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

BMW and Chanel No.5 have both used minimovies,complete with top-level talent,to create a new cachet for their products.

Hennie is in the market for a new computer.He is leaning toward buying a model produced by Micromax because he likes the fact that they have a two-year warranty,and he has heard good things about the company's customer phone support and Website.Hennie's choice appears to be influenced by the augmented product offered by Micromax.

The goal of consumer promotion is to stimulate immediate sales.

Consistency in quality tends to be very high for most services.

A meal at a family restaurant is an example of a pure service.

The first step in taking a big idea to a foreign market should be careful research.

Publicity has little power to influence consumers and is extremely expensive when compared to other promotional tools such as TV,magazine,and radio advertisements.

Broadcast television is the most expensive media to use in reaching consumers.

Core benefits are provided by the augmentations to the actual product.

Premiums,samples,coupons,and rebates are all examples of consumer promotion tools.

Automobile tires could be either a consumer product or a business product.

Branded minimovies seldom employ A-list talent.

Marketing messages tend to be subtle and complex,so trying to capture the big idea of a firm's marketing message in a single word is usually a bad idea.

Once a market is mature,the product will naturally enter the decline phase of the product life cycle.

Nike's "Just Do It" and Walmart's "Always low prices.Always!" are two examples of successful big ideas.

Big ideas may be based on either rational or emotional premises.

A product can be anything that a company offers to satisfy customer needs and wants.This includes physical goods,services,and ideas.

Augmented products are included in buy-one-get-one-free offers or when restaurants allow patrons to drop business cards in a large fishbowl for a chance at a free meal.

Lisa is thinking about buying a Saturn automobile.She has already visited the Saturn Website and has been paying more attention to Saturn ads in magazines and on television.She is planning on visiting a Saturn dealership in the next few days to talk to a salesperson.If Saturn uses integrated marketing communication,its goal will be to coordinate the messages Lisa receives through each of these sources.

The Subservient Chicken Website proved to be an effective way for Burger King to create buzz marketing.