Exam 2 Foundations of Marketing Practice- MKTG 3650 Thompson – Flashcards
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The 'level of product' that most closely represents the basic benefits provided by the product is called the:
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Core Product Value
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Consumers typically buy ________ goods based on variety seeking, impulse, and inertia behavior
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Convenience
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Dutch Boy has teamed with Arm & Hammer to come up with Refresh, a wall paint that absorbs odors. This is an example of _______.
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Co-branding
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Proctor and Gamble uses Flanker brands to:
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Target slightly different market segments with its different brands.
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When Proctor and Gamble introduces a new flanker brand into any of its existing product lines they typically experience some lost sales for other brands in that line. These lost sales are called....
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Cannibalization
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A firm that wants to sustain its revenues should engage in new product development because:
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Products inevitably pass through a life cycle that culminates in the demise of the product
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Probably the most difficult to manage level of 'brand' to manage is the:
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extended or affective brand
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The role of perpetual fit when selecting a celebrity endorser for a brand is conceptually most similar to the role of perceptual fit with respect to"
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Co-branding
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Arm and hammer has been particularly successful at brand extending because its distinctive ingredient (baking soda) contributes substantially to the brand's ___________ with its extension products.
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Perceptual fit
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Coke insists that wait-staff in restaurants selling only Pepsi products ask patrons if Pepsi will be OK? when the customer requests a coke this is done primarily to:
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Help prevent the Coke brand from being declared generic
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The synaptic associations in a consumers mind that hold all the feelings, images, sensations, experiences, and other content representing a brand is called
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Brand Schema
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The pet rock illustrates a product whose life cycle possesses a distinct "s-shaped' pattern typical of fads. True or False?
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False
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Tara Foods of Georgia produces a wide range of Peanut Butters and other food extracts, but does not sell any of its output under its own brand name. Tara evidently produces _______.
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Middlemen's brands
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BIC introduced its line of disposable pens in 1959. It subsequently introduced line of disposable lighters and razors in the 1970s. BIC apparently used which branding strategy to launch these later products?
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Brand extension
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The advantages of brand extension as a strategy are most closely related to those of _______?
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Family Branding
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The staple good is most closely associated with the ___________ category of products.
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Convenience Goods
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According to the characteristics of a good brand name is "Duncan Hines" a good name for cake mixes? Assume that you have never heard of this brand before.
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No, because it suggests nothing about the product.
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The distinct lettering that identifies a brand is generally referred to as:
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The logo or logotype
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Which of the following best explains why the Kroger supermarket chain markets its own line of canned fruits and vegetables under the Kroger private label?
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Kroger can sell its brands at prices below those of producers brands and still earn satisfactory profits
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Examine the image on the right. "speedy" best illustrates which of the following for the Alka Seltzer brand?
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A trade character
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Ads and packaging for Vaseline always present the brand as Vaseline brand petroleum jelly because
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The manufacturer hopes that by linking the brand name with a name for the product category, the Vaseline brand will be protected from becoming generic in use
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Many consumers continually rebuy the same brand but have little or no emotional commitment to the brand: The behavior represents represents purchasing due to _______.
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Inertia
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Consumer Convenience Goods are most closely associated with which type distribution strategy?
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Intensive
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The Point of purchase advertising institute does a survey every few years geared to understanding consumer shopping behavior. Several film segments on POPAI's surveys were presented and discussed in class. Answer the following questions relevant to POPAIs survey.
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Retail Supermarkets (Albertsons, Kroger)
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The advantage of brand extension as a strategy are most closely related to those of ________.
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Family branding
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There are many products sold that bear the Harley-Davidson brand, however Harley-Davidson does not manufacture these products. Instead, Harley-Davidson allows other manufacturers to use its brand name in return for royalties on the sales of these products. Harley-Davidson is apparently employing a brand licensing strategy.
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True
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When Friskies bought the Alpo bran d they redesigned the Alpo package to feature the Friskies name along with Alpo. However the Alpo brand continued to receive the super-ordinate position on the label. This specific branding relationship is referred to as:
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Over-branding
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Being too quick to criticize new product ideas is considered to be one of the biggest pitfalls pf __________
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brainstorming
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Al works as a cement finisher for a parking lot repaving company. He is suspicious of innovation and innovators. He was one of the very last people in the small western city in which he lives to buy a microwave oven. When it comes to the adoption of microwave ovens, Al is the ________ category
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Laggard
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In which of the adopter categories will opinion leaders likely be found
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Early adopters
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The _________ of a new product is the process by which an innovation is spread through a social system over time
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Diffusion
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The gas electric vehicle marketed by Honda apparently us viewed negatively by many Texans because it doesn't fit their expectations of power and performance. Apparently, the new Honda may be slow to diffuse in the Texas market because
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It lacks value compatibility
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The 80-20 principle and the concept of the heavy half are most closely associated with the ___________ method of segmenting and positioning to target markets.
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Usage rate
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the competitive positioning strategy in which marketers attempt to position away from the competition is most likely to be employed when the product is somewhat unique and is targeted to specialized niche market segments. True or False?
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True
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The classification scheme for consumer products presented in class divides these products into 3 basic categories defined by
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How much effort is expended in the purchase process
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Candice insists buying only Revlon cosmetics. Rather than purchasing other brands when Revlon is not available. Candice will postpone her purchase or drive substantial distances to find her preferred brand. To Candice, Revlon is what marketers refer to as a
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Specialty Product
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The Cleaning products portrayed in the picture on the right are best classified as
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Operating supplies
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Market positioning as a component of the marketing management process involves:
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Creating the desired image for the brand in the minds o the firm's customers
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As consumers age, the tend to move from one stage of the family life cycle to the next. Each stage of the life cycle can be treated as a different market segments because:
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all of the above [consumers needs for different products and services generally change from one stage to the next, key consumption-related demographic, media graphic, and psycho graphic traits may change from one stage to the next, consumers incomes may change, consumption-related attitudes may change.
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Manufacturers of national brands generally will also produce products under private labels. This is done because
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Manufacturers of national brands often cannot sell all their output under their own brands
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Friskies a major producer of cat and dog foods, decided not to introduce its newly developed contraceptive dog food because of its concern that
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There may be a negative repercussion on the friskies brand as a whole
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When Excedrin introduced its new Excedrin migraine into its product line of pain relievers it was introducing what we call a
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line extension
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Check sheets and weighted point evaluation models are most likely to be employed in which stage of the new product development process
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idea screening
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the first 4 stages in the new product development process are particularly critical because
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These stages deal with ideas and are the least expensive steps
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Last week Janet purchased her first bottle of Excedrin migraine. She wanted to see if the products pain-releiving benefits were any better than the brand she was using. Janet is most likely in the _______ stage of the new product adoption process
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Trial
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Hismanal is a drug that will eliminate all of your seasonal allergy complaints without making you drowsy. In terms of currently available allergy remedies that do make many people drowsy. Hismanal has greater ______ for allergy suffers which should speed its diffusion rate
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Relative Advantage
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The classification scheme for new products is based on
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Degree of consumer re-learning required for the new product
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Frito lay test marketed a new flavored potato chip fundamentally identical to proctor and gambles pringles line of chips. Sales were disappointing as revenues were not even high enough to cover the products costs. Frito lay decided not to commercialize the product primarily because they were afraid the product would be an
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absolute failure
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Sony corp. Conducted a series of consumer use test in the 1990s in which consumers were given samples of its experimental dig. cam. Participants were instructed to use the cam for all their pic taking for the next 30 days. At the end of that time participants were instructed to use the camer
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problem analysis
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Gatorade recently teamed up w tiger woods to market sports drink the branding strategy used in the add illustrates ____ and is considered to be an excellent strategy for extending the _____ stage of the PLC for some products .
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Co branding maturity
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With respect to PLC the x axis most closely represents
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time
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The transition of a product into the decline stages of its PLC is most likely a result of
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Introduction of a new sub technology
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When microwave ovens were introduced in the 1960s they were slow to be adopted. Although the ovens scored very high on relative advantage they were deemed to be inconsistent with the wife rule in the kitchen
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compatibility
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The classification scheme for new products is based on
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degree of consumer re-learning required for the new product
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7 ups uncola ads in the 70s promoting 7-up as an alternative to regular colas is an example of _____ positioning in action
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Competitive
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Positioning coffee as a think drink illustrates the use of which positioning strategy
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usage occasion
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The positioning strategy for diet coke when the cola was initially launched in the all of the following positioning points except
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income
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A variety of variables are employed to profile market segments The variable most closely associated w identifying the range of advertising and other promotional materials preferred by target customers is called
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media graphics
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With respect to market targeting the strategy in which marketers target a number of different market segments each with a different marketing mix is called the _______
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differential strategy
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A market segmentation study of the fairy industry identified a number of different market segments for whole milk. However the ability to reach these different segments with differentiated marketing programs. The marketer in question probably should employ an ________ market targeting strategy
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undifferentiated strategy
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The synaptic associations in a consumers mind that hold all the feelings, images, sensations, experiences and other content representating a brand is called
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brand schema
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industry sales are growing, but the rate of growth has slowed dramatically. The number of competition is increasing and individual firms are spending large sums in order to buy market share from one another. AS a result of increased marketing costs, profits are eroding. Which stage of the product life cycle seems to be indicated
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Maturity
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Which of the following segmentation bases is most consistent with the tenets of the marketing concept? In other words, if you are a strong advocate of the marketing concept, which of the following segmentation bases will be most consistent with your "philosophy of doing business?"
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Benefits
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The below ad (Marlboro) suggests that the advertiser probably employed which of the following positioning strategies?
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Lifestyle
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From a customer-oriented perspective, the ideal basis for segmenting a market is with:
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Customer's desired benefits or needs.
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Suppose a chain of hair salons which targets children decides to locate its stores only in the suburbs. This would be an example of the use of a _________ segmentation base.
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Geographic
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The step(s) in the market segmentation process in which marketers employ a wide range of demographic traits, mediagraphics, psychographics, and attitudes typically is (are)(select all that apply):
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Profiling market segments
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Mass marketing (as contrasted with market segmentation) is more likely to be a viable strategy when the firm anticipates that scale economies will lead to cost reductions and lower prices for customers.
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True
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The ad (below) suggests that the advertiser probably employed which of the following competitive positioning strategies?
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"Like and better than"
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Since California has legislated that the state's drivers must begin using alternative fuel vehicles, Ford Motor Company has introduced just for that state a full-size truck that runs on natural gas. This is an example of ________________ segmentation.
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Geographical
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Samantha is the marketing manager for a large consumer goods firm. Based on the results of a survey-based market segmentation study, Samantha has decided to segment the firm's market into 'usage rate' or 'consumption rate' segments. The results of the study identified a sizable 'heavy half' that Samantha decided to target because she has always assumed that the most profit potential exists with this segment. Samantha may be guilty of committing __________________ .
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The majority facllacy
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Mazda is a car manufacturer that has known some highs and lows during recent years. 1989 was one of its highest years. In that year it introduced the Miata, a two-seat convertible. The recession of the early 1990s and some problems with its U.S. marketing programs caused the company's sales to slide downward. Mazda's sales in 1995 were 24 percent lower than they had been the preceding year. In January 1996, sales were 18 percent lower than they had been in January 1995. Mazda hopes this trend will be reversed by its MPV minivan. Mazda has positioned its van as a cross between a standard minivan and a sport utility vehicle. What differentiates the MPV from the competition is its rear-wheel drive. One of the segments of the market that Mazda targeted was the group of automobile owners who want to be able to tow their boats and campers behind their minivans. Which segmentation base is implied?
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Benefit
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The French prefer to buy top-loading clothes washers. The rest of Europe uses front-loaders. In developing its strategy for marketing to these nations, Whirlpool had to use ____________ segmentation to make sure that its washers suited the tastes of the consumers in each of the European countries.
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Geographic
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"Mass marketing" is most consistent with the production concept.
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true
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The Bayer PM ad (below) suggests that the advertiser probably employed which of the following positioning strategies?
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USage occasion
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The following ad for Gillette suggests that the marketer probably employed which type of market segmentation base? (Gillette Mach 3 ad)
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Benefits or product attributes
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The following ad (Bayer PM) suggests that the advertiser probably employed which of the following segmentation bases?
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usage occasion
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Which of the following statements is most correct when examining the diagram below?
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The distances between brands (dots on the diagram) represent subjects' judgments about how similar or dissimilar brands are to one another.
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Mazda is a car manufacturer that has known some highs and lows during recent years. 1989 was one of its highest years. In that year it introduced the Miata, a two-seat convertible. The recession of the early 1990s and some problems with its U.S. marketing programs caused the company's sales to slide downward. Mazda's sales in 1995 were 24 percent lower than they had been the preceding year. In January 1996, sales were 18 percent lower than they had been in January 1995. Mazda hopes this trend will be reversed by its MPV minivan. Mazda has positioned its van as a cross between a standard minivan and a sport utility vehicle. What differentiates the MPV from the competition is its rear-wheel drive. When Mazda was trying to decide what type of vehicle was most likely to bring it out of its slump, it knew that it needed to use a market segmentation strategy. The first thing Mazda had to do when it segmented the automobile-buyer market was to:
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Identify the current and potential needs of the market (assuming that a benefit segmentation base is desirable).
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Which of the following segmentation bases best illustrates how market segments were created in the toothpaste and snack food studies presented in class?
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Benefits
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Because data are easily collected, readily available in secondary sources, and often are highly correlated with consumer wants and needs, __________________ is the most commonly employed segmentation base used in marketing applications.
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Demographic
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The ad (below) suggests that the advertiser probably employed which of the following positioning strategies?
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attribute
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"Market positioning" as a component of the marketing management process involves:
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Creating the desired image for the brand in the minds of the firm's customers
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The image below best illustrates a:
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perceptual map
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To get our bodies into better physical condition, we know we need to exercise, but many of us worry about what we look like while we're exercising. We also may want to exercise at odd times of the day when most gyms are closed. Advertisers of home fitness equipment have taken particular advantage of these facts. They are, in part, probably using ________________ segmentation. Select all that apply.
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Lifestyle
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The 'core' product is most closely associated with:
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The fundamental benefits that the product delivers to buyers.
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Which of the following best describes the primary distinction between component parts and fabricating materials?
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Parts undergo little or no additional processing as they are combined into the larger product. The parts are always uniquely identifiable.
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During the introductory stage of a product's life cycle:
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The promotional program is designed to stimulate demand for the product category. There is very little direct competition. Costs are high. The profit curve is negative through most (perhaps all) of this stage.
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Which of the following is least likely to contribute to the general increase in profits experienced by products that have entered the growth phase of the PLC?
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fads
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Campbell s recently ran a series of ads on TV in which a variety of new recipes for its soups were featured. This strategy generally is employed for products that are at the ______ stages of the PLC.
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growth and maturity
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The Clorox Company, a manufacturer of bleach, has added a line of bleach-free disinfectant wipes for cleaning up spills and sticky fingers. With the addition of the Clorox disinfecting wipes, the firm has changed its:
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Product mix width or breadth
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Tarzan dolls, bookbags, sweatshirts and posters seemed to become popular overnight. After about six months, you were able to buy Tarzan products at flea markets and garage sales for less than 25 percent of their original cost. Tarzan-related products exemplify:
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a fad
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Cappio was the first canned ready-to-drink coffee on the market. It had to create the demand for the product category. As soon as demand for the product was shown to exist, Coke and Pepsi began promoting their own brands of canned, ready-to-drink coffee. During which stage of the product life cycle would you expect to see such activity occurring?
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growth
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The transition of a product into the decline stage of its PLC is most likely a result of:
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introduction of new technologu
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As described by the product life cycle, the profit curve for most new products:
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Is negative through most (perhaps all) of the introductory stage of the product life cycle
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Industry sales are growing, but the rate of growth has slowed dramatically. The number of competitors is increasing and individual firms are spending large sums in order to buy market share from one another. As a result of increased marketing costs, profits are eroding. Which stage of the product life cycle seems to be indicated?
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Maturity
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Which of the following products is characterized by the requirement for 'intensive distribution.'
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Convenience goods
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In terms of the product life cycle, the soft-drink market is basically a mature market. There are still many profitable small regional soft drinks, such as Big Red, Cheerwine, and Vernors. What type of product strategy would you expect these small bottlers to use?
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Product differentiation.
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The oil drilling platform depicted below is best classified as:
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an instiallation
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Dial Company introduced liquid soap in 1988. Today competition in the industry is intense. The manufacturers of liquid soap are adopting a defensive positioning strategy and intensive product distribution. Their promotions appeal to brand loyalty. From this information, you know that liquid soap is in the _____ stage of its product life cycle.
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maturity
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That aspect of a 'product' that is most responsible for creating 'brand image' is:
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total product
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The 'level of product' that most closely represents the 'extra utility' provided by services such as credit, warrantees, delivery, post-sale service, etc. is called the:
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enhanced product
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Brand product life cycles generally are more erratic in shape and duration than are product category life cycles because:
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Marketing managers are continually adjusting their marketing programs for brands as market and environmental conditions change
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During the _____ stage of the product life cycle, both sales and profits rise, numerous competitors enter the market, and sellers use promotional programs to stimulate demand for their brands.
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growth
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The company that is the first to introduce a new type of product to market often achieves a:
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pioneer advantage
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Which of the following are characteristic of installations (select all that apply)?
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end to be capitalized on balance sheets. Are relatively high cost items. Tend to be 'expensed' over time. Contribute signicantly to the scale of operations. Are 'used up' in daily operations.
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The battery-powered hand drill in the picture is best classified as:
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accessory equiptment
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Ford motor company purchases anti-freeze in bulk from DuPont Corporation. This anti-freeze is placed in the radiators of its new cars prior to their being shipped to the dealers. The anti-freeze is:
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maufactured or componet part
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You are the brand manager for Tide (P&G brand) and are considering ways to revive lagging sales. Recognizing that your brand and the product category as a whole are 'mature,' you are examining several strategic options. Which of the following is least likely to be a viable alternative to accomplish your sales goals?
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harvest the brand
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All of the products offered for sale by a firm characterize its:
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product mix
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Which of the following is an unlikely management strategy to use for a product in the decline stage of its product life cycle?
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Increase the depth of the product line by adding new line extensions or flanker brands.
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The breadth or width of a firm's product mix refers to:
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number of product lines
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Products like Campbell's soups have been around for decades. Now Campbell spends much of its advertising dollars on publishing recipes that use Campbell's soups as one of their main ingredients. This strategy suggests that Campbell's soup is in the _____ stage of its product life cycle.
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maturity
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When video games were first introduced, they were played on 16-bit game computers. As soon as the 32-bit machines were introduced, sales for the 16-bit games and players quickly fell. The 16-bit product category entered the _____ stage of its product life cycle.
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decline
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With respect to the PLC, the x-axis most closely represents:
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time
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The classification scheme for consumer products divides these products into three basic categories defined by:
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How much effort is expended in the purchase process
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The 'convenience goods of the industrial market' are:
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operating supplies
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Manufacturers of national brands generally will also produce products under private labels. This is done because:
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Manufacturers of national brands often cannot sell all their output under their own brands.
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Procter & Gamble markets Zest, Safeguard, Camay, and Lava brand bar soaps. Zest is a "get-you-started in the morning" soap. Safeguard is marketed as a germ-fighter. Camay cleans without drying or injuring the skin. Lava is for tough cleaning jobs. This illustrates the use of:
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a multiple brand strategy
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Which of the following is the most likely reason the advertiser ran the Rollerblade ad below?
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Because the brand is in danger of becoming 'generic' and the ad emphasizes the equity associated with brand ownership
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Krups is famous for its state-of-the-art coffee maker, but the company also makes other small appliances, such as an ice cream maker. Each product bears the Krups name and carries on the Krups's reputation for high quality. Krups uses _____ branding.
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family
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One of the advantages of using family branding is that the strategy:
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Makes it less expensive to introduce new, related products.
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A _____ is a brand that is given legal protection because, under the law, it has been appropriated by one seller.
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trademark
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The biggest potential drawback to co-branding is:
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the risk of damaging a brand name if the cooperative endeavor fails
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One of the difficulties with using family branding is that the strategy:
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Requires a great emphasis on consistent quality.
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The part of the brand that consists of words, letters, and/or numbers that can be vocalized is called the:
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brand name
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From a consumer's point of view, branding:
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Means getting comparable quality with each purchase.
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Assume Kellogg's is planning to market a line of CD-ROM disks. Which of the following brand strategies would Kellogg's be LEAST likely to use?
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a family brand with kelloggs name
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The distinct lettering that identifies a brand is generally referred to as:
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the logo or logotype
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How might Whirlpool benefit if appliances it manufactured were sold at Sears under the Kenmore brand name?
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it would allow whirlpool to do all of the above
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Examine the image below. The image best illustrates which of the following?
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a trade character
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Cannibalization is most likely to be a problem with which of the following branding strategies?
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flanker branding
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Ads and packaging for Vaseline always present the brand as Vaseline brand petroleum jelly because
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The manufacturer hopes that by linking the brand name with a name for the product category, the Vaseline brand will be protected from becoming generic in use
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Procter and Gamble makes extensive use of 'individual branding' for items in most of its product lines. Which of the following is least likely to be an advantage of this strategy?
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Makes it easier and cheaper to launch new products due to the common image associated with all P&G brands.
