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

As advertising media,a common advantage shared by direct mail,magazines,radio,and the Internet is that they provide marketers with the ability to effectively reach specific target markets with their messages.

As an advertising medium,the key advantages of newspapers include short turnaround times for placing and pulling ads and widespread consumer acceptance.

In many organizations,different teams are responsible for developing different promotional tools.

In promotion,a successful big idea must be meaningful,distinctive,and believable.

Water Words Inc.is the leading supplier of waterproof textbooks.Wendi Storm,CEO of Water Words,is pleased to note that the company has experienced rapid growth in profits.However,she is a bit concerned because competition is increasing,as some other publishers are also starting to waterproof their texts.Wendi's observations suggest that her company's product is in the maturity stage of its product life cycle.

Consumers purchase shopping products after searching for the best value.They compare features and benefits through the shopping process.

In terms of total expenditures,direct mail is the number one advertising media used by companies to promote products.

Quality level is defined by how well a product performs its core functions,as perceived by the customer.

The decision by Coca-Cola to begin selling breakfast cereal under the Coca-Cola brand name would be an example of a brand extension.

The positioning statement is what creates a "hook" for the brand in the consumer's mind.

Installations are a type of business good characterized by a long productive life.

Studies have shown that about 27% of consumers can be classified as first adopters.They are the people who are willing to try new and unproven products.The remaining consumers tend to take a wait-and-see attitude before they will buy the product.

Diffusion is the rate at which products are adopted in the market.

Solar and wind power plants are in the decline phase of the product life cycle.

Convenience products are goods or services that reduce the work consumers must do and make their life more convenient.Examples include household cleaning services and lawn-care services.

Missionary selling refers to personal selling that involves taking a firm's products to foreign countries for the first time.

Standard definition televisions are in the maturity stage of the product life cycle.

The first telephone is an example of discontinuous product innovation.

Product differentiation includes real or perceived differences that serve to distinguish one good or service from the next.

Paulo asked his friend Melanie to recommend a local dentist.Melanie had just seen an ad for Dr.Toothy,a local dentist,and gave Paulo the phone number.This demonstrates the power of publicity.