Seneca- chapter 10

What are the characteristics of the Introduction Stage in the Product life cycle

• Frequent product modifications, High failure rate, limited distribution, Informing consumers, Intensive personal selling

• Competition intensifies, Profits rise, Promotion aggressive, Sales grow, Distribution becomes a major key to success

• Sales increase at a decreasing rate, Profit Fall, Market saturation, Modifications and product lines extended

• Some firms eliminate all nonessential marketing expenses and let sales decline as more and more customers discontinue purchasing the products

A company has learned that members of its target market are likely to collect more information and evaluate more brands than early adopters. They are cautious and thoughtful and do not try the product without asking someone else. The dominant characteristic is deliberateness. In terms of the diffusion process, who are these customers most likely to be?

• innovators

• laggards

• early majority

• late majority

An electronics store is currently seeing how Edmontonians react to a retail concept called Studio D, which is targeted to women. Edmonton is the only city in which Studio D stores were introduced. The store will monitor the reactions of customers to the store. What is the store using to determine consumer reaction to a new retailing concept?

• diffusion analysis

• . dual distribution

• test marketing

• laboratory testing

In its early years of operation, MGP Ingredients Inc. sold ethanol and animal feed. A steep drop in its sales led the company to focus on developing the first low-carb wheat proteins and starches. What would these low-carb products be an example of?

• a repositioning strategy

• a new product line

• an addition to an existing product line

• a discontinuous innovation

Oakley, the manufacturer of protective eyewear for sports enthusiasts, has recently

introduced Thump, UV sunglasses that allow the wearer to store and listen to 120 different songs. Which of the following product characteristics would likely exert the greatest

influence on the market success of these new glasses?

• comparability

• complexity

• tangibility

• competitive advantage

3 Sources of new products ideas

• customers, employees, and government

• Distributors, competitors, and employees

• foreign countries, employees, customers

• Vendors, R&D, and families

The statement on the toothpaste box that brushing twice a day with this paste will remove 90 percent of all tartar from the user’s teeth is an example of which of the following?

• an implied warranty

• a functional label

• a UPC label

• an express warranty

Global issues in Branding and Packaging

• UPC is Universal Product Codes or bar code

• Express warranty and implied warranty

• Persuasive labelling and Informational labelling

• One brand name everywhere, adaptations and modifications, different brand name in different markets

What are the functions of packaging

• Useful strategy when a combination of brand names enhances the prestige or perceived value of a product or when it benefits brand owners and users

• Two or more brand names on a product or its package, Ingredient branding, Cooperative branding, Complementary branding

• Containing and Protecting Products, Promoting Products, Facilitating Storage, Use, and Convenience, Facilitating Recycling and Reducing Environmental Damage

• Individual is different brand names for different products

  when the products vary greatly in use or performance

About one out of every two fans sold in North America is The Home Depot’s Hampton Bay brand. What type of brand is Hampton Bay?

• manufacturers’

• international

• family

• private