Deck 14: Strategic Launch Planning

Question 1

A dominant brand in a product category is known as a flagship brand.

Answer 1

True

Question 2

Mass media marketers use tighter market segments than direct marketers and online marketers.

Answer 2

False

Question 3

In the context of product commercialization, which of the following statements is true of tactical launch decisions?

A) They include strategic platform decisions that set overall tones and directions of a product.
B) They are marketing mix decisions that are typically made after strategic launch decisions.
C) They include strategic action decisions that define to whom a firm is going to sell a product and how.
D) They are marketing mix decisions that are typically made after strategic decisions are implemented.

Answer 3

B

Question 4

Which of the following is a product level performance measure used for individual products?

A) Market share
B) Unit volume
C) Product use
D) Time to launch

Question 5

Markets today are so complex that one product cannot come close to meeting all needs and desires of the customers.

Question 6

Strategic givens are more easily modified as compared to tactical decisions.

Question 7

The launch plan for a new-to-the-world product is expected to stimulate replacement demand rather than primary demand.

Question 8

Virtual product testing is an extension of mass customization.

Question 9

Bulk packaging that holds a product's secondary packages for shipment is referred to as primary packaging.

Question 10

Which of the following is a customer acceptance measure used during the strategic launch planning of a new product?

A) Profitability
B) Market share
C) Product cost
D) Time to launch

Question 11

Tactical launch decisions are marketing mix decisions such as communication and promotion, distribution, and pricing of a new product.

Question 12

Which of the following metrics is used to assess the financial performance of individual products?

A) Customer satisfaction
B) Competitive effect
C) Profitability
D) Market share

Question 13

According to Geoffrey Moore's crossing the chasm model, innovators and early adopters should be considered as the pragmatists and later categories as the visionaries.

Question 14

Every new product must be identified, and the accurate term for what identifies products is copyright.

Question 15

The most expensive and risky part of the new products process is often _____.

A) product prototyping
B) product use testing
C) product ideation
D) product commercialization

Question 16

A continuous innovation requires little learning by customers, as compatibility with prior experiences and values is high.

Question 17

Typically, courts permit private brands absolute rights to copy a well-known brand's trade dress.

Question 18

The cash-to-cash metric shows the time between the initial cash investment and the time of payment for a finished product.

Question 19

Product cost is one of the common customer acceptance measures used by firms as goals for individual products.

Question 20

If a firm decides to be very aggressive at the time of launching a new product, it is an example of a(n) _____.

A) platform decision
B) action decision
C) tactical decision
D) operational decision

Question 21

Under the _____ of market replacement, a continuous positive image is created for the new item being upgraded.

A) butt-on strategy
B) side-by-side strategy
C) rollout strategy
D) aggressive strategy

Question 22

In the context of the product characteristics suggested by Everett Rogers, _____ refers to how easy it is for a user to see the benefits of using a product.

A) divisibility
B) trialability
C) communicability
D) adaptive complexity

Question 23

Which of the following best describes broaden the market fallacy?

A) Within the same market segment, there exists customers who have varying purchasing power.
B) What makes a product appealing for one customer segment may not be the same for another.
C) A product that does not come in attractive packaging is initially rejected by its target market.
D) A promotional strategy is highly successful when it is targeted to diverse groups of customers.

Question 24

For a new product entry or line addition in an established market, the emphasis is on stimulation of:

A) trial purchase, which is a precursor to adoption.
B) joint demand for the new product as well as an existing product.
C) repeat purchases for an existing product.
D) derived demand for the new product as well as an existing product.

Question 25

Leo Burnett advertising agency uses scanner data to cluster food buyers into six groups. Which of these groups consists of people who buy all major brands, always on deals?

A) Loyalists
B) Price-driven
C) Light users
D) Rotators

Question 26

The cash-to-cash metric was first used by _____.

A) supply chain managers
B) product launch managers
C) advertisers
D) creditors

Question 27

How is continuity of innovation for new products related to learning by customers?

A) The more continuous the innovation, the more learning is required.
B) The more continuous the innovation, the less learning is required.
C) The degree of customer learning remains constant, irrespective of the level of continuity.
D) The degree of customer learning first decreases and then increases as the continuity of innovation increases.

Question 28

Under _____, customers build the desired product, get an assessment of the resulting price, and state their likelihood of making a purchase.

A) virtual product testing
B) wildcat operation
C) benchmarking
D) situation analysis

Question 29

Planters sell the same peanuts to all final customers, but modify the packaging depending on the size of the distributor. This is an example of _____.

A) mass production
B) product differentiation
C) lean production
D) mass customization

Question 30

During innovation diffusion, the _____ are the last customers in the market to try an innovation.

A) light users
B) laggards
C) late majority
D) rotators

Question 31

When a firm chooses an aggressive entry to launch a new product:

A) most of the promotional dollars are spent early.
B) most of the resources go to stimulating repeat purchases.
C) the firm's spending strategy is too stingy.
D) the firm maybe uncertain about the capability of its sales force.

Question 32

Some firms capitalize on the end-user penchant by just launching a product and following up to see who the buyers are, then focusing their promotions accordingly. This is an example of a(n) _____.

A) wildcat operation
B) rollout strategy
C) enhancement strategy
D) butt-on operation

Question 33

Markets segmented based on variables like values, activities, and lifestyles can be best described as using _____.

A) end-use segmentation
B) geographic and demographic segmentation
C) psychographic segmentation
D) benefit segmentation

Question 34

The first 5 to 10 percent of customers who adopt a new product are referred to as the _____.

A) innovators
B) early majority
C) early adopters
D) laggards

Question 35

Zircon Motors Inc. destroyed its prior branding as a manufacturer of economy automobiles when it planned to introduce Zircon Mova, a premium car, targeted at the high-income customer group. This is an example of a(n) _____ of market replacement.

A) bait-and-switch strategy
B) aggressive strategy
C) butt-on strategy
D) rollout strategy

Question 36

Which of the following seeks to assure new product success by encouraging existing consumers to switch to the new product?

A) Bait marketing
B) Market Skimming
C) Customer migration
D) Consumer movement

Question 37

America First Electronics Inc. (AFE) is preparing to launch a set of new-to-the-world medical devices that are based on the same technology. These devices promise to revolutionize the healthcare industry. AFE must ideally attempt to stimulate:

A) primary demand for the product category.
B) joint demand for the product category.
C) selective demand for the product category.
D) replacement demand for the product category.

Question 38

With reference to the classic diffusion theory of Everett Rogers, the _____ of a product indicates how easy it is for a customer to purchase and use the trial portions of the product.

A) complexity
B) compatibility
C) observability
D) divisibility

Question 39

_____ information in combination with brand perceptions can be very helpful in developing a product positioning strategy.

A) End-use segment
B) Geographic segment
C) Demographic segment
D) Benefit segment

Question 40

BlueBeak Corp. deliberately seeks out very small targets with unique purchase patterns. The firm targets _____.

A) macromarkets
B) capital markets
C) micromarkets
D) commodity markets

Question 41

What is brand equity? Discuss its importance.

Question 42

Which of the following contradicts the concept of an umbrella brand strategy?

A) Mass brand strategy
B) Generic brand strategy
C) Corporate brand strategy
D) Individual brand strategy

Question 43

A package design strategy that uses key designs or some other packaging elements to integrate the packaging of several individual items is best known as _____.

A) uniform packaging
B) family packaging
C) customized packaging
D) retail packaging

Question 44

One of the methods to position a product in the marketplace is to use attributes. In this context, which of the following is an attribute?

A) Benefits
B) Surrogates
C) Expert opinions
D) Metaphors

Question 45

In the context of micromarketing and mass customization, list David Olson's classification of food buyers.

Question 46

Which of the following would help a firm keep a trademark forever, even if another firm later displays proof of prior use?

A) Bona fide intent
B) Registration
C) Service mark
D) Private branding

Question 47

Brand names are important assets that provide value to both a firm and its customers, as they communicate quality, build positive brand images, and encourage customer loyalty. This value is known as _____.

A) liquid asset
B) brand mark
C) brand equity
D) capital gain

Question 48

With the help of examples, briefly describe the alternative ways to segment a market.

Question 49

Describe the various types of demand sought based on the different levels of product newness.

Question 50

Which of the following statements is true of a trademark?

A) A word string such as "just do it" is a trademark.
B) The last user of a trademark has exclusive rights over the trademark.
C) Technically speaking, services have trademarks.
D) Trademark is a description of product attributes in detail.

Question 51

A dog food is positioned as "the one with as much protein as 10 pounds of sirloin." This is an example of a(n) _____.

A) opinion
B) feature
C) function
D) benefit

Question 52

Businesses are using a(n) _____ when they put their corporate name on every product they make.

A) customized brand strategy
B) umbrella brand strategy
C) flagship brand strategy
D) individual brand strategy

Question 53

Discuss the crossing the chasm model proposed by Geoffrey Moore.