Deck 7: Product Strategy

Question 1

Firms using the _____ approach during the decline stage of the product life cycle will gradually reduce marketing expenditures and use a less resource-intensive marketing mix.

A) divesting
B) harvesting
C) repositioning
D) life extending
E) balanced

Answer 1

B

Question 2

Which stage of the product life cycle has 1) establishing a strong, defensible market position and 2) achieving financial objectives that repay investment as its main priorities?

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

Answer 2

B

Question 3

Mallory is an avid collector of antiques. In fact, she spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory, antiques are a perfect example of a:

A) convenience product.
B) shopping product.
C) supplemental product.
D) influential product.
E) specialty product.

Answer 3

E

Question 4

Without a doubt, the most important tool of product differentiation is:

A) the product's image.
B) the brand.
C) the product's features.
D) perceptual mapping.
E) the product's price.

Question 5

With respect to product descriptors, the product's _____ communicate(s) how the product behaves, hopefully in a fashion that is distinctive and appealing to customers.

A) features
B) benefits
C) image
D) position
E) advantages

Question 6

Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality. Why is this so?

A) because services depend on people for their delivery
B) because services cannot be managed due to their intangibility
C) because services are extremely time-and-place dependent
D) because service marketers cut corners to reduce expenses
E) because service marketers set unrealistic customer expectations

Question 7

One way of looking at _____ is to consider the marketing and financial value associated with a brand's position in the marketplace.

A) brand equity
B) brand identity
C) brand equality
D) brand value
E) brand capitalization

Question 8

As a tool of positioning strategy, perceptual maps illustrate two basic issues. First, they indicate products/brands that are similar in terms of relative mental position. Second, they illustrate:

A) which brands occupy the same relative space.
B) how competing brands imitate one another.
C) voids in the current mindscape for a product category.
D) how long a brand has held its relative mental image.
E) how much longer a brand is likely to hold its relative mental image.

Question 9

Why would a firm offer a deep assortment of products in its product portfolio?

A) to attract a wide range of customers and market segments
B) to capitalize on the firm's reputation
C) to diversify its risk
D) to maximize differentiation across its product lines
E) None of the above

Question 10

Since the introduction of the Atkins diet, many food and beverage marketers have focused on the low carbohydrate counts in their products. Many of these firms have launched promotional campaigns that directly compare their products to competing products having higher carbohydrate counts. In terms of product positioning, these promotional campaigns are designed to:

A) move the firm and its products to a new position.
B) strengthen the current position of the firm and its products.
C) launch an attack on competing firms and their products.
D) raise the bar of customer expectations.
E) reposition competing firms and their products.

Question 11

One of the most common marketing goals during the introduction stage of the product life cycle is to:

A) conduct test marketing studies.
B) maintain market share.
C) find new uses for the product.
D) engage in customer education activities.
E) spread misleading information about competing products.

Question 12

Why is the demand for most services--such as popular restaurants--extremely time-and-place dependent?

A) because popular services typically lack sufficient capacity
B) because services cannot be stored for future use
C) because customers must be present for service to be delivered
D) because service customers are typically unsure of their needs
E) because competing services force customers to make tradeoffs between quality and time

Question 13

When Meghan went to buy groceries, she found everything on her list except Pampers diapers. While the store had other competing brands in stock, Meghan left and drove five miles to the next store where she found the Pampers. It appears that Meghan exhibits a high degree of _____ for Pampers diapers.

A) brand recognition
B) brand preference
C) brand insanity
D) brand equity
E) brand insistence

Question 14

During the maturity stage of the product life cycle, a firm has four general goals that can be pursued. Which of the following IS NOT one of these options?

A) divest the product
B) generate cash flow
C) steal market share
D) hold market share
E) increase share of customer

Question 15

If you purchase a notebook computer from Dell, you will note several brand insignias on the outside, such as Dell, Intel, and Microsoft Windows. What type of branding strategy does this example represent?

A) co-branding
B) brand licensing
C) co-marketing
D) brand affinity
E) brand collaboration

Question 16

Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?

A) idea generation
B) development
C) screening and evaluation
D) test marketing
E) commercialization

Question 17

Which of the following IS NOT a function or potential function of packaging?

A) protection
B) storage
C) convenience
D) integration
E) co-branding

Question 18

Although the product is at the heart of marketing strategy, it is important to remember that the product offering itself is of little value to customers. The real value that a product offering come from:

A) its superiority to competing products.
B) its ability to further the image of the organization.
C) its value (good quality at a low price).
D) its ability to deliver benefits that enhance a customer's situation.
E) its quality.

Question 19

To compete in the fast-growing hybrid segment, Honda introduced the Civic Hybrid with unique styling and great fuel economy. Which product development strategy has Honda implemented?

A) Repositioning
B) New product line
C) Product innovation
D) Product improvement
E) Product line extension

Question 20

Most firms today compete in mature markets characterized by commoditization. In these cases, the _____ typically becomes incapable of differentiating the product offering from those of the competition.

A) extended product
B) core product
C) supplemental products
D) experiential products
E) tangible products

Question 21

Explain the key differences between product differentiation and product positioning. Other than branding, what are other factors on which product differentiation can be based?

Question 22

Discuss the benefits associated with offering a large portfolio of products. What are some of the key issues involved in managing the product portfolio?

Question 23

Identify the unique characteristics of services (relative to tangible goods) and list the marketing challenges created by each characteristic.

Question 24

Why is the product life cycle an important consideration in selecting and developing a marketing strategy? What are the core differences among the PLC stages that force marketers to alter their marketing programs over time?

Question 25

Compare and contrast brand loyalty and brand equity, as well as how these concepts are related. Must a brand possess high brand loyalty in order to possess high brand equity? Explain.