Marketing Unit 2 Exam

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.

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

Which technological tools help employees simultaneously access the same information about a business's products?

• Memory card

• Micro-portal

• Intranet

• Generator

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

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

• Nutritional values

• Recyclable materials

• Mandatory requirements

• Misleading information

Why might profits sometimes decline for the company that first introduced the product during the growth stage of a product’s life cycle?

• Because sales decline in the growth stage

• Because marketing strategies are adjusted

• Because competitors have entered the market

• Because production is more efficient

When a company uses its product wrapping to promote the preservation of an endangered animal species, it is engaging in which practice?

• Political lobbying

• Environmental labeling

• Cause packaging

• Provocative branding

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

Why is the quality level of a product an important product or service management decision?

• It identifies a product's brand.

• It reflects the image of the business.

• It protects the consumers.

• It refers to the way the product works.