbols or combo of these to identify products and distinguish them from competitors

answer

branding

question

any word, device (design, sound, shape, or color), or combo of these to distinguish a seller's goods or services

answer

brand name

question

brand name

answer

the logo for apple's computer is a _____ what that can't be spoken

question

by recognizing competing products allows them to be more efficient shoppers: -recognize and avoid products with which they are dissatisfied -become loyal to another, more satisfying brand

answer

how do consumers benefit from branding?

question

a set of human characteristics associate with a brand name -consumers assign personality traits to products and choose brands that are consistent with their own or desired self-image

answer

successful and established brands take on a brand personality. what is that?

question

brand personality

answer

Harley Davidson links to masculinity and rugged individualism what does this illustrate?

question

the added value a brand name gives to a product beyond the functional benefits provided

answer

brand equity

question

1. provides a competitive advantage 2. consumers are often willing to pay a higher price for a product with brand equity

answer

what are the advantages of brand equity?

question

brand equity

answer

________ is carefully crafted and nurtured by marketing programs that forge strong, favorable and unique customer associations and experiences with a brand

question

what they have learned, felt, seen, and heard about a brand over time

answer

brand equity resides in the minds of consumers and results from

question

1. develop positive brand awareness and an association of the brand in consumers' minds with a product class or need to give the brand an identity 2. establish a brand's meaning in the minds of consumers 3. elicit the proper consumer responses to a brand's identity and meaning (place attention on how consumers think/feel about a brand) 4. create consumer-brand connection evident in an intense, active loyalty relationship between consumers and the brand

answer

steps of creating brand equity:

question

1. a functional, performance related dimension 2. an abstract, imagery related dimension

answer

meaning arises from what a brand stands for and has 2 dimensions:

question

a) focuses on a brand's perceived quality, credibility, and superiority relative to other brands b) relates to the consumer's emotional reaction to a brand

answer

thinking vs. feeling by consumers about a brand

question

pyschological bond that characterizes a consumer-brand connection and the personal identification customers have with the brand

answer

the final and most difficult stop of creating brand equity is a deep ______

question

assets

answer

the recognition that brands are ________ is apparent in the decision to buy and sell brands

question

a contractual agreement whereby one company (licensor) allows its brand name or trademark to be used with products or services offered by another company (licensee) for a royalty or fee

answer

brand licensing

question

1. name should suggest the product benefits 2. should be memorable,distinctive, and positive 3. should fit the company or product image 4. should have no legal or regulatory restrictions 5. should be simple and emotional

answer

5 criteria are mentioned for selecting a good brand name

question

suggests the product benefits

answer

Tidy bowl (toilet cleaner, Easy off (oven cleaner), and glass plus (glass cleaner) all meet what criteria for brand names

question

memorable, distinctive, and positive

answer

Mustang and the thunderbird meet what criteria for a brand name

question

fits the company or product image

answer

diehard and eveready suggest reliability and longevity which are 2 qualities consumers want in a battery. what criteria for a brand name does this meet?

question

a) infringement suits b) improper use of words

answer

legal restrictions produce ____a____ and regulatory restrictions arise thru ___b____ when selecting a brand name

question

should have no legal or regulatory restrictions

answer

kellogg's heartwise cereal had to be changes to fiberwise because the FDA discourages the use of the word heart in food brand names. what criteria of selecting brand names does this illustrate

question

should be emotional

answer

joy and obsession perfumes meet what criteria of selecting brand names?

question

simple

answer

bold laundry detergent matches what criteria of selecting brand names?

question

non-meaningful (because it doesn't have any prior impressions or undesirable images among diverse world population of different languages and cultures) ex: 7up is bad because it is a phrase that means "death thru drinking" in china

answer

in the development of brand names for international use, having a _______ brand name has been considered a benefit

question

a company uses one brand name for all its products in a product class -sometimes called family branding or corporate branding when the company's trade name is used

answer

multiproduct branding strategy

question

multiproduct branding strategy

answer

what kind of branding strategy does this illustrate? Samsung's company trade name and brand name are identical

question

1. capitalizing on brand equity -consumers who have a good experience with the product will transfer this favorable attitude to other items in the product class with the same name 2. lower advertising and promotion costs -the same name is used on all products, thus raising the level of brand awareness

answer

advantage of multiproduct branding strategy

question

multiproduct branding strategy

answer

_______ strategy makes possible product line extensions, the practice of using a current brand name to enter a new market segment in its product class

question

multiproduct branding strategy

answer

what kind of strategy is this? Toro snowblowers Toro lawn mowers Toro garden hoses

question

subbranding

answer

some multiproduct branding companies employ ________ which combines corporate or family brand with a new brand to distinguish a part of its product line from others ex= gatorade introduced G2

question

a)brand extension b)too many uses for one brand name can dilute the meaning of a brand for consumers

answer

a strong brand equity allows for ___a____, the practice of using a current brand name to enter a different product class b) what is the risk of this?

question

brand extension

answer

Honda's established name for cars has extended easily to snowblowers, lawn mowers and snowmobiles. what does this illustrate?

question

involves giving each product a distinct name -useful strategy when each brand is intended for a different market segment advantage= each brand is unique to each market segment and there is no risk that a product failure will affect other products in the line disadvantage= complexity and expense to implement this strategy can sometimes outweigh the benefits

answer

multibranding strategy and their advantages/disadvantages

question

multibranding strategy

answer

P&G makes: Tide Cheer Ivory Snow Bold what does strategy is this?

question

fighting brands -their chief purpose is to confront competitor brands

answer

multibrand companies sometimes introduce new product brands as defensive moves to counteract competition. what is this called?

question

fighting brands

answer

ford launched its fusion brand to halt the defection of ford owners who were buying competitors midsized cars. what does this illustrate

question

advertising and promotion -the company must generate awareness among consumers and retailers for each new brand name without the benefit of any previous impressions

answer

compared with multiproduct strategy, ________ and ______ costs tend to be higher with multibranding strategy

question

often called private labeling or reseller branding -manufactures products but sells them under the brand name of a wholesaler or retailer -typically produces high profits for manufacturers and resellers -retailer brands that are exclusive to a particular name

answer

private branding strategy

question

private branding strategy

answer

costco sells kirkland products. what kind of strategy is this

question

firm markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market

answer

mixed branding strategy

question

mixed branding strategy

answer

elizabeth arden sells its elizabeth arden brand thru department stores and a line of skin care products at walmart with the "skinsimple" brand name what kind of strategy is this?

question

any container in which it is offered for sale and on which label info is conveyed

answer

what does the packaging component of a product refer to?

question

an integral part of the package and typically identifies the product or brand, who made it where and when it was made, how it is to be used, and package contents/ingredients

answer

what is a label?

question

packaging and labeling

answer

____ and _____ are very expensive. despite the cost, they are essential because both provide important info for the manufacturer, retailer, and ultimate consumer

question

the label info conveyed to the consumer (such as directions on how, where, when to use the product and the source/composition of the product) which is needed to satisfy legal requirements of product disclosure

answer

what are the communication benefits of packaging?

question

plays functional role such as storage, convenience, protection, or product quality -convenience dimension in packaging is increasingly important

answer

what are the functional benefits of packaging?

question

functional benefit

answer

kraft miracle whip salad dressing is sold in a squeeze bottle to meet what benefit of packaging?

question

functional

answer

nabisco offers portion control package sizes for weight conscious consumers meet what benefit of packaging?

question

communication benefits -packaged foods contain informative recipes to promote usage of the product

answer

campbell soup estimates that the green bean casserole recipe on its cream of mushroom soup can accounts for 20 million in its soup sales each year. what benefit of packaging does this illustrate?

question

functional

answer

Pringles are in cylindrical packaging to offer uniform chips and minimal breakage what benefit of packaging does this illustrate?

question

package and label shape, color, and graphics distinguish one brand from another, convey a brand's positioning, and build brand equity -packaging/labeling enhance brand recognition and facilitate the formation of strong, favorable, and unique brand associations

answer

what are the perceptual benefits of packaging?

question

1. the continuing need to connect with customers 2. environmental concerns 3. health, safety, and security issues 4. cost reduction

answer

what 4 challenges do package and label designers face?

question

environmental concerns

answer

coca-cola has decreased the amount of plastic in their beverage bottles to reduce solid waster illustrates what packaging and labeling challenge/response

question

connecting with customers

answer

chips ahoy discovered consumers transferred cookies to a cookie jar for easier access and avoid staleness so they created a new package with resealable opening illustrates what packaging and labeling challenge/response

question

health, safety, and security issues

answer

child proof caps on pharmaceutical products and household cleaners illustrates what packaging and labeling challenge/response?

question

cost reduction

answer

as the cost of materials rise, companies are constantly challenged to find innovative ways to cut packaging costs while delivering value to their customers. what packaging and labeling challenge/response

question

expanding the 4 P's framework to include productivity, people, physical environment, and process

answer

eight Ps of services marketing

question

exclusivity -services can't be patented brand name -services are intangible (therefore, more difficult to describe) -the brand name/logo is important in consumer decisions capacity management

answer

3 aspects of the product/service element of the mix that warrant special attention when dealing with services:

question

brand names

answer

_____ make the abstract nature of services more concrete

question

integrating the service component of the marketing mix with efforts to influence consumer demand

answer

capacity management

question

1. to affect consumer perceptions -price can indicate the quality of service ex=don't want a $100 surgery 2. to be used in capacity management -important to movie theaters, airlines, restaurants, and hotels

answer

price plays 2 essential roles:

question

charging different prices during different times of the day or days of the week to reflect variations in demand for the service -part of capacity management

answer

off-peak pricing

question

place (distribution)

answer

the value of convenient distribution is being recognized H&R block uses multiple locations for distribution of services represents what P?

question

availability, location, consistent quality, and efficient, courteous service

answer

in promotion for a service it is important to stress what?

question

people -the nature of the interaction between employees and customers strongly influences the customer's perceptions of the service experience

answer

many services depend on ______ for the creation and delivery of the customer service experience

question

customer experience management (CEM) -the process of managing the entire customer experience with the company -process should be intentional and planned -consistent so that every experience is similar -differentiated from other service offerings -relevant and valuable to the target market

answer

customers will often judge the quality of the service experience based on the performance of the people providing the service. this aspect has led to what concept?

question

the appearance of the environment in which the service is delivered and where the firm and customer interact can influence the customer's perception of the service

answer

the physical environment aspect of the 8 P's of service marketing

question

impression, or evidence management

answer

service firms need to manage physical evidence carefully and systematically to convey the proper impression of the service to the customer. this is referred to as?

question

refers to the actual procedures, mechanisms, and flow of activities by which the service is created and delivered

answer

the process aspect of the 8 P's of service marketing

question

1. suggestive -energizer says that it will last a while 2. fitting - if its eco-friendly may include "eco" in the name 3. memorable 4. simple -generally more memorable when its simple 5. no restriction

answer

companies know criteria will influence the success of their products: 5 criteria

question

1. sound -individual letters -parts of words 2. length/memorability 3. meaning 4. regulation

answer

whats a name?

question

multiproduct branding

answer

special K has products in a variety of different categories under the same brand name. what kind of strategy is this?

question

multiproduct branding

answer

if i see special k protein bar I assume its lower calories compared to other brands even if i know nothing about the bar (heuristics) and this type of strategy is an automatic way to increase sales

question

multibranding strategy -their reaching out to 3 different types of customers

answer

gymboree has Janie and Jack and Crazy 8 kids clothing what kind of strategy is this?

question

private branding

answer

what kind of strategy would they be promoting their own brand and their own products -therefore, cost savings and profit margins increase

question

packaging

answer

communication, function, perception illustrate what?

question

communication aspect of packaging

answer

if we see a blue package of coffee we know its Folger's Coffee what does this illustrate?

question

function

answer

adding a zipper seal to the product so that is stays fresh matches what aspect of packaging?

question

perception

answer

since this product is healthy we will use the color green. what aspect of packaging is this

question

product development

answer

what are you doing when you are loosing money because you are putting alot of money into research and development

question

introduction

answer

what stage in the product life cycle is it if you have alot of spending on inventory because you are making the product and people must learn about the existence of the product

question

growth

answer

what stage in the product life cycle if more come into the market and things start to catch on more quickly -start making money -competition is there but not as intense

question

maturity

answer

what stage in the product life cycle is it if its the most competitive -spend more money to remain competitive -sales increase but profits decrease because it costs more to get those customers -add features, improve products -most products are in this phase

question

decline

answer

what stage in the product life cycle is it if fewer people buy -popularity decreases (maybe because it has been replaced or tastes and preferences has changed) -company must decide whether to stick with it or move on

question

innovators

answer

who does this describe? well above resources want latest technology (not a social thing, they just want better way to do anything) very small portion of people

question

early adopters

answer

who does this describe? above average resources like new stuff for social reasons -want friends to know

question

early majority

answer

who does this describe? big portion of the population like idea because friend told them (opinion leader likes it) wants to wait for bugs to get worked out (ex=dont want the first model of a car)

question

late majority

answer

who does this describe? less resources/capability of buying new things more reluctant to adopt new technology want to make sure its inevitable want more choice (wait to buy until later in the game once prices have decreased and theres more competition)

question

laggards

answer

who does this describe? very reluctant to change may be too expensive to make a change

question

1. complexity 2. compatibility 3. relative advantage 4. observability 5. trial-ability

answer

aspects of the rate of adoption

question

1. complexity -not hard 2. compatibility -makes people's lives easier 3. relative advantage -cheaper than going to starbucks 4. observability -can see how it works 5. trial-ability -different stores and doctor offices have these machines and so you can try it and see how it works

answer

aspects of the rate of adoption for Keruig Coffee

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