Deck 10: Product, Branding, and Packaging Concepts

Question 1

Identify the major stages of the product life cycle, and explain how industry sales and profits vary across these stages.

Answer 1

A product life cycle has four major stages: introduction, growth, maturity, and decline. As a product moves through its cycle, the strategies relating to competition, pricing, distribution, promotion, and market information must be evaluated periodically and possibly changed.
The introduction stage of the product life cycle begins at a product's first appearance in the marketplace, when sales start at zero and profits are negative. Profits are below zero because initial revenues are low, and the company generally must cover large expenses for product development, promotion, and distribution.
During the growth stage, sales rise rapidly; profits reach a peak and then start to decline. The growth stage is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy. Profits begin to decline late in the growth stage as more competitors enter the market, driving prices down and creating the need for heavy promotional expenses.
During the maturity stage, the sales curve peaks and starts to decline, and profits continue to fall. This stage is characterized by intense competition because many brands are now in the market. Competitors emphasize improvements and differences in their versions of the product. As a result, during the maturity stage, weaker competitors are squeezed out of the market.
During the decline stage, sales fall rapidly. When this happens, the marketer considers pruning items from the product line to eliminate those not earning a profit. The marketer also may cut promotion efforts; eliminate marginal distributors, and finally, plan to phase out the product.

Question 2

.Explain the differences between brand marks and trademarks.

Answer 2

A brand name is the part of a brand that can be spoken-including letters, words, and numbers-such as 7UP or V8. A brand name is often a product's only distinguishing characteristic. Without the brand name, a firm could not differentiate its products. To consumers, a brand name is as fundamental as the product itself. Indeed, many brand names have become synonymous with the product, such as Scotch Tape, Xerox copiers, and FedEx delivery. Through promotional activities, the owners of these brand names try to protect them from being used as generic names for tape, photocopiers, and overnight shipping.
A trademark is a legal designation indicating that the owner has exclusive use of a brand or a part of a brand and that others are prohibited by law from its use. To protect a brand name or brand mark in the United States, an organization must register it as a trademark with the U.S. Patent and Trademark Office.

Question 3

What is a product?

Answer 3

A product is a good, a service, or an idea received in an exchange. It can be either tangible or intangible and includes functional, social, and psychological utilities or benefits. It also includes supporting services, such as installation, guarantees, product information, and promises of repair or maintenance. A good is a tangible physical entity, such as an iPad or a Quiznos sandwich. A service, in contrast, is intangible; it is the result of the application of human and mechanical efforts to people or objects. Many intangible products try to make their products more tangible to consumers through advertising and tangible images. An idea is a concept, philosophy, image, or issue. Ideas provide the psychological stimulation that aids in solving problems or adjusting to the environment. For example, Mothers Against Drunk Driving (MADD) promotes safe consumption of alcohol and stricter enforcement of laws against drunk driving.

Question 4

Identify and describe the major categories of business products.

Question 5

What is co-branding? Explain what makes co-branding effective.

Question 6

What are the factors that marketers should consider while selecting a brand name?

Question 7

Discuss the marketing efforts that are likely to be used during the growth stage of the product life cycle.

Question 8

How do sellers benefit from the use of brand names and brand marks?

Question 9

Explain the major stages of the product adoption process.

Question 10

What major changes in a marketing strategy may be required as a product moves into the maturity stage of the product life cycle?

Question 11

Discuss the branding policies marketers can use. What are the two policies used by a firm to brand its products?

Question 12

Discuss some of the issues a marketer should consider when marketing a shopping product.

Question 13

What functions do packages perform? What are the factors marketers should consider when developing packages?

Question 14

What is brand loyalty? Explain the three degrees of brand loyalty.

Question 15

Describe and illustrate the four major categories of consumer products.

Question 16

What are private distributor brands? Describe their characteristics.

Question 17

What steps should a marketer take to protect a brand name from use by others?

Question 18

Discuss the dimensions of a product mix.

Question 19

What is brand equity, and what are the major elements that underlie brand equity?

Question 20

Distinguish between consumer products and business products.

Question 21

To make intangible products more tangible or real to the consumer, marketers often .

A) use low prices on intangible goods
B) use symbols or cues to help symbolize product benefits
C) use external reference prices
D) use multiple channels of distribution
E) offer more support services with such products

Question 22

Byron is interested in buying an antique vase for his grandmother's birthday. He visits an antique store and buys the first vase he sees because it is something he thinks his grandmother would like. Byron does not visit another store and compare other vases. For Byron, this purchase is most likely considered a(n) good.

A) convenience
B) specialty
C) shopping
D) unique
E) unsought

Question 23

Products are classified as being business or consumer products according to the .

A) number of buyers involved in the decision
B) buyer's intended use of the product
C) seller's purpose of selling the product
D) location of use
E) types of outlets from which they are purchased

Question 24

Lindsay stops by the Safeway grocery, her preferred store, on her way home from work. She picks up her usual brand of laundry detergent and orange juice, but she sees that there are no more range-free eggs available. Lindsay is very concerned about the ethical treatment of animals and so she leaves Safeway and goes to another grocery to purchase the range­free eggs. Lindsay's purchase of the eggs would most likely be classified as products.

A) brand loyal
B) shopping
C) specialty
D) unsought
E) convenience

Question 25

Convenience products are .

A) relatively inexpensive, frequently purchased items for which buyers exert only minimal purchasing effort
B) inexpensive items for which buyers are willing to exert considerable effort
C) rarely purchased items that are found in certain retail outlets
D) items that are expensive but are easy to purchase
E) items that require some purchase planning and for which the buyer often will not accept substitutes

Question 26

Ryan is on his way to work when he realizes he has a flat tire. He swings into Sam's Club, an auto repair shop, and has a new tire installed. Ryan's purchase of a new tire in this situation is considered to be a(n) .

A) shopping good
B) convenience good
C) unsought good
D) specialty good
E) industrial good

Question 27

What type of product does Dannon Yogurt represent for most consumers?

A) Convenience
B) Business
C) Unsought
D) Specialty
E) Durable

Question 28

The Carsons are going on a vacation back to Texas. When they lived there, Gwen Carson loved Blue Bell Cookies. Blue Bell is sold only in Texas. She plans to buy two boxes at the first store she visits after they arrive. For Gwen, Blue Bell represents a(n) product.

A) convenience
B) shopping
C) specialty
D) unsought
E) durable

Question 29

David Wilson is an avid collector of Major League Baseball memorabilia. He greatly desires to own the "special" bat that got the slugger Sammy Sosa a seven-game suspension due to its illegal contents. This is an example of a(n) product.

A) shopping
B) unique
C) specialty
D) historical
E) unsought

Question 30

What are the major functions of a label?

Question 31

A(n) is a concept, philosophy, or image.

A) product
B) good
C) idea
D) service
E) issue

Question 32

Which of the following statements does not apply to convenience goods?

A) Consumers are brand loyal to convenience products and are not likely to substitute other brands.
B) Convenience products require minimal shopping effort.
C) Marketing of convenience products requires intensive exposure of these goods in as many stores as possible.
D) Consumers tend to feel that the most desirable retail facility for convenience products is the closest one.
E) Colas, gasoline, and bread are good examples of convenience goods.

Question 33

Shannon Hill needed to buy an airline ticket to visit her parents. She went to several websites to compare rates and chose a flight on Southwest Air Lines because, for a similar price to other airlines, it had a better reputation for service. For Shannon, this flight is an example of which type of product?

A) Shopping
B) Convenience
C) Specialty
D) Unsought
E) Durable

Question 34

MADD (Mothers Against Drunk Driving) is a nonprofit organization that primarily markets .

A) services
B) ideas
C) goods
D) tangible products
E) features

Question 35

In what ways can packaging be used strategically?

Question 36

Which of the following types of products would Energizer batteries be classified as?

A) Convenience product
B) Shopping product
C) Specialty product
D) Unsought product
E) Industrial service

Question 37

Products for which buyers are willing to spend much time comparing stores and brands for differences in prices, product features, and services are called products.

A) shopping
B) specialty
C) service
D) convenience
E) unsought

Question 38

products have a lower inventory turnover and need fewer distribution outlets than convenience goods.

A) Seasonal
B) Unsought
C) Specialty
D) Durable
E) Shopping

Question 39

Ava, a purchasing agent for Trailsend Transport, plans to buy a carpet from Carpet One Inc. for use in an office area at Trailsend. While discussing the details of the carpet with the sales representative of Carpet One, he informs her that she can see the actual product in one of their retail stores before finalizing the purchase. Ava now decides not only to approve the purchase for the office, but also to purchase some of the same carpet for her home. The first carpet purchased is considered as a business product and the second carpet purchased is considered to be a(n) _____.

A) double purchase
B) secondary product
C) idea
D) consumer product
E) service

Question 40

A specialty product .

A) requires minimal effort to purchase
B) is purchased frequently
C) requires purchase planning and the buyer will not accept substitutes
D) is generally less expensive than other items in the same product class
E) prompts the purchaser to make comparisons among alternatives

Question 41

Tojitos Mexican Restaurant purchased several large ovens for use in remodeling its kitchens. These ovens are an example of which type of business product?

A) Raw materials
B) Installations
C) Accessory equipment
D) Component parts
E) Process materials

Question 42

Intuitiv Manufacturing's large plastics molding machine suddenly broke down during its day shift. When considering the purchase of available alternatives, Intuitiv decided to rent one for the next two years instead of buying one. In this situation, the large plastics molding machine it rented would be classified as .

A) an installation
B) accessory equipment
C) an unsought good
D) a process material
E) MRO supplies

Question 43

A set of Bose car speakers sold to Ford for use in the production of a hybrid Escape, would be an example of a(n) _____.

A) component part
B) specialty item
C) accessory equipment
D) raw material
E) process material

Question 44

Nick Arnold's Plumbing Repair Company would best be described as a(n) product.

A) convenience
B) unsought
C) specialty
D) durable
E) shopping

Question 45

Brain Games Inc. is a marketing research company which markets primarily to consumer products organizations. Brain Games provides products that are most likely considered .

A) component parts
B) MRO supplies
C) process ideas
D) business services
E) installations

Question 46

Although they become part of a larger product, can often be easily identified and distinguished on the larger product.

A) component parts
B) accessory parts
C) raw materials
D) process materials
E) MRO supplies

Question 47

Jose went skiing one weekend with several of his friends. While at the slope, Jose injured his leg and needed to see a doctor. Jose is likely going to view the solutions to his problem as .

A) specialty products
B) installations
C) unsought products
D) shopping products
E) convenience products

Question 48

Facilities, factories, and production lines with very large equipment are all classified as .

A) accessory equipment
B) permanents
C) installations
D) component parts
E) MRO facilities

Question 49

Business products are classified into the following seven categories according to characteristics and intended uses: raw materials, installations, accessory equipment, component parts, process materials, business services, and _____.

A) production activities
B) service assistance
C) specialty industrial products
D) computer programming and operation services
E) MRO supplies

Question 50

A product item is best described as a _.

A) component of a marketing mix
B) particular brand
C) specific characteristic of a product
D) specific version of a product
E) unit of measure for the product

Question 51

The production manager of an engineering firm went out and bought a metal cutting machine. The metal cutting machine can best be classified as a(n) .

A) raw material
B) processed component
C) component part
D) service
E) accessory equipment

Question 52

Minerals, chemicals, timber, and agricultural products are considered as .

A) process materials
B) accessory materials
C) MRO supplies
D) component parts
E) raw materials

Question 53

As Beth and Rob search for a new home, they are interested only in houses built by a particular builder. This purchase is a characteristic of a(n) product.

A) branded
B) non-durable
C) unique
D) shopping
E) specialty

Question 54

Business products that are purchased routinely, do not become part of finished goods, and are expense items rather than capital items are known as .

A) raw materials
B) installations
C) accessory equipment
D) component parts
E) process materials

Question 55

Sara Lee Corporation manufactures desserts, breads, pantyhose, meats, and a variety of other products. These products make up Sara Lee's product .

A) line
B) item
C) mix
D) width
E) depth

Question 56

Products used directly in the production of a final product but are not easily identifiable are categorized as .

A) accessory products
B) component parts
C) MRO supplies
D) assembly components
E) process materials

Question 57

A distributor of plumbing supplies purchases a desktop computer to aid in inventory control. This computer is an example of .

A) raw materials
B) installations
C) accessory equipment
D) component parts
E) process materials

Question 58

Business products are .

A) purchased for personal consumption
B) chosen on the basis of preferences expressed by a business procurement department
C) purchased for both their functional aspects and their psychological rewards
D) classified according to their characteristics and intended uses
E) not purchased by private organizations

Question 59

An accountant buys pencils to be used in calculating the taxes of other business firms. Based on this information, pencils in this case would be considered as:

A) MRO supplies.
B) process materials.
C) raw material.
D) convenience.
E) consumer.

Question 60

A product line is defined as .

A) products that can be designated as a unique offering among the organization's products
B) products that an organization makes available to consumers
C) a group of closely related products that are considered a unit because of marketing, technical, or end-use considerations
D) a specific group of products that are offered to the market
E) same products that are sold by different firms

Question 61

During the growth stage of the product life cycle, marketers must .

A) fortify the product position
B) move to exclusive distribution
C) raise the price
D) increase promotion as a percentage of sales
E) introduce private brands

Question 62

During the stage of the product life cycle, weaker competitors are squeezed out of the market.

A) maturity
B) growth
C) introduction
D) market reduction
E) decline

Question 63

Sales of Schwinn's apartment­sized exercise machine have experienced a steady climb; however, the profits have been negative. The Schwinn exercise machine is most likely in the stage of the product life cycle.

A) decline
B) growth
C) initial
D) maturity
E) introduction

Question 64

During the maturity stage, .

A) product modifications are unnecessary
B) less emphasis is on changing a product's price
C) profits continue to rise
D) the sales curve peaks and starts to decline
E) the advertising expenditures are limited

Question 65

The makers of Tide Detergent recently created "pods" of the product, characterized by a small, square, plastic­ wrapped packet that was easier to use. Since it is packaged in these square pods, it requires no measuring and can be transported more easily if one is carrying clothes to a Laundromat. This change in packaging is a strategy that can most likely help boost sales in the stage of the product life cycle.

A) maturity
B) growth
C) introduction
D) market reduction
E) decline

Question 66

In which stage of the product life cycle do profits start to decline?

A) Introduction
B) Growth
C) Maturity
D) Decline
E) Recovery

Question 67

Marissa, a product manager, thinks her company's InstaCup coffee maker is currently in the growth stage of the product life cycle. If so, the profits for InstaCup coffee maker and the number of competitors are growing.

A) are negative
B) have peaked
C) are declining
D) are zero
E) are declining

Question 68

The stage in the product life cycle is critical to a product's survival because competitive reactions to the product's success during this period will affect the product's life expectancy.

A) decline
B) expansion
C) growth
D) introduction
E) stabilization

Question 69

Achieving greater market penetration is a typical business goal during the stage of the product life cycle.

A) maturity
B) growth
C) introduction
D) market testing
E) decline

Question 70

Hershey Foods Corp. offers a line of candy that includes Kit Kat, Mr. Goodbar, Krackel, Hershey's Kisses, Reese's Peanut Butter Cups, Rolo, and Twizzlers. These candies best illustrate Hershey's product mix .

A) width
B) depth
C) length
D) volume
E) life cycle

Question 71

Aggressive pricing is typical during the stage of the product life cycle.

A) decline
B) growth
C) introduction
D) plateau
E) stabilization

Question 72

When a product experiences an increase in the number of competitors, it is usually in the growth stage of the product life cycle; however, when that competition becomes intense, it is in the stage.

A) introduction
B) branding
C) decline
D) maturity
E) adoption

Question 73

Grand Resorts Hawaii has just celebrated its first profit since the opening, two years ago. Grand Resorts Hawaii is most likely in the stage of the product life cycle.

A) maturity
B) growth
C) introduction
D) market testing
E) stability

Question 74

A product mix is best described as .

A) all products offered by a firm
B) product, distribution, promotion, and price
C) similar products sold by one firm
D) all products of a particular type
E) a group of products that are considered a unit because of market, technical, or end-use considerations

Question 75

The four major stages of a product life cycle include .

A) prosperity, recession, depression, and recovery
B) specialty, convenience, shopping, and unsought goods
C) decline, stabilization, exposure, and growth
D) introduction, growth, maturity, and decline
E) awareness, interest, trial, and adoption

Question 76

The depth of a product mix is measured by the average number of:

A) convenience products as compared with the number of specialty products.
B) different product lines offered by the company.
C) different products items offered in each product line.
D) specialty products as compared with the number of convenience products.
E) product features that the company offers.

Question 77

Which of the following tactics would typically be employed when a product is in the growth stage of its life cycle?

A) Intensive segmentation to achieve greater market penetration
B) Raising promotion expenditures as a percentage of total sales
C) Moving from intensive to selective distribution
D) Raising prices to encourage competitors to enter the market
E) Reducing the number of product models in the product line

Question 78

Brunswick's bowling balls, bowling bags, and shoes are individual product for this sporting goods manufacturer.

A) menus
B) mixes
C) lines
D) life cycles
E) ensembles

Question 79

A company markets such diverse products as Rosita Mexican foods, Swizz Max cosmetics, and Blueberry bags. These various offerings exhibit this firm's product mix .

A) width
B) depth
C) length
D) volume
E) dimension

Question 80

The width of a product mix is measured by the number of product .

A) dimensions in the product line
B) features in each brand
C) items in the product line
D) lines a company offers
E) specialties a company offers