Deck 14: Developing and Marketing Products

Question 1

Which of the following is a marketplace of underground transactions that typically appear because a product is either illegal or tightly regulated?

A) black market
B) niche market
C) two-sided market
D) vertical market

Answer 1

A

Question 2

A company that makes its marketing program elements uniform,targeting an entire region with similar products,is demonstrating ________.

A) customization
B) segmentation
C) standardization
D) differentiation

Answer 2

C

Question 3

The value customers obtain from a product is heavily influenced by the image of the country in which the product is manufactured.

Answer 3

True

Question 4

Counterfeiting is common among highly visible brand-name consumer goods.

Question 5

A brand name can function as a form of intellectual property.

Question 6

Which of the following statements is true about international promotions?

A) Most companies standardize all aspects of their international promotions to cut costs.
B) Firms that standardize advertising often control campaigns from the home office.
C) Companies that adapt their advertising to different markets project a consistent brand image.
D) Companies discourage blending product and promotional strategies in a communication process.

Question 7

Because developing nations often are weakest in enforcing such legal protections,they normally have the most active counterfeiting markets.

Question 8

All company and product brand names are made up of morphemes.

Question 9

Which of the following is true of counterfeit goods?

A) Developed nations normally have the most active counterfeiting markets.
B) Counterfeiting is more common among less visible local brands than global brands.
C) Most counterfeit products are imitations of products that normally enjoy legal protection.
D) Engineered industrial components and medicines are among the few categories of products that cannot be counterfeited.

Question 10

Product differentiation is more likely when nations share the same level of economic development.

Question 11

The rapid pace of technological innovation today extends the life cycles of products.

Question 12

Describe any four factors that affect international product strategies.

Question 13

________ are imitation products passed off as legitimate trademarks,patents,or copyrighted works.

A) Giffen goods
B) Counterfeit goods
C) Inferior goods
D) Intangible goods

Question 14

Governments in developing countries impose fewer consumer protection laws in order to ________.

A) hold down production costs and consumer prices
B) enable companies to focus on profit-making exclusively
C) decrease the flow of foreign direct investment into the country
D) decrease the complexity of the legal procedures for foreign direct investment

Question 15

________ refers to anything that disrupts the audience's ability to receive and interpret a promotional message.

A) Noise
B) Interpolation
C) Feedback
D) Resonance

Question 16

Products could be in the decline stage in one country,while at the same time be in the growth stage of the product life cycle in another country.

Question 17

Discuss how a national business environment can influence a firm's decision to standardize or differentiate its product.How do cultural differences impact product strategies?

Question 18

Which component of the marketing mix encompasses all efforts by an international firm to enhance the desirability of its products among potential buyers?

A) product
B) price
C) place
D) promotion

Question 19

Which element of the marketing mix includes the development of the tangible and intangible features that meet customer needs in diverse markets?

A) product
B) pricing
C) promotion
D) place

Question 20

Explain the effect of counterfeit goods and black markets on international product strategies.

Question 21

Which of the following is a push strategy that companies use to promote their products?

A) mass media advertising
B) direct marketing techniques
C) free trial packages
D) retail product stocking

Question 22

When the receiver re-translates the sent message he/she is engaging in ________.

A) preprocessing
B) decoding
C) parsing
D) compiling

Question 23

A pull rather than a push strategy is most likely preferable when ________.

A) self-service is not predominant
B) the price of a product is high relative to incomes
C) there are few governmental restrictions on advertising
D) there are a large number of languages and a low literacy rate

Question 24

As a promotional strategy,manufacturers of products that are commonly sold through department and grocery stores often use ________.

A) a push strategy
B) a pull strategy
C) retrenchment strategy
D) stability strategy

Question 25

Which of the following occurs when an idea to be communicated is translated into images,words,and symbols?

A) compiling
B) encoding
C) parsing
D) processing

Question 26

Which of the following communication strategies adapts both the product and its marketing communication to suit the target market?

A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation

Question 27

Which of the following reflects the correct sequence of the marketing communication process?

A) promotional message; encoding; decoding; feedback
B) encoding; promotional message; decoding; feedback
C) promotional message; decoding; feedback; encoding
D) encoding; decoding; promotional message; feedback

Question 28

A promotional strategy designed to create buyer demand that will encourage channel members to stock a company's product is called a ________.

A) pull strategy
B) push strategy
C) retrenchment strategy
D) stability strategy

Question 29

Which of the following communication strategies uses the same home-market product and marketing promotion in target markets?

A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation

Question 30

A push strategy for international sales is most likely preferable to a pull strategy when ________.

A) there are few prohibitions on advertising
B) the price of the product is high relative to incomes
C) people rely on friends' opinions before buying a product
D) literacy rates are high

Question 31

Which of the following circumstances would best require a pull strategy to be implemented for product promotion?

A) channel members wield relatively lesser power compared to that of producers
B) buyers display a great deal of brand loyalty to a particular product
C) distribution channels are short
D) buyers need to be informed about the features of a product before purchase

Question 32

A ________ strategy can be implemented successfully for communicating promotional messages only if a sufficiently large and profitable market segment exists.

A) dual extension method
B) product extension/communications adaptation method
C) product adaptation/communications extension method
D) dual adaptation method

Question 33

Which term refers to the mix of advertising,personal selling,sales promotion,and public relations used by a firm to market its products?

A) marketing mix
B) promotion mix
C) public relations mix
D) communications mix

Question 34

A ________ is used for a product's promotion when there are many levels of intermediaries in its distribution channel.

A) push strategy
B) pull strategy
C) retrenchment strategy
D) stability strategy

Question 35

A ________ strategy is best suited for the promotion of industrial products because potential buyers usually need to be informed about a product's special features before purchase.

A) push
B) pull
C) stability
D) differentiation

Question 36

The term ________ refers to a company's efforts to reach distribution channels and target customers through communications such as personal selling,advertising,public relations,and direct marketing.

A) social marketing
B) viral marketing
C) promotion mix
D) positioning

Question 37

Which of the following communication strategies adapts a product to the requirements of the international market while retaining its original marketing communication?

A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation

Question 38

The process of sending messages about products to target markets is called ________.

A) customer relations
B) customer service
C) market segmentation
D) marketing communication

Question 39

Which of the following communication strategies expands the same product into new target markets but alters its marketing promotion?

A) product/communications extension
B) product extension/communications adaptation
C) product adaptation/communications extension
D) product/communications adaptation

Question 40

Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users?

A) differentiation strategy
B) retrenchment strategy
C) push strategy
D) pull strategy

Question 41

Scenario: Silk Industries LLC
Silk Industries LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company is well-recognized and consists of loyal customers worldwide. The management is considering different types of promotional strategies for the two product divisions.
Which of the following would be most appropriate for Silk Industries products sold through grocery stores?

A) horizontal integration
B) vertical integration
C) push strategy
D) pull strategy

Question 42

Under the dual adaptation method,a company adapts its product to local requirements while retaining the product's original marketing communication.

Question 43

________ requires that an entirely new product be developed for the target market when many important differences exist between the home and target markets.

A) Product invention
B) Product adaptation
C) Dual adaptation
D) Dual extension

Question 44

A pull strategy is the most efficient promotional strategy when distribution channels are lengthy.

Question 45

Firms that standardize their advertising usually control campaigns from the home office.

Question 46

Scenario: Silk Industries LLC
Silk Industries LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company is well-recognized and consists of loyal customers worldwide. The management is considering different types of promotional strategies for the two product divisions.
If Silk Industries is interested in creating buyer demand that will encourage channel members to stock its products,it should employ ________.

A) a pull strategy
B) a push strategy
C) horizontal integration
D) vertical integration

Question 47

A push strategy is a promotional strategy designed to pressure channel members to promote a product to final users.

Question 48

Scenario: Silk Industries LLC
Silk Industries LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company is well-recognized and consists of loyal customers worldwide. The management is considering different types of promotional strategies for the two product divisions.
If Silk Industries provides a promotional allowance to its channel members to carry a product and promote it to final users,it is using ________.

A) pull strategy
B) push strategy
C) vertical integration
D) horizontal integration

Question 49

By ignoring important cultural nuances,companies can inadvertently decrease the potential for noise that can cloud the audience's understanding of their promotional message.

Question 50

A common example of a push strategy is the creation of consumer demand through a television advertising campaign.

Question 51

Dual extension method extends the same home-market product and marketing promotion into target markets.

Question 52

Effective communication is when the message received is understood in the same way that the sender transmitted.

Question 53

A push strategy is most appropriate when buyers display a great deal of brand loyalty toward one particular brand name.

Question 54

In marketing,advertising is a paid form of communication,done by an identifiable sponsor for the purpose of informing,persuading,influencing or reminding the target market about the product the firm is offering.

Question 55

The product adaptation/communications extension method adapts the product to suit the target market; however,it uses its original marketing communication.

Question 56

Emerging markets typically have fewer forms of mass media for use in implementing a pull strategy.

Question 57

Scenario: Silk Industries LLC
Silk Industries LLC comprises two major divisions: consumer products and industrial products. The consumer product line of the company is well-recognized and consists of loyal customers worldwide. The management is considering different types of promotional strategies for the two product divisions.
Which promotional strategy would be most appropriate for Silk Industries consumer product line?

A) horizontal integration
B) vertical integration
C) push strategy
D) pull strategy

Question 58

How does the dual extension method work as a promotional strategy?

Question 59

Using examples,explain the circular process of marketing communication.

Question 60

The marketing communication process involves encoding and decoding of the promotional message.

Question 61

Which of the following is also known as direct marketing?

A) an intensive channel
B) an exclusive channel
C) a zero-level channel
D) a two-level channel

Question 62

A(n)________ channel gives producers a good deal of control over the sale of their product by channel members such as wholesalers and retailers.

A) exclusive
B) intensive
C) two-level
D) selective

Question 63

Scenario: Old World Ltd.
Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.
If Old World wants to have its furniture sold through as many distribution outlets as possible,it should consider a(n)________ channel.

A) exclusive
B) intensive
C) one-level
D) zero-level

Question 64

A(n)________ channel creates a barrier that makes it difficult or impossible for outsiders to penetrate.

A) exclusive
B) intensive
C) selective
D) two-level

Question 65

A(n)________ channel places a single intermediary between the producer and the buyer.

A) intensive
B) exclusive
C) one-level
D) two-level

Question 66

Scenario: Old World Ltd.
Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.
Old World should pursue a(n)________ channel if it decides to greatly intensify its direct marketing efforts.

A) intensive
B) one-level
C) zero-level
D) selective

Question 67

A distribution strategy under which a company sells through as many outlets as possible,so that the consumers encounter the product virtually everywhere they go: supermarkets,drug stores,gas stations,and the like is called ________.

A) intensive channel
B) exclusive channel
C) zero-level channel
D) two-level channel

Question 68

Which of the following refers to planning,implementing,and controlling the physical flow of a product from its point of origin to its point of consumption?

A) customization
B) distribution
C) communication
D) promotion

Question 69

The physical path a product follows on its way to customers is called a channel of distribution.

Question 70

Service providers do not need distribution channels because they market intangible goods.

Question 71

________ refers to the number of intermediaries between producer and buyer.

A) Critical path
B) Channel length
C) Frequency
D) Value density

Question 72

A distribution channel in which a producer grants the right to sell its product to many resellers is referred to as a(n)________.

A) one-level channel
B) zero-level channel
C) exclusive channel
D) intensive channel

Question 73

Scenario: Old World Ltd.
Old World Ltd., a London-based furniture manufacturer, is establishing its global distribution, pricing, and promotion strategies. Being new to global business, the firm is seeking your help in making its decisions.
If Old World wants to grant the right to sell its furniture to only a limited number of resellers,it should consider a(n)________ channel.

A) intensive
B) exclusive
C) two-level
D) selective

Question 74

A(n)________ channel provides buyers with location convenience because of the large number of outlets through which a product is sold.

A) intensive
B) exclusive
C) one-level
D) zero-level

Question 75

Companies along a distribution channel that work together in delivering products to customers are called ________.

A) subsidiaries
B) intermediaries
C) value chains
D) value networks

Question 76

Differentiate between the push and pull promotional strategies.Explain the factors that determine whether the push or the pull strategy is appropriate in a given marketing environment.

Question 77

Describe the five communication strategies that companies commonly use and cite situations where the strategies are used.

Question 78

Briefly discuss the effects of globalization on international marketing activities and explain how a dual adaption method works as a promotional strategy.

Question 79

The physical path a product follows on its way to customers is called a(n)________.

A) distribution channel
B) demand chain
C) critical path
D) external value network

Question 80

A(n)________ channel does not create strong barriers to channel entry for other producers,nor does it provide much control over reseller decisions such as what competing brands to sell.

A) one-level
B) zero-level
C) exclusive
D) intensive