Marketing 3.01-3.07

Why should a business continue to monitor an established product?

• To determine the acceptance of a product by a limited market

• To make sure that a marketing plan is firmly in place

• To make changes in order to extend a product's life cycle

• To evaluate how a product might fit the firm's product mix

Why does a company need to know the life-cycle stages of its products?

• To prevent imitators from entering the market

• To find new uses for the product

• To predict the length of the life cycle

• To adapt its marketing strategies

A business is behaving unethically if its product's label contains what component?

• Nutritional values

• Recyclable materials

• Mandatory requirements

• Misleading information

Which is a way that a business can extend the life cycle of an established product?

• By promoting the product to current users

• By finding new uses for the product

• By restricting distribution

• By attracting consumers who are innovators

What is a technologically advanced method that allows businesses to produce products that are specialized for a few customers?

• Intermittent conversion

• Automatic production

• Computerized robotics

• Mass customization

Five years after a new product has been introduced, sales begin to level off because customers are purchasing the competitor’s brand. Which strategy would be most appropriate to use in this situation?

• Take the product off the market.

• Do nothing; fluctuations in sales are common.

• Modify the product to renew customer interest.

• Triple the advertising budget for the product.

Which activity is addressed in the product- or service-management function?

• Setting discounts to clear products from inventory

• Determining where products will be offered for sale

• Focusing promotional activities on a new product’s release

• Eliminating products that are slow sellers

Lakeview Manufacturing produces canned tuna fish for consumers and pets. After the company decided to expand its market to three additional states, it discovered that the pet products were labeled incorrectly. They had been packaged and distributed as consumer products. To correct this problem, which action should the company take?

• Product liability

• Product recall

• Guarantee

• Warranty

Harrison Stroller Company manufactures baby strollers. The business launched a new stroller line in hopes of increasing its market share. The new model featured neon, plastic, musical toys on the front bar of the stroller. By the middle of the first year, there were 50 reports of infant injuries. Which legal action will Harrison Stroller Company have to face?

• Consumer protection

• Product deletion

• Product liability

• Consumer Product Safety Act

A major food service company was trying to come up with a new idea for a candy item. The marketing manager brought her team together for an ideation session. Mandy laid all the company’s candy items on a table, in a row, and started matching up candies that did not typically belong together. By doing this activity, the team came up with a mixture of three candy items that, combined, made a new candy item addition to their product line. This method of lateral thinking is called:

• Synectics

• Mind mapping

• Morphological analysis

• Attribute listing