Exam 12: Understanding Marketing Principles and Developing Products

Why is it important for companies to develop new products?

Milk, newspapers, bread, and batteries are examples of ________ goods. specialty shopping convenience coincidental impulse

The Ford Focus is promoted to consumers on the basis of economy, while the Porsche is promoted on the basis of high performance. This is an example of relationship marketing. product positioning. product differentiation. mass customization. psychographic segmentation.

Single parent families, food preferences, and the number of women entering the workforce are all external environmental factors marketing managers must consider when analyzing the ________ environment. public relations legal produce economic socio-cultural

Products which are purchased by end users for their personal use are _________ goods, while products which are purchased by companies for production purposes are _________ goods. industrial; consumer capital; accessory consumer; industrial high utility; low utility none of these

Dinasonic manufactures and markets consumer kitchen products. The company is preparing to introduce its products to international markets. The company's director of marketing wants the company to adapt its marketing approach to the various markets in different countries that the company is looking to enter. He needs to defend the proposal for his recommended marketing strategy to the rest of the executive team. The director of marketing argues that Dinasonic should use an adaptation strategy for its marketing because its products will need to be adapted to different markets. Which of the following, if true, would strengthen this position? Dinasonic's products have consistently had the most competitive prices in the Canadian market. For the kinds of products that Dinasonic makes, preferences for their use vary between different cultures. Dinasonic will not face much competition in the countries in which it plans to sell its products. Dinasonic will have a limited advertising budget for its international marketing efforts. Dinasonic has consistently gained in market share in Canada over the last several years.

For industrial goods, the main difference between expense and capital items is the length of time they are used.

Market research is the study of what buyers need and how best to meet those needs.

Which of the following is correct with regard to rational and emotional purchase motives? Emotional purchase motives generally lead to post-purchase unhappiness. Rational motives are normally used for industrial goods purchases, while emotional motives are normally used for consumer goods purchases. Research shows that rational motives are more commonly used by men, while emotional motives are more commonly used by women. Emotional motives are used when purchasing services, while rational motives are used when purchasing goods. None of these are correct.

You are asked to justify market research for a new product. You explain that it is required to determine if the product will meet performance requirements. to ensure that the new product will mesh with the firm's objectives. to identify future production problems. to identify benefits to be provided by the product. to determine whether there will be a market for the product.

Michael decides that he cannot afford the cost of a new set of tires for his car until after payday. Which state of the consumer buying process is he in? Problem recognition Evaluation of alternatives Purchase decision Information seeking Post-purchase evaluation

Social media like Twitter and Facebook have facilitated the generation of new product awareness during the introduction stage of the product life cycle.

Which element of the marketing mix is illustrated by the use of premiums, trading stamps, and coupons meant to encourage consumers to buy more of a product? Price Promotion Production Place Productivity improvements

Secondary data are generally more useful than primary data because secondary data are more voluminous, more readily available, and cheaper to obtain.

Purple Moon markets adventure software to pre-teen girls. This is an example of relationship marketing. mass customization. product differentiation. customer identification. market segmentation.

The ________ is a good, service, or idea that is marketed to fill consumer needs and wants. product place profit promotion price

Marketing of insurance, airlines, investment counsellors, and health clinics are examples of relationship marketing. industrial marketing. service marketing. idea marketing. consumer marketing.

Changing social values have forced companies to develop and promote new products for individual consumers, but industrial customers have not been affected nearly as much.

The product life cycle is the concept that states that products have a limited profit-producing life.

Snazzy Sodas is known for its variety of all-natural sodas as well as its efforts toward social responsibility. The company has decided to produce a new line of energy drinks, and while it does not have the resources to promote its product widely, it can make a sizeable impact with a carefully chosen market segment. The CEO favors marketing the product primarily to young males, but the VP of Operations recommends targeting female professionals. Which of the following, if true, would most strongly support the VP of Operation's position? Industry-leading companies tend to target as wide a market as possible. Female professionals are more likely to stay with a known brand for expensive items such as cars. Female professionals tend to have a strongly positive opinion of Snazzy's current products. Young females consume more energy drinks per person than the general population. Male professionals often report a lack of energy while at work.