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

Marketers trying to boost a product's immediate sales might use sales promotion in the promotional mix.

An example of a store brand is a local grocer reaching an agreement to give Campbell's soups the most favourable shelf location in the soup section of the store.

Today's smartest and most profitable firms have learned that the key to their success is to provide the highest possible level of performance in their products.

Margo has decided to join Tone-It-Up Fitness in an effort to become physically fit.The core benefit Margo is seeking revolves around her desire to become more physically fit.

Advergaming is the strategy of using sweepstakes (such as the Publishers Clearing House Sweepstakes)and games (such as McDonald's Monopoly game)to generate interest in a company's products.

Technology is an important part of maintaining contact with consumers.

The warranties and customer phone support a firm provides with its products are part of the actual product.

Promotion is communication designed to influence consumer purchase decisions.

Two key success factors in the commercialization stage of product development are gaining distribution and launching promotion.

The number of promotional messages a customer sees or hears about a product is more important than how consistent the messages are.

Specialty products are products that consumers seldom purchase but are important to the consumer.If the product is unavailable,substitutes are not considered.

For a business to thrive long-term,effective new product development is vital.

Magazine advertisements tend to last longer than newspaper advertisements.

The two basic types of sales promotion are consumer promotion and trade promotion.

DeBeers was successful when they ran the same advertisements in Japan as they did in the West.

A product mix is a group of products closely related to each other,either in terms of how they work or the customers they serve.

Beta Feta,a cheese distributor,has contracted with a large construction firm to build a new warehouse facility.This type of expenditure is an example of an installation.

Company sponsorships of sporting and cultural events are one of the fastest growing types of promotion.

The best promotion creates a bond with consumers that encourages future purchases.

Cannibalization is the strategy of offering a new product in order to increase sales for other existing products.