Deck 9: Product Management

Question 1

A "brand manager"and "category manager"are the same thing in marketing.

Answer 1

False

Question 2

The development and implementation of a marketing activity for a specific product or group of products is the responsibility of a category manager.

Answer 2

False

Question 3

In a regional marketing management system, decision making is decentralized.

Answer 3

True

Question 4

Maria manages Duncan Hines cake mixes. She is responsible for their line of complete cake mixes, their brownie mixes, and their plain and frosted icings. Maria has the responsibilities of a category manager.

Question 5

Jake is responsible for Quaker Oats's muffin mixes. He is a category manager.

Question 6

A household products manufacturer separates its products according to the needs of customer groups. This manufacturer is using a target market management system.

Question 7

A category manager is an individual who is assigned the responsibility for the development and implementation of marketing programs for a specific product.

Question 8

Category managers are often responsible for the management of the brand managers in their company.

Question 9

A "brand manager"and "product manager"are the same thing in marketing.

Question 10

Time, sales, and profits are the determinants of a product's stage in the "product life cycle."

Question 11

The sequential addition of products to a product line is called line cultivation.

Question 12

All products have a similar life cycle.

Question 13

Products or services undergo only marginal growth during the maturity stage.

Question 14

A look-alike product that is designed to copy or mimic an existing product is called a castoff.

Question 15

The stages a product goes through from introduction to its withdrawal is known as the product continuum.

Question 16

Companies usually reduce marketing support in the mature stage of the product life cycle.

Question 17

A firm can extend its product life cycle by altering the product somewhat.

Question 18

A new product or service rejected very quickly by consumers is called an instant bust.

Question 19

The product cycle for fashion is recurring.

Question 20

Peter was working on a financial projection for the first year his new product would enter the market. He kept coming up with negative numbers but then remembered that heavy marketing spending during the introduction stage is usually marked with losses.

Question 21

Once the George Foreman Grill entered the growth stage, the objective changed to generating brand preference and loyalty.

Question 22

Jennifer's product was launched three years ago and was finally starting to make profits for the company. The product is probably in the growth stage of the product life cycle.

Question 23

The beer market in Canada is classified as mature because sales have been stagnant for the past decade. Consumption in total has not increased despite several new brands entering the marketplace.

Question 24

The launch of a 100-calorie Cadbury Thins chocolate bar is an example of a product alteration to attract new markets.

Question 25

General Motors completely redesigned the Cadillac to give it a younger, sportier appearance. This is an example of a product improvement to extend the life cycle.

Question 26

Shannon is a middle-class consumer in her mid-40s; she is only willing to try products that have been around for a while. She is part of the late majority category of product adopters.

Question 27

In Canada the soft drink market has relatively flat sales from year to year. This is an indication that soft drinks are in the decline stage of the product life cycle.

Question 28

When Frito-Lay reformulated its offerings using cottonseed oil with new frying technologies the company was extending the life cycle of their chips.

Question 29

The new Mini (Cooper) relaunch by BMW is an example of the diffusion of innovation.

Question 30

The website MyStarbucksIdea.com is an example of concept development.

Question 31

The director of research and development contacted the new product brand manager to discuss the next step after brainstorming in developing a new product. The brand manager should suggest "screening."

Question 32

The brand manager responsible for new products was dreading the business analysis stage needed to bring his new product to market. This stage involves number crunching to estimate consumer demand and product profitability.

Question 33

Boeing would develop a prototype for a new airliner during the concept development and product testing stage of the new product development process.

Question 34

During the test marketing stage for a new home security system, the service provider would test the marketing plan for the service as well as the service itself.

Question 35

The tough decision on whether or not to cut the lifeline of a product should be based mainly on strategic fit and customer sentiment and emotions.

Question 36

The individual responsible for the marketing planning for a specific product or group of products is the

A) sales manager.
B) marketing manager.
C) venture development manager.
D) brand manager.
E) category manager.

Question 37

The individual responsible for the marketing planning of a group of related products is called the

A) marketing manager.
B) sales manager.
C) product manager.
D) brand manager.
E) category manager.

Question 38

Which of the following statements about the trends in managing products is correct?

A) Brand management is replacing category management as the preferred structure.
B) The trend is to separate various organizational structures.
C) There is a trend toward customer-centric management structures.
D) There is a trend toward the brand management system.
E) There is a trend toward direct marketing.

Question 39

In a regional marketing management system, ________ play(s) a key role.

A) consensus decision making
B) geographics
C) demographics
D) psychographics
E) operational functions

Question 40

The phrase "think globally, act locally"means that brand and marketing managers

A) should put local concerns ahead of global concerns.
B) should ensure that strategies do not vary from country to country.
C) need to realize that all strategies must be localized.
D) should allow managers in other countries to make all strategic decisions.
E) may be influenced by the decisions of managers in other countries.

Question 41

Different customers with different needs require different strategies. This is a description of

A) global management.
B) differential marketing management.
C) marketing services management.
D) target market management.
E) variable needs marketing management.

Question 42

Brad's job description states that he is responsible for developing and implementing the marketing programs for Bick's Pickles, the brand he has been hired to manage. Brad's job title is

A) category manager.
B) vice-president of marketing.
C) marketing director.
D) brand manager.
E) sales manager.

Question 43

Molson Breweries has established different companies to manage four distinct regions in Canada. Each region has its own marketing and sales staff. This system is called

A) category management.
B) local management.
C) marketing services.
D) product management.
E) regional management.

Question 44

Procter & Gamble manufactures a variety of brands under one category. An example is shampoo with brands such as Pantene, Herbal Essences, and Head and Shoulders. For shampoo, Procter & Gamble would appropriately use

A) marketing services management.
B) brand management.
C) category management.
D) integrated management.
E) regional management.

Question 45

A pharmaceutical company uses a different marketing mix for doctors than for its end users. This pharmaceutical company is practising

A) product modification.
B) differential marketing.
C) innovative response management.
D) product stretching.
E) target market management.

Question 46

Procter & Gamble phased out the Royale brand name in Canada and replaced it with the global Charmin' brand in bathroom tissue and the Puffs brand in facial tissues. This is an example of

A) global management.
B) category management.
C) regional management.
D) marketing management.
E) target market management.

Question 47

Kraft Foods Inc. moved toward a North American-wide marketing management system. This is an example of

A) universal brand management.
B) category management.
C) continental management.
D) regional management.
E) retrenchment.

Question 48

Ideas that are developed in one country may be considered for another so that economies of scale can be realized. This is a demonstration of

A) differential marketing management.
B) global management.
C) customer-centric marketing management.
D) regional marketing management.
E) target market management.

Question 49

In a target market management system,

A) the organization recognizes that different customer classes with different needs require different marketing strategies.
B) there are no brand managers, only category managers.
C) there is considerable internal competition between brands for marketing services.
D) the organization streamlines services such as secretarial, accounting, and consulting services.
E) the responsibility for promoting a product is outsourced.

Question 50

There is often negotiation between manufacturers and retailers for shelf space. For example, a company like PepsiCo may recommend that retailers display their snacks and drinks close to each other. Typically a ________ would be in charge of managing this strategy.

A) sales manager
B) product manager
C) category manager
D) merchandise manager
E) brand manager

Question 51

The type of product management system used by a company is dependent on

A) the technology available to the organization.
B) the industry in which the organization operates.
C) the products offered by the organization.
D) an organization's size, growth objectives, and resources.
E) an organization's budget, strategy, and relevant legislation.

Question 52

Lutex markets textiles to the hospitality industry. They manufacture comforters, duvets, pillows, and window treatments for hotels. They have found that tastes and preferences are much different from province to province. Which product management system is most appropriate for this company?

A) fashion management
B) category management
C) brand management
D) target market management
E) regional management

Question 53

Beaulieu manufactures and sells area rugs to home centres, furniture chains, and also independent furniture and floor covering stores. Since these customers have very diverse service and product needs, which organization system for product management is most appropriate?

A) target market management
B) category management
C) regional marketing management
D) brand management
E) global marketing management

Question 54

"The sequential addition of products to a product line to increase the line's depth or width"is a definition of

A) product integration.
B) depth alignment.
C) sequential marketing.
D) product mix modification.
E) product stretching.

Question 55

Wilson Sporting Goods differentiated its golf balls from the competition by using titanium compounds. The latest version of the ball is the Titanium Double Ti. This evolution was a result of

A) product replacement.
B) product modifications.
C) product maintenance.
D) differential stretching.
E) product stretching.

Question 56

The Cheerios product line has been extended from its basic product to Honey Nut Cheerios, Apple Cinnamon Cheerios, Multigrain Cheerios, and Frosted Cheerios. This is an example of

A) sequential marketing.
B) brand evolution.
C) product penetration.
D) product overload.
E) product stretching.

Question 57

A company adds a line of powdered beverages to its line of frozen juices. This addition is an example of

A) product integration.
B) sequential marketing.
C) product stretching.
D) market development strategy.
E) product mix modification.

Question 58

What is a good way to practise planned obsolescence?

A) reposition the brand to lengthen its life
B) encourage premature abandonment
C) predict the end of profitability
D) introduce an improved version
E) stretch the product line

Question 59

When Colgate adds another toothpaste flavour to meet the unique needs of a particular customer group, the brand manager is demonstrating

A) the product life cycle.
B) product management.
C) product stretching.
D) product mix modification.
E) product integration.

Question 60

Dove was originally a facial bar soap. Unilever has developed products in the body wash, hair care, moisturizer, and antiperspirant segments with the Dove brand name. Unilever has engaged in ________ with this brand.

A) functional launching
B) product stretching
C) commercialization
D) business analysis
E) innovation diffusion

Question 61

The stages or path that a product follows from introduction to the market to its eventual withdrawal is called

A) diffusion.
B) the product planning process.
C) the product life cycle.
D) the adoption process.
E) the classification of goods.

Question 62

The stage of the product life cycle that a product is in is determined by three variables. These are

A) time, sales, and profit.
B) market share, positioning, and sales volume.
C) market share, time, and sales.
D) time, price, and sales.
E) sales, profit, and price.

Question 63

Which of the following statements about the introduction stage of the product life cycle is correct?

A) Losses instead of profit are common.
B) The immediate objective is to reflect the company's image through the new product.
C) Marketing expenses are at a minimum.
D) Setting prices low is a common way to encourage consumer acceptance.
E) Sales growth is typically rapid.

Question 64

During the introduction stage of the product life cycle

A) distribution is widespread since retailers accept any item that is new.
B) distribution is the most crucial focus.
C) most consumers are anxious to try the new product.
D) a lot of money is spent on promotion; place is emphasized in a later stage.
E) money is invested in the product to create demand for the product.

Question 65

During the decline stage of the product life cycle,

A) sales drop rapidly, but profit margins are protected.
B) sales remain steady while profits erode.
C) advertising and promotion activity is maintained to minimize sales declines.
D) the focus of marketing activity is to reverse the decline.
E) marketing support is cut.

Question 66

A common strategy for extending the product life cycle is

A) organizational restructuring.
B) lowering quality to allow lower prices.
C) changing the product's brand name.
D) eliminating marketing expenses to cut costs.
E) looking for new markets.

Question 67

The gradual acceptance of a product from introduction to market saturation is called

A) diffusion of innovation.
B) brand awareness.
C) adoption.
D) absorption.
E) positioning.

Question 68

Laggards represent ________ percent of the market.

A) 16
B) 26
C) 34
D) 44
E) 55

Question 69

The cycle of a fashion is

A) long.
B) short (a few weeks).
C) reasonably short (one or two seasons).
D) recurring.
E) fluctuating.

Question 70

A product that has a reasonably short life cycle, perhaps one selling season or a few seasons, and one that is financially successful, is a(n)

A) style.
B) fad.
C) planned cycle.
D) fashion.
E) instant bust.

Question 71

Which product life extension tactic did Frito-Lay use with regards to their salty snacks like Doritos, Tostitos, and Lays?

A) product alteration
B) attracting a new market
C) increasing distribution
D) humour
E) altering the product

Question 72

In the ________ stage of the product life cycle, a manufacturer of a digital camera offers trade allowances to persuade more distributors to carry the product.

A) introduction
B) growth
C) mature
D) development
E) decline

Question 73

Apple generates buzz for its new products several months before the products are available. This activity takes place during the ________ stage of the product life cycle.

A) introduction
B) pre-introduction
C) developmental
D) growth
E) mature

Question 74

The analysis showed that sales had peaked about seven years earlier and then remained at a constant level until a rapid decrease in the last year. This analysis suggests the product is moving into the ________ stage of the product life cycle.

A) decline
B) recurring
C) mature
D) introduction
E) growth

Question 75

Old World Tea is one of three competitors in the gourmet tea market. Its sales are rapidly rising and profits are now starting to materialize. It is a brand leader and advertises its wide variety of flavours. Old World Tea is in the ________ stage of the product life cycle.

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

Question 76

Frito-Lay's reformulation of several of its brands of potato chips to improve taste is an example of

A) quality modification.
B) repositioning.
C) new product development.
D) feature improvement.
E) an increase in promotions.

Question 77

Why did Frito-Lay reformulate its chips by using cottonseed oil and new frying technologies to create a better-tasting, crispier, and crunchier chip?

A) because they needed to differentiate in a growth market
B) for a planned obsolescence strategy
C) to revive the brand from a declining market
D) to remain competitive in a mature market
E) to develop a higher margin premium product

Question 78

When a business offers customers more volume or weight for the same price as the original size, this is called a

A) size promotion.
B) bonus pack.
C) volume discount.
D) buyer's discount.
E) package deal.

Question 79

What was the main purpose of Cadbury Adams's introduction of a 100-calorie chocolate bar (Cadbury Thin)?

A) to increase awareness in the growth stage
B) to enter new market segments
C) to convert non-users
D) to promote trial by new customers
E) to reposition the brand in the mature stage

Question 80

Based upon the results from test marketing, marketers expect it to take two years for their product to progress from introduction to market saturation. This period of gradual acceptance is known as

A) the product life cycle.
B) market absorption.
C) diffusion of innovation.
D) commercialization.
E) market screening.