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

If sales of a once rapidly selling product turn sluggish over time,marketers may be able to extend its life cycle by changing the marketing mix or making changes to the product itself.

Four years ago,Elliv-Belle Industries introduced a fuel cell that households can use to generate their own low-cost electricity without having to buy power from electric utility companies.The product has been successful and is already in the growth stage of its life cycle.During this stage,the product is likely to have the market all to itself because competing products normally aren't introduced until the maturity stage.

Increasingly,leading-edge companies are attempting to directly involve their customers in their new product development processes.

In order to ensure a consistent marketing perspective and integrated messages,all information used to develop promotional messages should flow from top management down to the individuals involved in the promotional efforts.

Consumers are spending more of their free time entertaining themselves on the Internet and less time watching TV.

Changing the marketing mix or finding new uses for the product can often extend the period of time a product remains in the profitable stages of the product life cycle.

BMW effectively used integrated marketing communication (IMC)to create a single unified message when it released its Mini Cooper car.

Publicity is unpaid media coverage that has the power to influence consumer perceptions about a product or service.

Product differentiation attempts to create real or perceived differences in the minds of the consumer.

Integrated marketing communication (IMC)is used to coordinate the delivery of a consistent message to consumers through multiple promotional channels.

Idea screening is the last step in the product development process.

Sales promotion uses short-term programs to stimulate immediate consumer purchases.

Accessory equipment includes smaller,movable capital purchases,designed for a shorter productive life than installations.

Organizations use brand extension when similar products are added to an existing product line under the same brand name.Offering additional features to a cell phone package is an example of brand extension.

Brand equity is the overall value of a brand to an organization.

Once a product enters the maturity phase of the product life cycle,increases in sales by one firm typically come at the expense of other firms.

During the introduction stage of the product life cycle,the firm's marketing efforts usually are focused on raising consumer awareness of the product and product category.

Suppliers and competitors can sometimes be sources for new product ideas.

Manufacturers seldom place much emphasis on packaging,because this aspect of the product has little relevance to the customer's decision-making process.

A management consulting firm offers pure services in a packaged management program.The program includes tools for effective time management,conflict resolution,and risk management skills.