Chapter 11 Marketing

79 terms by David__Rios 

Create a new folder

Advertisement Upgrade to remove ads

Product life cycle refers to

a concept that describes the stages a new product goes through in the marketplace—introduction, growth, maturity, and decline product.

Lack of profit in the introductory stage of the product life cycle is very often the result of

large investment costs in product development.

The marketing objective for a product in the _________ stage of the product life cycle is to create consumer awareness and gain trial.

Introduction

Gillette spent $200 million in advertising to introduce the Fusion shaving system to male shavers. Such expenditures are often made to stimulate primary demand, or desire for _________, rather than for a specific brand, when there are no competitors with the same product.

The product class

For years when most consumers thought of cranberries, they thought of the Ocean Spray brand. Then Northland cranberry juice came on the market claiming that it was superior to the Ocean Spray brand. Northland was creating _________ demand for its cranberry products.

Selective

Which stage in the product life cycle is characterized by a rapid increase in sales and the appearance of competitors?

Growth

Which of the following is a characteristic of the growth stage of the product life cycle?

advertising shifts emphasis to stimulate selective demand

Changes appearing in the product, characteristically take place in the ________ stage of the product life cycle.

growth

In what stage of the product life cycle is it important to gain as much distribution of the product?

growth

What stage of the product life cycle do marginal competitors begin to leave the market?

Maturity

During the maturity stage of the product life cycle, profit declines because

there is fierce price competition among sellers

Sales and profits both exhibit a steady downward trend throughout which stage of the product life cycle?

Decline

Profits tend to consume a disproportionate share of management and financial resources relative to their worth throughout which stage of the product life cycle?

Decline

The shapes of the product life cycle for high-learning, low-learning, fashion, and fad products vary as does __________.

the actual length of time a given product stays in any given stage of the cycle

Interactive television with video-on-demand capabilities changes how people watch television and how consumers access the Internet. This technology requires significant customer education for most people. What type of a product life cycle would be associated with this product?

high-learning

A(n) _____________ product is one for which significant customer education is required and there is an extended introductory period.

high-learning

An alternative product life cycle that results from products that are easily imitated by competitors, consumers who readily understand their benefits, and for which the appropriate marketing strategy is to gain strong distributor outlets is characteristic of __________ products.

Low learning

Products that are introduced, decline, and seem to return are characteristic of the __________ type of product life cycle.

fashion

Products that experience rapid sales on introduction and then an equally rapid decline are called _________.

Fad products

Imagine Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available) and can be recharged by sunlight up to 5 times, after which they are meant to be discarded. Unfortunately, the production process cannot be patented, and competitors could arrive within a few months. Which of the following is the best description of the product life cycle of this product?

moderately slow introduction, followed by modest growth, gradually leveling off

The life cycle of a product depends on sales to _________.

consumers

The key idea behind diffusion of innovation is that

not all consumers accept a new product at the same time; adoption of a product spreads slowly throughout the population.

The classifications of innovator, early adopters, early majority, laggards, and late majority are all based upon

when they adopt a new product

For any product to be successful, it must be purchased by

Innovators and early adopters

As product adopters, innovators typically

venturesome, better educated than other product adopters, and use multiple information sources

As product adopters, members of the late majority typically

are skeptical and have below average social status

If a customer is reluctant to try a new product because he'd have to change his normal every day behaviors, the company is most likely facing a __________ barrier.

usage

There are several reasons why a consumer would be reluctant to purchase a new product. One example would be a value barrier. A value barrier occurs when

there is no incentive to change.

There are several reasons why a consumer would be reluctant to purchase a new product. One example would be a risk barrier. A risk barrier occurs when

there are physical, economic, or social risks

There are several reasons why a consumer would be reluctant to purchase a new product. One example would be a psychological barrier. A psychological barrier occurs when

there are cultural differences or affects on image

Another name for product manager is

Brand Manager

Introduced by Procter & Gamble in 1928, and used by such consumer goods firms as General Foods and PepsiCo and by industrial firms such as Intel and Hewlett-Packard, the product manager manages the marketing efforts for

a close-knit family of products or brands.

Strategies that might alter a product's characteristic such as its quality, performance, or appearance to increase the product's value to customers and increase sales are referred to as _____________.

product modification

Introduced by Procter & Gamble in 1928, and used by such consumer goods firms as General Foods and PepsiCo and by industrial firms such as Intel and Hewlett-Packard, the product manager manages the marketing efforts for

a close-knit family of products or brands

Strategies that might alter a product's characteristic such as its quality, performance, or appearance to increase the product's value to customers and increase sales are referred to as _____________.

product modification

Alka-Seltzer was made originally a hangover remedy that cured the headache and settle stomach. Today, you can purchase Original Alka-Seltzer, Extra strength Alka-Seltzer, Alka-Seltzer Morning Relief(for morning headaches and fatigue), and Alka-Seltzer Heartburn Relief. To extend the product's sales to new markets. the makers of Alka-Seltzer have used

product modifaction

A strategy for managing a product's life cycle that attempts to increase a product's use among existing customers, create new use situations, or find new customers is referred to as

market modification.

Market modification refers to

a strategy for managing a product's life cycle that attempts to increase a product's use among existing customers, create new use situations, or find new customers markets.

Mott's applesauce promotes using it as a low-fat alternative to cooking oil in baking. Mott's is

creating new use situations through a market modification strategy

Originally intended as a single pant for every situation, Dockers, the U.S. market leader in casual pants now promotes different looks for different usage situations work, weekend, dress, and golf. Dockers new strategy is designed to

create a new use situation

Originally intended as a single pant for every situation, Dockers, the U.S. market leader in casual pants now promotes different looks for different usage situations work, weekend, dress, and golf. Dockers new strategy is designed to

create a new use situation

Changing the place a product occupies in a consumer's mind relative to competitive products is referred to as

product repositioning

Sealy, the largest manufacturer of mattresses in the U.S. recently set out to redefine its place in the bedrooms of America. No longer was it going to be associated as simply a mattress company. Henceforth, the name Sealy was going to be known as the world's leading "sleep wellness provider." This is an example of _________.

repositioning

For many years, Kellogg's Frosted Flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. Tony the Tiger, a cartoon character, extolled Frosted Flakes, and advertisements depicted children enjoying the product in competitive situations. Recently, in response to declining sales of Frosted Flakes, the cereal-maker has adopted a new series of advertisements that show adults admitting they enjoy Frosted Flakes, too. Kellogg's is attempting to

reposition its product

New Coke was repositioned as a slightly sweeter, less filling soft drink because the Coca-Cola Company discovered that its 1984 marketshare in supermarkets was 2 percent behind Pepsi. This product repositioning strategy was

a reaction to a competitor's position

Old Spice antiperspirant was repositioned from a deodorant your grandfather might use to a strong, hip antiperspirant through commercials that showed the target market of 18 to 30 year old men advocating its use and through a money-back guarantee. P & G used this strategy with its Old Spice brand antiperspirant to

reach a new market

Adding value to the (or line) through additional features or higher-quality materials, is referred to as

trading up

The strategy of trading down involves

reducing the number of features, quality, or price of a product

A marketing decision in which an organization uses a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors is referred to as

branding

The term branding refers to

a marketing decision in which an organization uses a name, phrase, design, symbol, or combination of these to identify its products and distinguish them from those of competitors.

Any word, device (design, sound, shape, or color), or combination of these used to distinguish a seller's goods or services is referred to as a ___________.

brand name

The apple that appears on every Apple computer product is an example of a

brand name

Georgia-Pacific reduced the content of its Brawny paper towel six roll pack by 20 percent without lowering the price. Georgia-Pacific used

downsizing

Consumer advocates believe the practice of downsizing by consumer products firms has resulted in

a subtle, yet deceptive practice of taking advantage of consumers' buying habits by offering less product content in the same or larger package while maintaining or increasing the price.

One of the primary benefits of branding for consumers is that branding

makes decision making easier

Brand personality refers to

a set of human characteristics associated with a brand name.

The added value a brand name gives to a product beyond the functional benefits provided is referred to as _________.

brand equity

Brand name importance to a company has led to a concept called brand equity, the added value a brand name gives to a product beyond the functional benefits provided. This value has two distinct advantages: (1) it creates a competitive advantage and (2)

customers are often willing to pay a higher price

The four steps in the sequential building process of brand equity include positive brand awareness, establishing a brand's meaning in the minds of consumers, eliciting the proper consumer responses to a brand's identity and meaning, and to _________.

create a consumer-brand connection

When selecting a brand name it is recommended that the name suggests product features; be memorable; have no legal or regulatory restrictions; be distinctive and positive; fit the company or product image; be simple and emotional and

be memorable, distinctive, and positive.

A branding strategy in which a company uses one name for all its products in a product class is referred to as

multiproduct branding

Toro makes Toro snow blowers, Toro lawn mowers, Toro garden hoses, and Toro sprinkler systems. Toro is using a __________ branding strategy

family branding

When a company uses line extension it is

manufacturing a new product with the current brand name to enter a new market segment in its product class

Combining a corporate brand with a new brand is referred to as

subbranding

Tylenol successfully used _________ with the introduction of Tylenol→ Arthritis, Tylenol→ Sinus and Allergy, Tylenol→ Cold and Flu, and Tylenol→ Pain and Sleepleness

subbranding

Black & Decker uses a __________ strategy to reach the do-it-yourselfer market with the Black & Decker name and the construction professional market with the DeWalt name.

multibranding

Packaging refers to

any container in which a product is offered for sale and on which label information is communicated.

An integral part of the package that typically identifies the product or brand, who made it, where and when it was made, how it is to be used, and package contents and ingredients is referred to as a(n) _________.

label

The three main benefits provided by packaging are communication benefits, perceptual benefits, and _________.

functional benefits

Directions on how and when to use a product and the composition of a product that appear on packaging are examples of what kind of benefits?

communication benefits

Products such as Yoplait's Go-GURT→ portable low fat yogurt in a tube demonstrate the importance of _________ in packaging

● functional benefits

The belief that products originating from one country would be of better or worse quality than another is an example of packaging information that can be conveyed through

● perceptual benefits and communication benefits

The time a product can be stored before it spoils is referred to as

shelf life

When designing the product element of the marketing mix for services, marketing managers should give special attention to

● exclusivity, branding, and capacity management.

A patent gives a manufacturer of goods exclusive rights to its production for 17 years. A major difference between products and services is that

● services cannot be patented.

Certain movie theaters open on Tuesday mornings to allow parents with small children to bring them to the theater. They also advertised that the children did not need to stay seated or remain quiet since it is that this is a special day and time just for parents and their small children. Prior to developing this idea, the theaters had been closed on Tuesday mornings. In this situation, the theaters are using

● capacity management.

Setting prices during different times of the day or days of the week to reflect variations in demand is called

off-peak pricing

Historically, in services marketing little attention has been paid to

place (distribution).

Nonprofit services cannot control who sees a public service announcement or when the message is
given because

the timing and location of PSAs are under the control of the medium, not the organization.

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

Star this term

You can study starred terms together

NEW! Voice Recording

Create Set