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

A major objective of public relations is to generate favourable publicity for an organization.

In order to successfully promote its products,a firm must be able to tightly control all of the promotional messages a consumer sees or hears about its products.

Publicity and word-of-mouth are the two most powerful forms of product promotion.

The last stage of the new product development process is commercialization,which involves introducing the product to the general market.

The goal of integrated marketing communication (IMC)is to create a unified,consistent message regardless of the method of delivery.

A positioning statement is the non-paid message found in a news article.

Cable TV advertisements have higher-quality product ads than broadcast TV.

The more complex a product is to understand and use,the slower its rate of diffusion tends to be.

The brand name and packaging of a product are considered part of the actual product.

Discontinuous innovation occurs when marketers find a new use for an existing product or technology.

Trade shows are designed to allow firms to promote their products directly to final consumers.

Shirtzter,a manufacturer of men's shirts and jackets,has just reached an agreement to pay Kawasaki a substantial fee for the right to use the company's name and logo on some of its clothing lines.This type of arrangement is known as secondary branding.

Marketers using a push strategy focus on promotional techniques that create demand from final consumers.

In a highly competitive market,the best packaging strategy usually consists of emulating the packaging of a successful competitor.

Tom Taylor is in the market for a new car,but not any old car will do.He is convinced that the Gambolini Turbo-Terror roadster is the only car that will meet his needs.Thus,despite its high price tag and the fact that the nearest dealer is over 150 kilometres away,Tom is set to buy the car.This suggests that for Tom the Gambolini roadster is a shopping good.

So far,minimovies on Internet Websites have been used mainly by smaller firms that want to attract consumer attention away from their bigger competitors,but can't afford the expense of television ads.

The first cell phone is an example of discontinuous product innovation.

The goal of dynamically continuous product innovation is to find a way to produce a product more efficiently than competitors in order to offer it at a lower price.

Continuous innovation is the process of making significant changes to existing products.

Using integrated marketing communication involves creating different product messages for different media in order to adjust for the unique strengths and weaknesses of each medium.