Exam 11: Part 1: Product and Promotion: Creating and Communicating Value

A person who is a first adopter in one product category is very likely to be a first adopter in most other product categories.

One reason so many firms favour funny ads is that using humorous messages involves very little risk.

The rapid pace of technological change has created a need and an opportunity for marketers to increase their use of technology more in an effort to reach a broader range of consumers with the right product at the right time with the right message.

Sales tend to peak in the growth stage of the product life cycle.

Marketers have more control over publicity than they do over advertising.

The rate of diffusion is dependent on the individual consumer and on the product itself.

Marketing experts have determined that the product diffusion rate is really influenced by only three factors: compatibility,image,and sustainability.

The first step in personal selling is identifying potential customers and choosing the ones most likely to buy the product.This step is known as prospecting and qualifying.

Customer benefits occur when a product is well-designed and meets the needs and wants of consumers.

Apple's decision to introduce iPods in different sizes,colours,and storage capacities is an example of line extension.

Books on cassettes and CDs are examples of continuous innovation.

The greatest advantage of publicity is that it is credible in the minds of consumers.

For most consumers,cell phones,digital cameras,and dishwashers would be shopping goods.

Billboards are one of the most effective ways to reach specific target markets.

The development of a large number of different and independent messages is the most important element of integrated marketing communication.

Coupons and samples are examples of publicity tools used by marketers.

The last step in the personal selling process is to close the sale.

The appropriate promotional mix for a product will be influenced by where that product is in its product life cycle.

Two of the key drawbacks of radio advertising are that they are low impact and it is easy for listeners to switch stations to avoid the ads.

Healthmode,a personal health care company,has just developed a new type of skin lotion that it claims is much more effective at healing dry skin than competing brands.One way it could improve the rate of diffusion of this new product is to allow consumers to try out small samples.