Exam 12: Understanding Marketing Principles and Developing Products

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 favours marketing the product primarily to young males, but the VP of operations recommends targeting female professionals. Which of the following, if true, would weaken the CEO's position?

Marketing plays a role in creating time, place, and ownership utility, but not in creating form utility (which is the job of the production area).

Before buying a new cell phone, you might read about different brands, or ask a sales clerk for a recommendation, or rely on your own past experience. All of these actions illustrate that you are in the information seeking stage of the consumer buying process.

How does an understanding of consumer behaviour help marketing managers? Include the meaning of the major factors influencing consumer behaviour.

Scott is an intelligent, conservative programmer. His clothes purchases are typically darker in colour and not the current fad. This is an example of

Martin is the director of marketing at Panther Shoes. He has begun to look at product differentiation strategies for Panther Shoes. Why is this concept important to Martin?

Give some specific examples of how some companies have capitalized on changing demographics.

Harley-Davidson's famous logo is emblazoned on products such as boots, eyewear, gloves, purses, lighters, and watches, and the motorcycle maker receives more than $210 million annually from fees it receives. This is an example of a ________ brand.

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.

Starbucks's Card Rewards attracts return customers with free coffee refills and other extras. This is an example of

Branding is a process of using symbols to communicate the qualities of a particular product made by a particular company.

How does organizational buying behaviour differ from consumer buying behaviour?

Which of the following is correct with regard to rational and emotional purchase motives?

________ is the most highly visible component of the marketing mix.

ComicalYou is a new social media service in which participants create avatars to represent themselves, describe their lives, and interact with one another. All the postings are graphical, presenting the messages in the form of comic panels and strips. The service's software easily converts ideas into whimsical images. The site's creators, Ginny and RJ, believe that ComicalYou will be especially appealing to young people because it is so effective in conveying emotional content with a lighthearted appeal. They, along with a team of six employees, have completed the software, tested it on two dozen of their closest friends, and are eager to open up their site to users. What steps in the development process should Ginny and RJ complete before they commercialize ComicalYou?

Which of the following terms describes the kind of products marketed by insurance companies, airlines, investment counsellors, health clinics, and public accountants?

Product positioning is most closely related to the "place" element in the marketing mix.

Coffee, potato chips, newspapers, bread, and AA batteries are examples of ________, while stereos and tires are examples of ________.

Video mining is used by retailers mainly to catch shoplifters.

What are three functions of packaging?