Deck 14: Developing and Marketing Products

Question 1

The four components of marketing strategy include product, promotion, profit, and pricing polices.

Answer 1

False

Question 2

All company and product brand names are made up of morphemes, which are semantic elements or language building blocks.

Answer 2

True

Question 3

The value customers obtain from a product is heavily influenced by the image of the country in which it is designed, manufactured, or assembled.

Answer 3

True

Question 4

Counterfeit goods damage the image of a brand when the counterfeits are of superior quality.

Question 5

Product names seldom offend people in international markets, but brand names can be highly offensive if they are not carefully researched and selected.

Question 6

Product standardization is more likely when nations share the same level of economic development.

Question 7

Culture is causing people's needs and preferences to converge throughout the world.

Question 8

A brand name can function as legal property that owners can protect from trespass by competitors.

Question 9

A brand name is central to a product's personality and the image it presents to buyers.

Question 10

Because national image is a fixed variable that does not change, companies should be careful in which country they choose to manufacture.

Question 11

A brand name is the name of one or more items in a product line that identifies the source or character of the items.

Question 12

A strong brand can become a company's most valuable asset and primary source of competitive advantage.

Question 13

Counterfeit goods are imitation products passed off as legitimate trademarks, patents, or copyrighted works.

Question 14

Cultural differences demand that all companies modify their products to local cultures.

Question 15

Lower levels of education and less buying experience mean consumers in developing countries are less likely to need protection.

Question 16

A country's image can be positive for some products but negative for others.

Question 17

Counterfeiting is common among highly visible brand-name consumer goods.

Question 18

Companies must often adapt their products to satisfy laws and regulations in a target market.

Question 19

Some believe that because the world is becoming standardized and homogeneous, companies should market the same products in the same way in all countries.

Question 20

National image is an important element of product policy because it affects buyers' perceptions of quality and reliability.

Question 21

Companies have benefited from the emergence of the Euro-consumer because advertising within the European Union can now be standardized.

Question 22

A push strategy is a promotional strategy designed to pressure channel members to carry a product and promote it to final users.

Question 23

Because companies are undertaking new product development at an increasingly rapid pace, product life cycles are becoming shorter.

Question 24

The rapid pace of technological innovation today extends the life cycles of products.

Question 25

Implementing a push strategy is most appropriate when channel members wield a great deal of power relative to that of producers.

Question 26

Developing and emerging markets typically have fewer available forms of mass media for use in implementing a pull strategy.

Question 27

Creating consumer demand through direct marketing techniques is a common example of a push strategy.

Question 28

When distribution channels are lengthy, a push strategy is typically most successful.

Question 29

A push strategy tends to be appropriate for expensive consumer goods characterized by buyers who are brand loyal.

Question 30

Because counterfeit goods are typically similar in quality to the real brand-name product, consumers experience little difference between the two types of products.

Question 31

Companies traditionally standardize all aspects of their international promotions.

Question 32

Firms that standardize their advertising usually control campaigns from the home office.

Question 33

A promotional strategy designed to create buyer demand that will encourage channel members to stock a company's product is called a push strategy.

Question 34

Traditionally, companies managed to extend a product's life by introducing it into different markets consecutively.

Question 35

Creating consumer demand through mass-media advertising is the most common example of a push strategy.

Question 36

The black market is a marketplace of underground transactions that typically appears because a product is either illegal or tightly regulated.

Question 37

A pull strategy is most appropriate when buyers display a great deal of brand loyalty toward one particular brand name.

Question 38

A company might change its marketing communications because of a nation's laws on the promotion of products.

Question 39

Efforts by a company to reach distribution channels and target customers through communications such as personal selling, advertising, public relations, and direct marketing are called its promotion mix.

Question 40

Distribution is the process of sending promotional messages about products to target markets.

Question 41

A company following a differentiation strategy usually can charge a premium price for its products because buyers value the product's uniqueness.

Question 42

The dual extension method extends the same home-market product and marketing promotion into target markets.

Question 43

Anything that disrupts the audience's ability to receive and interpret the promotional message is called encoding.

Question 44

Marketing communication is typically a one-way process from the source to the audience.

Question 45

Language barriers between the company and potential buyers help eliminate noise.

Question 46

Under the product extension and communication adaptation method, a company extends the same home-market product and marketing promotion into the target market.

Question 47

When a producer wants its product to be made available through as many distribution outlets as possible, it prefers to use an intensive channel.

Question 48

Low economic development can force communications to be adapted to local conditions.

Question 49

Language barriers between the company and potential buyers can create noise if a company's promotional message is incorrectly translated into the local language.

Question 50

When a product has a higher selling price in the target market than it does in the home market or in the country where production occurs, it is called price escalation.

Question 51

Generally, the more intermediaries in a channel, the less costly it becomes because of the enhanced efficiency of distribution.

Question 52

Media commonly used by companies to communicate promotional messages include radio, television, newspapers, billboards and direct mailings.

Question 53

Under the dual adaptation method, a company adapts its product to local requirements while retaining the product's original marketing communication.

Question 54

The physical path a product follows on its way to customers is called a distribution channel.

Question 55

The lower a product's value density, the more localized the distribution system.

Question 56

A pricing policy in which different selling prices are established for different markets is called worldwide pricing.

Question 57

Given the intangible products of service providers, distribution channels are not needed for these companies.

Question 58

The dual extension method adapts both the product and its marketing communication to suit the target market.

Question 59

Lower-limit price controls are designed to provide price stability in an inflationary economy.

Question 60

An arm's length price is the price that is charged for products sold among a company's divisions or subsidiaries.

Question 61

Brand names ________.

A) are central to a product's personality and the image the product presents to buyers
B) inform buyers about a product's source
C) protect customers and producers from copycat products
D) all of the above

Question 62

Which of the following affects the preferences of consumers?

A) Cultural environments
B) Political environments
C) Legal environments
D) All of the above

Question 63

Which of these is the name of one or more items in a product line that identifies the source or character of the items?

A) Product name
B) National image name
C) Brand name
D) International name

Question 64

Lower levels of education and less buying experience mean that consumers in developing countries are ________.

A) more likely to need protection
B) less likely to need ethical products
C) less likely to need protection
D) more likely to buy large quantity of products

Question 65

Some argue that because the world is becoming standardized and ________, companies should market the same products the same way in all countries.

A) richer
B) heterogeneous
C) homogeneous
D) poorer

Question 66

All company and product brand names are made up of semantic elements or language building blocks called ________.

A) regulatory language
B) morphemes
C) life cycle stages
D) mocha tea

Question 67

Which of the following is known for its high level of counterfeit products?

A) China
B) India
C) Russia
D) All of the above

Question 68

Efforts by a company to reach distribution channels and target customers through communications such as personal selling, advertising, public relations, and direct marketing are called its ________.

A) marketing objectives
B) distribution policies
C) promotion mix
D) value density

Question 69

Which of these is a marketplace of underground transactions that typically appears because a product is either illegal or tightly regulated?

A) Black market
B) Farmer's market
C) Flea market
D) Red market

Question 70

A promotion mix is composed of all of the following EXCEPT ________.

A) personal selling
B) advertising
C) public relations
D) indirect exporting

Question 71

________ are imitation products passed off as legitimate trademarks, patents, or copyrighted works.

A) Brand name goods
B) Counterfeit goods
C) Foreign goods
D) Intangible goods

Question 72

Which of the following is NOT true of national image?

A) National image tends to be static over the long term.
B) National image can be positive for some products but negative for others.
C) National image influences the value that customers receive from a product.
D) National image affects buyers' perceptions of quality and reliability.

Question 73

Selling Altoids in the U.S. as a breath mint is an example of a company ________.

A) identifying a different cultural need for its product
B) adapting its product to a new market
C) promoting its brand name
D) expanding its product line

Question 74

A(n) ________ brand image is increasingly important as more consumers and businesspeople travel internationally.

A) consistent global
B) segmented national
C) adaptive
D) strategic

Question 75

Globalization is ________.

A) transforming the way in which some, but not all, products are marketed internationally
B) causing increased heterogeneity among markets
C) forcing physical changes to products to suit the tastes of target markets
D) all of the above

Question 76

________ seldom offend people in international markets, but ________ can be highly offensive.

A) Product names; brand names
B) National image; brand names
C) Brand names; product names
D) Product names; national image

Question 77

Dumping is when a good's price is lower in export markets than it is in the domestic market.

Question 78

Counterfeiting is common among all of the following products EXCEPT ________.

A) perfume
B) books
C) clothing
D) watches

Question 79

Some argue that ________ is causing people's needs and preferences to converge worldwide.

A) inflation
B) culture
C) technology
D) politics

Question 80

When Procter & Gamble hired a fleet of trucks to drive through village squares and hand out free trial packages to potential end users it employed a ________.

A) push strategy
B) pull strategy
C) distribution strategy
D) channel strategy