Deck 12: Product and Promotion: Creating and Communicating Value

Question 1

Convenience products are goods or services that reduce the work consumers must do and make their life more convenient. Examples include household cleaning and lawn care services.

Answer 1

False

Question 2

Sam wants to buy a new computer. He is leaning toward buying a model produced by the company FastPace because he likes the fact that it has a two­ year warranty, and he has heard good things about the company's customer phone support and website. Sam's choice appears to be influenced by the augmented benefits offered by FastPace.

Answer 2

True

Question 3

A management consulting firm offers a management training program that instructs students on tools for effective time management and conflict resolution and aims to improve their risk management skills. The firm offers pure goods.

Answer 3

False

Question 4

Core benefits are provided by augmentations to the actual product.

Question 5

Margo decides to join Tone­It­Up Fitness in an effort to become physically fit. The core benefit Margo is seeking revolves around her desire to become more physically fit.

Question 6

Distribution of convenience products tends to be highly selective, and both producers and retailers are apt to promote them to a highly targeted audience.

Question 7

Copy machines, fax machines, and printers are classified as maintenance, repair, and operating products.

Question 8

From a marketing standpoint, a product can be anything that a company offers to satisfy consumer needs and wants.

Question 9

Unsought products are the inexpensive goods and services that consumers buy frequently with limited consideration and analysis.

Question 10

The brand name, features, and the packaging of a product are considered part of the augmented product.

Question 11

Consumers buy convenience products frequently and with limited consideration.

Question 12

Tom Taylor wants to buy a new car. He is convinced that the Gambolini Turbo­Terror 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 90 miles away, Tom is set to buy the car. This suggests that the Gambolini roadster is a convenience product for Tom.

Question 13

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

Question 14

The perishability of services means that providers cannot store them for delivery at peak periods.

Question 15

When customers buy products, they also "buy" all of the attributes associated with the products, such as the brand name, the image, the packaging, the reputation, and the guarantee.

Question 16

Product augmentations help sharpen the competitive edge of products.

Question 17

Specialty products are a type of business product.

Question 18

Accessory equipment includes large capital purchases designed for an extended productive life.

Question 19

The marketing of installations emphasizes efficiency, price, and service rather than product differentiation.

Question 20

Customers directly contribute to the quality of a service.

Question 21

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

Question 22

Product quality relates directly to product value.

Question 23

Chromiate's decision to introduce its MP3 player, GiZmo, in different sizes, colors, and storage capacities is an example of brand extension.

Question 24

Continuous innovation involves slight modifications of existing products.

Question 25

When Bonanza Bakery reached an agreement with Candy Conniption to include the candy in one of its ready­to­bake cookie dough products, the two companies were using a strategy known as cobranding.

Question 26

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

Question 27

The first television is an example of discontinuous product innovation.

Question 28

The two key aspects of product quality are level and value.

Question 29

Quality level is defined by how well a product performs its core function.

Question 30

A company dealing exclusively in cold drinks that begins selling breakfast cereal under the same brand name would be an example of brand extension.

Question 31

Manufacturers rarely emphasize on packaging because this aspect of the product has little relevance to a customer's decision­making process.

Question 32

Shirtzter, a manufacturer of men's shirts and jackets, has just reached an agreement to pay Kwasiaki 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.

Question 33

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.

Question 34

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Question 35

While making decisions related to quality level, a company must pay attention to the needs of its customers and aim to outperform competitors while maintaining profitability.

Question 36

Product consistency is a dimension of product quality.

Question 37

Although e­book readers have been around for several years, the introduction of the LibraBook, a reader featuring several significant improvements over older readers, including wireless connectivity based on cell phone technology was a success. LibraBook owners to download the books they buy in less than two minutes from any location without the need to connect to a computer or the Internet. The LibraBook is an example of continuous innovation.

Question 38

Organizations use component parts and processed materials to produce other products.

Question 39

The right brand name can save a bad business.

Question 40

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

Question 41

Idea generation and analysis are the first two stages of the new product development process.

Question 42

Changing a product or finding new uses for a product can often extend the period of time a product remains profitable during its life cycle.

Question 43

Sales tend to peak in the growth stage of the product life cycle.

Question 44

Msaalersk.eters can control promotional tools such as TV advertising and telephone

Question 45

Typically profits peak in the growth stage of a product's life cycle.

Question 46

Network television and gasoline­powered cars are both in the maturity stage of their product life cycles in the United States.

Question 47

The product life cycle is virtually the same across individual products and product categories.

Question 48

The stages of a product life cycle include expansion, peak, contraction, and trough.

Question 49

Diffusion is always consistent in terms of speed and rate of consumer acceptance.

Question 50

Effective promotion will build a relationship between customers and companies that results in repeat purchases.

Question 51

Changing the marketing mix can help extend the profitable run of an individual brand.

Question 52

Water Words Inc. is the leading supplier of waterproof textbooks. Wendi Storm, the CEO of Water Words, is pleased to note that the company has experienced rapid growth in profits. However, she is concerned because competition is increasing as some other publishers are also starting to waterproof their texts. Wendi's observations suggest that her company's product is in the maturity stage of its product life cycle.

Question 53

The formal process of soliciting feedback from consumers is accomplished in the testing phase of the new product development process.

Question 54

Four years ago, Elliv­Belle Industries introduced a fuel cell that households can use to generate their own low­cost 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.

Question 55

The testing stage of the new product development process involves making prototypes, or samples, that consumers can actually test.

Question 56

Technological changes often explain why a product enters the decline stage of the product life cycle.

Question 57

Marketers can directly control publicity.

Question 58

The primary 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.

Question 59

The constant progress in cell phone technology in terms of adding new, advanced features to the existing ones is an example of continuous innovation.

Question 60

The purpose of idea screening in the new product development process is to eliminate ideas that are inconsistent with a company's objectives, or would be too expensive to develop.

Question 61

Funny ads are a consumer favorite because humor is not risky.

Question 62

Publicity and word­of­mouth are powerful forms of product promotion.

Question 63

Marketers can control every message that every consumer sees or hears about their products.

Question 64

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

Question 65

A positioning statement is a non­paid message found in a news article.

Question 66

Paulo asked his friend, Melanie, to recommend a local dentist. Melanie had just seen an ad for Dr. Davison, a local dentist, and gave Paulo the phone number. This demonstrates power of publicity.

Question 67

Claotenlsyu.mer tolerance for impersonal corporate communication has increased

Question 68

Changes in technology have given consumers the power to control how and when they interact with media.

Question 69

To build a successful promotional message, a marketer has to understand how his or her product is different from and better than the competition.

Question 70

Big ideas that result from the creative development process are typically based on an economical or financial premise.

Question 71

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

Question 72

One effective way for a firm to promote its products is to identify the key points of contact between its products and the target market, and then focus its efforts on those areas.

Question 73

Natural Juices has based its message on the concept that its juices are "Tastefully nutritious." The aim is to let customers know that its products provide a tasty way to get needed vitamins and minerals. This is an example of a big idea that is based on a rational premise.

Question 74

Home Depot's "More savings. More doing." is an example of a rational big idea.

Question 75

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Question 76

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Question 77

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.

Question 78

Effective product promotion requires that everyone who creates and manages promotional messages has free access to information about the customer, the product, the competition, the market, and the organization's strategy.

Question 79

A successful big idea always translates well across cultures.

Question 80

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