Ch12. Marketing mix: Product and price

ABC recently launched a new product into the highly competitive chocolate market. Initial sales were encouraging, but, six months after the launch, sales have fallen sharply and ABC has decided to remove the product from the market. What is the most likely reason for the failure of the new chocolate product?

• The market is highly competitive

• The price of the product was too high

• The product did not meet consumer expectations

• ABC did not use a test market

Which of the following is not a benefit of branding?

• Consumers recognise products more easily

• It can help to increase revenue

• It reduces the level of competition in the market

• Products can be priced higher than less well-known brands

Which of the following is sometimes referred to as the ‘fifth P’ of the marketing mix?

• Price

• Packaging

• Product

• Place

What is the main purpose of an extension strategy?

• To find new markets for the product

• To keep the product in the maturity stage

• To find a new use for the product

• To improve the appeal of the product to consumers

The ... a good will fall as a result of an increase in ...

• demand for / price

• value of / need

• demand for / need

• value of / price

Put the following stages of the product life cycle in order by dragging each to the correct space in the table

• 1 Decline

  2 Growth

  3 Maturity

  4 Introduction

• 1 Introduction

  2 Growth

  3 Maturity

  4 Decline

• 1 Introduction

  2 Maturity

  3 Growth

  4 Decline

• 1 Maturity

  2 Decline

  3 Introduction

  4 Growth

Setting the price for a new product below those of competitors to encourage consumers to buy it

• Penetration pricing

• Loss-leader pricing

• Skimming pricing

• Promotional pricing

• Competitive pricing

Setting prices well below those normally charged to attract customers into stores

• Penetration pricing

• Loss-leader pricing

• Skimming pricing

• Promotional pricing

• Competitive pricing

Setting a high price for a unique or very different product

• Penetration pricing

• Loss-leader pricing

• Skimming pricing

• Promotional pricing

• Competitive pricing

Setting the price for a product below competitors’ prices for a limited period of time to encourage customers to buy it

• Cost-plus pricing

• Loss-leader pricing

• Skimming pricing

• Promotional pricing

• Competitive pricing