Deck 17: Implementation of the Strategic Plan

Question 1

Before introducing its new products,the sales force of the Seri Corporation gives middlemen a "heads up" that a new product or version is coming.The firm's action can be seen as an example of _____.

A)signaling
B)illegal advertising
C)a promo piece
D)whistleblowing

Answer 1

A

Question 2

The stage of the launch cycle that links the cycle back to the product life cycle (PLC)is called _____.

A)preannouncement
B)early growth
C)announcement
D)beachhead

Answer 2

B

Question 3

Service firms and direct-selling manufacturers usually have a very complex communications task because they involve a host of resellers.

Answer 3

False

Question 4

Large firms are more likely to preannounce than firms with smaller share.

Question 5

Preannouncement can be used to block a competitive entry.

Question 6

Indirect network externalities exist if product sales are dependent on the number of people that have adopted it.

Question 7

Indirect network externalities exist if:

A)the target market of the product is extremely small.
B)the product is an imitation of a popular product.
C)product sales are dependent on sales of complementary products.
D)the profit margin for the product is very high.

Question 8

Information-based promotion is typically used for products with low relative advantage and low compatibility.

Question 9

In a penetration price strategy,the price is clearly low and is designed to buy one's way into the market.

Question 10

When a firm removes competitors' products from customer shelves to fill them with its own products,it is known as stocklifting.

Question 11

A customer-based sales organization requires more of the hard-sell pushing that product-based sales forces can provide.

Question 12

Selective distribution is typically used for products with low relative advantage.

Question 13

In most of the cases,awareness is the necessary first step toward adoption.

Question 14

There will be more preannouncing in industries that are very competitive.

Question 15

Training of sales and other promotional people,building service capability,and arranging for stocking of the product at the reseller level takes place during the _____ stage.

A)beachhead
B)prelaunch
C)early growth
D)late growth

Question 16

"Trial" is the stumbling point for most products that fail;and it is the cause of winning products not winning a great deal more.

Question 17

The launch of a "defensive addition" designed to increase penetration in existing markets features a broad product assortment,a new brand name and distribution channels,and a higher price.

Question 18

Which of the following period of a planned sequential announcement can typically be seen as the start of advertising?

A)Prototype testing
B)Anticipation
C)Nondisclosures
D)Promo pieces

Question 19

A key requirement of a trial is that it must have some "cost" associated with it.

Question 20

Early growth is the second stage of the launch cycle.

Question 21

Over the last several years,under the prodding of very large buyers,business firms are reluctantly turning to a new mode of customer contact.In this mode,each rep sells a longer line,but brings to the customer a team of company people who can address customer problems.Identify the mode of customer contact in discussion.

A)Customer-based sales forces
B)Product-based sales forces
C)Line-based sales forces
D)Profit-based sales forces

Question 22

Typically,the copy strategy statement should be written by _____.

A)the finance manager
B)the product development / launch team
C)the CEO
D)copywriters

Question 23

Which of the following promotional approaches is best suited for cases where awareness will stimulate trial?

A)Publicity
B)Sampling
C)Couponing
D)Advertising

Question 24

In terms of launch tactics,pharmaceutical firms put the bulk of their money into:

A)customization.
B)personal selling.
C)technical research.
D)manufacturing process development.

Question 25

Large,important retailers often sell their scarce shelf space by charging manufacturers _____ allowances.

A)slotting
B)brand
C)inventory
D)promotional

Question 26

The best way to ensure awareness and trial is to:

A)provide expensive stimuli.
B)have a new sales force for every new product.
C)create a good solution for a real problem.
D)employ aggressive pricing policies.

Question 27

Firms attempting to increase penetration in existing markets are most likely to be emphasizing _____.

A)defensive additions
B)offensive improvements
C)preannouncements
D)new-to-the-world products

Question 28

A new brand name and distribution channel(s),coupled with a higher price indicates the launch of a(n)_____.

A)defensive addition
B)offensive improvement
C)me-too product
D)innovative new product

Question 29

All of the following statements regarding resellers are true EXCEPT:

A)most resellers do a large volume of business in a standardized way with a small margin.
B)most goods use resellers,such as distributors and retail dealers.
C)the thinking of resellers should be represented in the product development process.
D)most resellers are willing to change their systems in order to acquire new products for distribution.

Question 30

In most cases,the first step toward adoption is _____.

A)launch
B)announcement
C)trial
D)awareness

Question 31

In the software field,vaporware refers to a product:

A)that is signaled but not delivered until much later,if ever.
B)which is released in to the market without beta testing.
C)which is a low-cost imitation of a successful product.
D)which has few bugs.

Question 32

Launch tactics planning includes all of the following EXCEPT:

A)selecting the new product ideA.
B)selecting distribution channels.
C)training salespeople.
D)setting price.

Question 33

Which of the following launch strategies has the objective of erecting barriers to entry?

A)The defensive addition
B)The offensive improvement
C)Issuing promo pieces
D)Skimming

Question 34

Which of the following statements is true regarding preannouncements?

A)Large firms are more likely to preannounce than firms with smaller share.
B)There will be more preannouncing in industries that are very competitive.
C)There will be less preannouncing where switching costs are high.
D)Preannouncement can be used to block a competitive entry.

Question 35

Which of the following promotional launch tactics is most likely to be used by a firm if product advantages must be learned through usage and experience?

A)Advertising
B)Sampling
C)Coupons
D)Publicity

Question 36

When a firm removes competitors' products from customer shelves to fill them with its own products,it is known as _____.

A)illegal distribution
B)stocklifting
C)slotting
D)stocking

Question 37

Which of the following techniques is typically used for increasing the distributor's unit margin?

A)Offer to prepay allowances to save interest
B)Provide managerial training
C)Preprice the merchandise
D)Use pull techniques

Question 38

While launching a new product,intensity of coverage is an important issue in cases where:

A)warranty / maintenance service needs to be offered easily.
B)the product is complex.
C)the product is relatively new to the world.
D)customers need training for using the product.

Question 39

Announcement kicks off the _____ phase of the launch cycle.

A)introduction
B)growth
C)beachhead
D)product testing

Question 40

_____ is the term most widely used to cover all of the information and attitude effort put into changing end-user perceptions.

A)Beachhead
B)Copy strategy
C)Communications
D)Preannouncing

Question 41

What are the various types of launch tactics used for promotion?

Question 42

What are the various new product price strategies?

Question 43

A product having high compatibility and high relative advantage would involve _____ promotion.

A)risk-based
B)awareness
C)information-based
D)usage-based

Question 44

_____ is the stumbling point for most products that fail;and it is the cause of winning products not winning a great deal more.

A)Technical support
B)Distribution
C)Advertising
D)Trial

Question 45

Which of the following pricing strategies involves a very high price,intended to stay that way,with clear product differentiation?

A)Premium pricing
B)Skimming pricing
C)Penetration pricing
D)Meet the market pricing

Question 46

A price clearly above the market,but appropriate to a differentiated product,nonthreatening to competition,and with room for some price manipulations,characterizes this pricing strategy.

A)Premium pricing
B)Penetration pricing
C)Skimming pricing
D)Competitive pricing

Question 47

Which of the following new product characteristics probably has the greatest influence on trial rates?

A)Relative advantage
B)Complexity
C)Divisibility
D)Communicability

Question 48

Skimming pricing is best recommended for products having:

A)low relative advantage and low compatibility.
B)high relative advantage and high compatibility.
C)high relative advantage and low compatibility.
D)low relative advantage and high compatibility.

Question 49

If target market buyers do a serious trial on a new item,and if there is previous assurance from the product use test that people would like it,_____ is virtually assured.

A)increased competition
B)repeat buying
C)premium pricing
D)market leadership

Question 50

Briefly describe trial.

Question 51

Describe three common patterns for launch strategies and tactics.

Question 52

Discuss the tactics used for launching a product with low relative advantage and low compatibility.

Question 53

Trial of a new product:

A)involves its large scale usage.
B)is only done under laboratory conditions.
C)permits the customer to verify claims about the product.
D)must have no "cost" associated with it.

Question 54

While launching a product with low relative advantage and low compatibility:

A)one should not delete the older product from the market quickly.
B)the product promotion should be information based.
C)a broad product assortment should be provided.
D)selective distribution should be useD.

Question 55

Which of the following types of promotion is typically used for a product with low relative advantage and high compatibility?

A)Risk-based
B)Awareness
C)Information-based
D)Usage-based