question

Product

answer

a broad term that describes not only physical, tangible goods, but also products that are neither physical nor tangible like services or an idea

question

Types of products

answer

goods, services, ideas, consumers, business

question

consumer products

answer

products targeted to the consumer market are geared to meet consumers' needs when they are purchasing goods or services for their own or their families' personal use

question

consumer product categories

answer

convenience, shopping, specialty

question

business products

answer

business products can be categorizes as: installations, accessory equipment, raw materials, component parts, process materials, MRO supplies and business services

question

Type of business product categories

answer

installations, accessory equipment, raw materials, component parts, process materials, MRO supplies, Business Services

question

product mix

answer

the overall group of products that a firm offers is referred to as its product mix; combination of product items, product categories and product lines

question

Developing & Managing Products

answer

The Product mix can be narrow or broad; product item is a product category; product line is deep or shallow

question

growth strategies

answer

(1) add new product strategies, (2) add new product items within product lines

question

Importance of new products

answer

companies introduce new products to: increase sales, increase market share or increase presence in the marketplace; these are continuous verses discontinuous innovations

question

New product development process

answer

(1) idea generation, (2) screening, (3) concept testing, (4) business analysis, (5) product development, (6) test marketing, (7) commercialization

question

Brand

answer

a name, term, design, symbol or any other feature that identifies one seller's goods or services as distinct from those of other sellers; closely tied to promotion strategy

question

Product strategy consideration

answer

Branding: Brand Elements, Brand Equity, Packaging, Labeling

question

Brand Elements

answer

brand name, brand mark, manufacturer's brand, private label brand, generic product, family brands, individual brands

question

special considerations in managing services

answer

intangibility, inseparability, perishability, heterogeneity

question

product life cycle

answer

products progress through a lifestyle that can be viewed in four stages: introduction, growth, maturity & decline

question

product adoption

answer

factors that influence this are: complexity, compatibility, relative advantage, observability and trialability; products must be adopted to be prfitable

question

Product adoption

answer

complexity, comparability, relative advantage, observability, trialability

question

diffusion of innovation

answer

innovators, early adopters, early and late majority, laggards

question

promotion

answer

the communications arm of marketing. It is the way that a marketing organization informs, persuades and reminds the target market about the products, company brands, company or people

question

Promotional mix (tools)

answer

includes advertising, personal selling, sales promotion and public relations

question

Push Promotional Strategy

answer

used to build demand in within the distribution channel. companies can also direct promotional activities to wholesalers and retailers to build demand so that the retailer will push the products to the end customer

question

Pull Promotional Strategy

answer

companies that advertise nationally branded products directly to consumers use this method influencing them to ask for the branded product at the retailer

question

Communication Process

answer

consist of a sender, a channel and a receiver. The sender receives a message that is encoded using signs, symbols, words, colors, etc. The receiver, in turn attempts to decode the message. Effective communication takes place when the receiver decodes the message that was intended by the sender.

question

integrated marketing communication

answer

promotional planning, budgeting, managing and controlling

question

product is a broad term used to describe only those tangible physical goods that are targeted to either consumers or businesses

answer

false; product is a broad term that describes, not only physical, tangible goods, but also products that are neither physical nor tangible like services. In addition to goods and services, ideas are also considered to be a product that can be marketed to specific groups or targeted customers.

question

examples of consumer shopping products includes hair salons, furniture and jewelry

answer

true; shopping products include such products as these. For products such as these, consumers will expend some effort to compare brands and invest some time to investigate product features and price points

question

copies or computer printers are examples of business services

answer

false; copiers and printers are examples of accessory equipment - inexpensive, non-complex equipment purchased frequently. Examples of business services include processes required for running the business that are often outsourced to other businesses, such as payroll or cleaning services

question

the correct term used to describe the overall group of products that a firm offers is product category

answer

false; Most organizations market more than a single product. The overall groups of products that a firm offers is referred to as its product mix. A company's product mix consists of a combination of product items, product categories and product lines

question

A manufacturer's brand is also called a national brand

answer

true; one branding alternative is a manufacturer's brand (aka national brand). These brands are owned and controlled by a producer and they may/may not actually be distributed nationally. Examples of a manufacturer's brand include Sony, Ralph Lauren and Heinz

question

When Lucy went to Great Cuts, one salon in a chain, and thought the stylist gave her a poor quality cut, she made the assumption that all Great Cuts salons had poor quality service. This illustrates the problem of intangibility in services

answer

False; intangibility means that a service, unlike a good, cannot be held, touched, examined or taken home and put on a shelf for the customer's future use. Inseperability implies that service marketers must manage processes to ensure that the individual service provider performs the service at the same time and in the manner that the customer expects

question

In the maturity phase of the Product Life Cycle, companies often make adjustments to the product mix such as improvements and product line extensions

answer

true; this stage of the product life cycle is split into two parts - early and late maturity. Early in maturity, industry sales remain high but growth in industry sales slow. Industry profits have begun to decline. Companies continue to jockey for position and begin to make adjustments to the product mix - improvements, extensions and adaptations

question

One reason that advertising can be ineffective is because the message sender (e.g. the marketer) can make mistakes by encoding the message with symbols that the receiver (e.g. the customer) may not understand

answer

true;a message is encoded using signs, symbols, words, colors, and/or music to effectively convey a message via some form of channel (TV/Radio/Internet) to a receiver, who in turn decodes the message that was intended by the sender

question

publicity can correctly be called "free advertising"

answer

false; publicity is often misunderstood PR tool; it is frequently referred to as free advertising, which is a misnomer. First, publicity is not advertising. Second, even though publicity is not purchased, it is also not free. Businesses employ PR professionals to build positive publicity

question

The idea behind integrated Marketing Communication is that people are more likely to remember a message when a single message is consistently communicated across a variety of promotional channels

answer

true; an increasingly competitive marketplace has convinced the marketing community of the need to plan promotional strategy using integrated marketing communications (IMC). IMC is "a planning process designed to ensure that all brand contacts received by a customer or prospect for a product or service are relevant to that person and consistent over time.

question

The most important of the 4 Ps

answer

product; all decisions about the product underlie all other decisions that relate to how the organization's product offering will be promoted, priced and dirstributed

question

Product categories

answer

convenience, shopping or specialty; how the consumer views the product drives the marketing strategy

question

convenience product

answer

relatively inexpensive product that a consumer purchases on a regular, routine basis (routine problem solving) without thought or effort - candy bars, toilet paper, soda, etc. found at gas stations/convenience stores

question

shopping products

answer

consumers will expend effort to compare brands and investigate the features and price before purchasing (hair salon, furniture, jewelry); producers choose specific retailers to carry the product that support the brands positioning

question

specialty products

answer

consumers expend time and effort; they want the brand due to the unique features and are not willing to substitute. Usually only one store will carry the brand (Tiffany Jewelry, Porsche Cars, Four Seasons Hotel)

question

business product categories

answer

installations, accessory equipment, raw materials component parts, process materials, MRO (Maintenance, Repair, and operating) supplies and business services; these categories drive the marketing mix to the needs of the target market

question

Installations

answer

major equipment or processes that are complex and expensive (telecommunications system for Toyota headquarters)

question

Accessory Equipment

answer

less expensive, less complex equipment purchased more frequently (copiers or computer printers)

question

Raw Materials

answer

the most basic materials used by producers (iron ore mined and used in the production of steel)

question

component parts

answer

products purchased in finished form from other suppliers (tire or sound systems)

question

process materials

answer

products used in production that become part of the finished product (sheet metal or plastic used in the car body)

question

MRO Supplies

answer

products used in production that do not become part of the finished product (light bulbs in the manufacturing plant, computer paper)

question

business services

answer

processes required in running the business that are often outsourced to other businesses (payroll, cleaning services)

question

product class

answer

category like home appliances

question

product category

answer

sub category of product class like kitchen products, laundry room products and whole home products

question

product lines

answer

sub category of product category like refrigerator, dishwasher, microwaves

question

product items

answer

the individual items sold; these are made up of the following characteristics: style, brand, and size

question

narrow product mix

answer

when the producer has a limited number of products (Whirlpool)

question

broad product mix

answer

when the producer has many product lines and categories (P&G)

question

product line depth

answer

the number of closely related product variations that exist within a single product line; depth is shallow when they have few product lines

question

companies introduce new products to

answer

increase sales, market share and/or presence in the marketplace

question

continuous innovation

answer

the product and the way the user uses the product has not changed, but options and features have

question

continuous/discontinuous innovation

answer

requires buyers to make changes to the way they buy and use the product

question

New Product Marketing Development Process

answer

used when developing new products: (1) idea generation, (2) screening, (3) concept testing, (4) business analysis, (5) product development, (6) test marketing, (7) commercialization; often depicted as a funnel shape model since 9 out of 10 new product ideas fail

question

AMA Brand Definition

answer

(a) name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark. A brand may identify one item, a family of items or all items of that seller If used for the firm as a whole, the preferred term is trade name

question

What is a brand

answer

a promise or an organization's comittment to its target market

question

brand elements

answer

brand name, brand mark

question

brand name

answer

the spoken part of the brand

question

brand mark

answer

the symbol or design associated with the brand

question

manufacturer's brand

answer

national brand; owned and controlled by a producer and may not be distributed nationally (heinz, Ralph Lauren). These are found in multiple retail locations and have consistent images, positioning and price points

question

private label brand

answer

aka private brands, store brands or distributor brands; owned or controlled by an intermediary, such as a distributor or a retailer. (Gap, Sears' Kenmore appliances); usually less expensive but reliable vs. manufacturer's brand

question

generic product

answer

not branding the product; no product is truly generic as it usually has the grocery store logo and branding on it

question

family brands

answer

not only identifies the trademark, but also the products (Whirlpool)

question

individual brands

answer

when a company has several brands and markets them differently (Proctor & Gamble Laundry detergent has multiple brands)

question

brand equity AMA

answer

"the value of a brand. From a consumer perspective, brand equity is based on consumer attitudes about positive brand attributes and favorable consequences of brand use" - the financial value of the brand

question

brand value

answer

how much the brand is worth based on a combination of awareness, loyalty, quality and association

question

Product Strategy

answer

Branding, Packaging

question

packaging

answer

packaging is what catches the consumer's eye; what differentiates it and influences the purchaser

question

labeling

answer

legal requirements and promotional

question

intangibility

answer

services; cannot be held, touched, examined or taken home and put on a shelf for the customer's future use. An act that takes place at a certain point in time. The challenge is to make it tangible

question

inseperability

answer

service that is both produced and consumed at the same time. Often referred to as a service encounter. ex. customer service center at a hotel

question

perishability

answer

fleeting nature of a service; if a hotel room is not filled, the opportunity to fill doesn't come back

question

heterogeneity

answer

aka variability; services are difficult to standardize; snickers bar will taste the same everywhere, where as service at a hair salon could differ between locations; marketers attempt to provide standardization across locations

question

Product Life Cycle

answer

(1) introduction, (2) Growth, (3) Maturity, (4) Decline; goal is to maintain sales and profitability for as long as possible

question

(1) introductory phase

answer

product is introduced to the market; contains few competitors, profit is usually negative

question

(2) growth

answer

industry grows as competitors enter the marketplace; customer demand increases

question

(3) maturity

answer

demand is saturated and the market can no longer support new entrants; early maturity - industry sales remain high but industry growth slows, companies begin to expand, improve, adapt to stay in the game. At the mid-point sales peak and then decline; usually measured in months

question

(4) Decline

answer

Strong companies remain in the market but must alter marketing strategies to remain profitable

question

an indication that the industry is moving from growth to maturity is the point at which

answer

profit peaks and begins to decline

question

adoption and difusion

answer

two concepts related to PLC

question

Increase adoption rate when

answer

see page 57

question

diffusion of innovation AMA definition

answer

"the process by which the use of an innovation is spread within a market group, over time and over various categories of adopters"; implies that a new product is an innovation even if the new product was an iteration

question

Adoption categories

answer

innovators, early adopters, early majority and late majority, laggards

question

innovators

answer

2.5% of adopters. Tend to be better educated, younger, less averse to risk. tend to influence others but should not be the main target of marketing

question

early adopters

answer

13.5% that marketers target early; tend to be opinion leaders and can easily influence others; most product marketers aim for this marketing strategy

question

early majority and late majority

answer

34% each for a total of 68%; both groups are critical to diffusion of innovation and influenced by the early adopters

question

laggards

answer

16% slowest group; rarely targeted by marketers since they are difficult to influence and slow to adopt. the product has usually already reached decline at this point

question

AIDA

answer

the process of influencing potential customers in the role of promotion

question

advertising AMA

answer

"the placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience about their products, services, organizations, or ideas" advertising is paid for by an identified sponsor and is usually communicated out

question

personal selling AMA

answer

"selling that involves a F2F interaction with the customer" particularly important for B2B selling

question

personal selling process

answer

pre-approach, approach, presentation, overcoming objections, closing the sale, and following up

question

sales promotion AMA

answer

"the media and non-media marketing pressure applied for a predetermined, limited period of time at the level of consumer, retailer, or wholesaler in order to stimulate trial, increase customer demand, or improve product availability" usually spent on incentives like sampling, coupons, rebates - acts as a temporary incentive to buy now

question

public relations AMA

answer

"that form of communication management that seeks to make use of publicity and other non-paid forms of promotion and information to influence the feelings, opinions, or beliefs about the company, its products or services or about the value of the product or service or the activities of the organization to buyers, prospects, or other stakeholders" PR is not free to the marketing organization; end result of good PR is positive public publicity

question

All promotional tools except __________ are under the control of the marketing organization

answer

publicity; this is under the control of the media

question

communication process

answer

sender, encodes, message, decodes, receiver, feedback to sender

question

sender

answer

initiates the message to communicate

question

encode

answer

message is transformed using signs, symbols, words, colors, and/or music to convey a message

question

channel

answer

the way the encoded message is delivered (TV, radio, paper mailing)

question

Noise

answer

things that make the message difficult to decode or get through a channel like static, slow internet, etc.

question

decode

answer

effective communication takes place when the receiver decoded the message intended by the sender

question

feedback

answer

sent back to the sender when the receiver successfully decoded the message like visiting the website or store

question

integrated marketing communications AMA

answer

"a planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time"

question

promotional planning

answer

most effective when developed after a review of a company's marketing plan and must share info like product, price, and where it can be purchased with the target market; also includes allocation of limited promotional dollars

question

Is the product line (mix) broad or narrow on abbott.com

answer

broad; their product mix includes a variety of product categories that are not closely related

question

Match the following business products with the standard B2B product categories: Cotton used in the production of denim

answer

raw materials. raw materials are the most basic materials used by producers

question

Match the following business products with the standard B2B product categories: Nuts, bolts and oil that keep machinery operating

answer

MRO Supplies; these are products used that do not become part of the finished product

question

Match the following business products with the standard B2B product categories: Computer chips for Dell Computer Co.

answer

Component Parts; products purchase in finished form from other suppliers

question

Match the following business products with the standard B2B product categories: computerized accounting and inventory control system for a major retailer

answer

installations; major equipment or processes that are complex and expensive like a telecommunications system

question

Match the following business products with the standard B2B product categories: thread and zipper in the production of jeans

answer

process materials; products used in the production that become part of the finished product

question

Match the following business products with the standard B2B product categories: landscaping and consulting

answer

business services; required in running the business but are often outsourced

question

Match the following business products with the standard B2B product categories: Lawn mowers and trimmers for a landscaping company

answer

accessory equipment; less expensive, less complex and is purchased more frequently

question

Classify each activity according to the type of promotional tool it represents: a coupon is printed in the local newspaper offering 20% off the purchase price of a pool heater if the consumer also buys pool cleaning equipment (a) advertising, (b) personal selling, (c) sales promotion, (d) public relations

answer

(c) sales promotion; the media and nonmedia marketing pressure applied for a predetermined, limited period of time at a level of consumer, retailer, or wholesaler in order to stimulate trial

question

Classify each activity according to the type of promotional tool it represents: direct mail letter inviting homeowners to call an 800 number for additional information (a) advertising, (b) personal selling, (c) sales promotion, (d) public relations

answer

(a) advertising; advertising is defined by the AMA as the "placement of announcements and persuasive messages in time and space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/or persuade members of a particular target market or audience about their products, services, organizations, or ideas"

question

Classify each activity according to the type of promotional tool it represents: company representatives give away drink cozies printed with the company name at a 5K benefit run (a) advertising, (b) personal selling, (c) sales promotion, (d) public relations

answer

(d) public relations; "that form of communication management that seeks to make use of publicity and other non-paid forms of promotion and information to influence the feelings, opinions or beliefs about the company, its products or services

question

Classify each activity according to the type of promotional tool it represents: a company representative visits the consumer's home to provide an estimate on purchasing solar panels to heat the pool (a) advertising, (b) personal selling, (c) sales promotion, (d) public relations

answer

(b) personal selling; "selling that involves face to face interaction with the customer"

question

who is the sender? (a)the newspaper, (b) TV, (c) the internet, (d) Splash!

answer

Splash!; the company is sending the message, the other choices are channels for sending the message

question

What is the message? (a)dolphins are mammals, (b) dolphins help clean pools, (c)Splash guarantees year-round use of your pool, (d) none of the above

answer

(c) Splash guarantees year-round use of your pool. Spash uses a cartoon dolphin as its company spokes character but other than that the dolphin has no relationship to the year-round use of the pool

question

what channel does the sender use to transmit the message? (a) TV, (b) Radio, (c) the newspaper, (d) the internet

answer

(c) the newspaper; Splash runs a full page ad in the local newspaper that is published once a week. The other channels may or may not be appropriate for Splash

question

What possible noise may interrupt the message? (a)static, (b) slow internet connection, (c) competing messages, (d) none of the above

answer

(c)competing message

question

Splash is looking for feedback in terms of a purchase for the pool heating service

answer

true; they hoped for result in the communication process is a purchase of a product or a service. In this case, a pool heating service

question

A product is: (a) a physical, tangible good like a car or a computer, (b) a service such as a pedicure or lawn maintenance, (c) an idea such as "Don't drink and drive", (d) all of the above

answer

(d) all of the above; product is a broad term that describes not only physical, tangible goods, but also products that are neither physical nor tangible such as services. In addition to goods and services, ideas are considered to be products that can be marketed to specific groups of targeted customers.

question

When P&G offers retailers such as Target an advertising allowance to encourage them to include the new Febreze product in their weekly advertising inserts. P&G's activity can best be described as (a) a pull promotional strategy, (b) personal selling, (c) a consumer promotion, (d) a push promotional strategy

answer

(d) a push promotional strategy; Companies use push promotional strategies that are intended to build demand within the distribution channel, while pull strategies target consumers

question

Jerry usually buys charmin toilet paper. If charmin isn't avialble he'd buy some other brand. To Jerry, charmin toilet paper is: (a) a specialty product, (b) a shopping product, (c) a convenience product, (d) an impulse item

answer

(c) a convenience product; this is a relatively inexpensive product that a consumer purchases on a regular, routine basis (routine problem solving), without much thought or effort. A specialty product involves time and effort as does a shopping product. D is fictious

question

In the product life cycle mode, a peak in industry profits indicates (a) movement out of the introductory phase, (b)the end of the growth phase, (c) moving from early to late maturity, (d) decline

answer

(b) the end of the growth phase; An industry profit peak is an indicator that the growth phase is over. In the introductory phase the industry contains few competitors and sales are just beginning to take hold. Early in maturity, industry sales remain high but growth in industry sales slows. Eventually, as customer demand evolves, new products are introduced and demand for existing products slows. Decline is the phase where industry sales fall to the point where it is no longer the company's best interest to continue to support the product

question

The two lines depicted in the Product Life Cycle model represent: (a) market share and promotional expenditures, (b) industry sales and industry profit, (c) product sales and product profit, (d) marginal cost and marginal revenue

answer

(b) industry sales and industry profit; the two lines do represent sales and profit, but for the entire industry not for a specific product

question

service organizations (e.g. Allstate Insurance) use service marks (e.g. the good hands symbol) to try to minimize (a) perishability, (b)intangibility, (c) heterogeneity, (d) inseparability

answer

(b) intangibility; This means that a service, unlike a good, cannot be held, touched, examined or taken home and put on a shelf for the customer's future use. Perishability describes the fleeting nature of the service. Heterogeneity means that the services are difficult to standardize. Inseparability means that a service is produced and consumed at the same time

question

The adopter category that most product marketers aim for in their marketing strategy is: (a) innovators, (b) early adopters, (c) early majority, (d) instigators

answer

(b) early adopters; these are the opinion leaders who easily influence others who follow their lead. Innovators are not always the best group to target for marketers since they tend to be on the outer edges of the majority and may not be influential enough to pull later adopters along with them. The early majority is easier to influence than the late majority although both groups are easily persuaded by early adopters

question

The planning process that is designed to assure that all brand contacts received by a customer or prospect for a product or service are relevant to that person and consistent over time is referred to as (a) promotional strategy, (b) marketing planning, (c) integrated marketing communications, (d) target marketing

answer

(c) Integrated Marketing communications; this is the AMA definition of integrated marketing communications. While promotional strategy also involves making plans about marketing communications, it doesn't address the issue of consistency over time. Marketing organizations increasingly make efforts to produce promotional campaigns that incorporate integrated marketing concepts

question

When new movies are about to be released, the stars in the film go on the talk show circuit to promote the release of he film. This activity is best referred to as: (a) a waste of time, (b) advertising, (c) publicity, (d) public relations

answer

(d) public relations; public relations is "that form of communication management that seeks to make use of publicity and other non-paid forms of promotion and information to influence the feelings, opinions, or beliefs about the company, its products or services, or about the value of the product or service or the activities of the organization to buyers, prospects, or the stakeholders

question

In the Whirlpool example, which of the following matches is NOT correct (a) product mix = all items under the heading of kitchen products, laundry room products and whole home products, (b) product line = refrigerators, (c) product category = side by side refrigerator, (d) all of the above are correct

answer

(c) product category = side by side refrigerator; this is not a correct definition of a product category. A product category is a general term to describe the market or industry. Kitchen products are a product category for Whirlpool

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