Question 1

Environmental concerns matter to consumers, and they expect companies to make changes to address their concerns.

Accepted Answer

A) True 
 B)False

Question 2

Marketing planning begins with formulating an offering to meet target customers' needs or wants.

Accepted Answer

A) True 
 B)False

Question 3

Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles.

Accepted Answer

A)  optional feature 
B)  two-part 
C)  by-product 
D)  product line 
E)  captive-product 
A)  optional feature 
B)  two-part 
C)  by-product 
D)  product line 
E)  captive-product

Question 4

If line filling is overdone, it could result in ________ and customer confusion.

Accepted Answer

A)  sales paralysis 
B)  manufacturing inefficiencies 
C)  cannibalization 
D)  disintermediation 
E)  ineffective management 
A)  sales paralysis 
B)  manufacturing inefficiencies 
C)  cannibalization 
D)  disintermediation 
E)  ineffective management

Question 5

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer oriented) that you wish to see implemented by the design team.

Accepted Answer

The objectives of packaging are to ident

Question 6

Capital items are long-lasting goods that facilitate developing or managing the finished products.

Accepted Answer

A) True 
 B)False

Question 7

Firms should design the highest performance level possible for their products.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following actions would result in the elimination of uncontrollable returns of products in the short run?

Accepted Answer

A)  improved handling 
B)  better packaging 
C)  improved transportation 
D)  proper storage 
E)  cannot be eliminated 
A)  improved handling 
B)  better packaging 
C)  improved transportation 
D)  proper storage 
E)  cannot be eliminated

Question 9

The five product levels constitute a ________. At each level more customer value is added.

Accepted Answer

A)  product line 
B)  business model 
C)  customer value-hierarchy 
D)  value grid 
E)  demand chain 
A)  product line 
B)  business model 
C)  customer value-hierarchy 
D)  value grid 
E)  demand chain

Question 10

A product line can also be lengthened by adding more items within the present range. There are several motives for line filling. Which of the following is one of them?

Accepted Answer

A)  responding to senior management wishes 
B)  responding to consumer wishes 
C)  reaching for incremental profits 
D)  reaching for incremental capacity 
E)  responding to sales-force demands 
A)  responding to senior management wishes 
B)  responding to consumer wishes 
C)  reaching for incremental profits 
D)  reaching for incremental capacity 
E)  responding to sales-force demands

Question 11

Product-line analysis provides information for two key decision areas: product-line length and ________.

Accepted Answer

A)  product-class composition 
B)  product-mix pricing 
C)  product pricing 
D)  popular pricing 
E)  product-need family 
A)  product-class composition 
B)  product-mix pricing 
C)  product pricing 
D)  popular pricing 
E)  product-need family

Question 12

We define packaging as all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package.

Accepted Answer

A)  retailer 
B)  design 
C)  shipping 
D)  consumer 
E)  supplier 
A)  retailer 
B)  design 
C)  shipping 
D)  consumer 
E)  supplier

Question 13

Which of the following is NOT one of the guidelines for managing luxury brands?

Accepted Answer

A)  Besides brand names, other brand elements - logos, symbols, packaging, signage - can be important drivers of brand equity for luxury products. 
B)  Secondary associations from linked personalities, events, countries, and other entities should be avoided. 
C)  Luxury brands must employ a premium pricing strategy, with strong quality cues and few discounts and markdowns. 
D)  All aspects of the marketing program for luxury brands must be aligned to ensure high-quality products and services and pleasurable purchase and consumption experiences. 
E)  Luxury brands must carefully control distribution via a selective channel strategy. 
A)  Besides brand names, other brand elements - logos, symbols, packaging, signage - can be important drivers of brand equity for luxury products. 
B)  Secondary associations from linked personalities, events, countries, and other entities should be avoided. 
C)  Luxury brands must employ a premium pricing strategy, with strong quality cues and few discounts and markdowns. 
D)  All aspects of the marketing program for luxury brands must be aligned to ensure high-quality products and services and pleasurable purchase and consumption experiences. 
E)  Luxury brands must carefully control distribution via a selective channel strategy.

Question 14

Betty Crocker cake mixes using Hershey syrup in its mixes and "Lunchables" lunch combinations with Taco Bell tacos are examples of what special type of branding?

Accepted Answer

A)  family branding 
B)  ingredient co-branding 
C)  co-branding 
D)  generic branding 
E)  individual branding 
A)  family branding 
B)  ingredient co-branding 
C)  co-branding 
D)  generic branding 
E)  individual branding

Question 15

The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind. Consumer expectations about the level of involvement and commitment are likely to be high, so unsatisfactory performance could be very negative for the brands involved.

Accepted Answer

A)  co-branding 
B)  cannibalization 
C)  vertical integration 
D)  disintermediation 
E)  brand stretching 
A)  co-branding 
B)  cannibalization 
C)  vertical integration 
D)  disintermediation 
E)  brand stretching

Question 16

Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix.

Accepted Answer

A)  is ineffective on total 
B)  has no effect on total 
C)  maximizes 
D)  minimizes 
E)  capitalizes upon 
A)  is ineffective on total 
B)  has no effect on total 
C)  maximizes 
D)  minimizes 
E)  capitalizes upon

Question 17

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

Accepted Answer

A label identifies the product

Question 18

Which of the following factors is one of the contributors to the growing use of packaging as a marketing tool?

Accepted Answer

A)  consumption aid 
B)  consumer affluence 
C)  consumer influence 
D)  conformance qualities 
E)  brand identification 
A)  consumption aid 
B)  consumer affluence 
C)  consumer influence 
D)  conformance qualities 
E)  brand identification

Question 19

Price-setting logic must be modified when the product is part of a product mix.

Accepted Answer

A) True 
 B)False

Question 20

Labels can identify the product and must contain legal statements that under various Federal laws cannot be misleading, false, or deceptive.

Accepted Answer

A) True 
 B)False

Exam 13: Setting Product Strategy

Environmental concerns matter to consumers, and they expect companies to make changes to address their concerns.

Marketing planning begins with formulating an offering to meet target customers' needs or wants.

Gillette uses ________ pricing when it offers razor handles at a low cost, but places a high markup on the replacement razor blades that fit in the handles.

If line filling is overdone, it could result in ________ and customer confusion.

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer oriented) that you wish to see implemented by the design team.

Capital items are long-lasting goods that facilitate developing or managing the finished products.

Firms should design the highest performance level possible for their products.

Which of the following actions would result in the elimination of uncontrollable returns of products in the short run?

The five product levels constitute a ________. At each level more customer value is added.

A product line can also be lengthened by adding more items within the present range. There are several motives for line filling. Which of the following is one of them?

Product-line analysis provides information for two key decision areas: product-line length and ________.

We define packaging as all the activities of designing and producing the container for a product. This includes up to three levels of material: primary package, secondary package, and ________ package.

Which of the following is NOT one of the guidelines for managing luxury brands?

Betty Crocker cake mixes using Hershey syrup in its mixes and "Lunchables" lunch combinations with Taco Bell tacos are examples of what special type of branding?

Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix.

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

Which of the following factors is one of the contributors to the growing use of packaging as a marketing tool?

Price-setting logic must be modified when the product is part of a product mix.

Labels can identify the product and must contain legal statements that under various Federal laws cannot be misleading, false, or deceptive.

Defining Marketing for the New Realities

Developing Marketing Strategies and Plans

Collecting Information and Forecasting Demand

Conducting Marketing Research

Creating Long-Term Loyalty Relationships

Analyzing Consumer Markets

Analyzing Business Markets

Tapping Into Global Markets

Identifying Market Segments and Targets

Crafting the Brand Positioning

Creating Brand Equity

Addressing Competition and Driving Growth

Designing and Managing Services

Introducing New Market Offerings

Developing Pricing Strategies and Programs

Designing and Managing Integrated Marketing Channels

Managing Retailing, Wholesaling, and Logistics

Designing and Managing Integrated Marketing Communications

Managing Mass Communications: Advertising, Sales Promotions, Events and Experiences, and Public Relations

Managing Digital Communications: Online, Social Media, and Mobile

Managing Personal Communications: Direct and Database Marketing and Personal Selling

Managing a Holistic Marketing Organization for the Long Run

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