Deck 14: Developing and Marketing Products

Question 1

A brand name can function as a legal property.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Noise refers to anything that disrupts the audience's ability to receive and interpret a promotional message.

Answer 3

True

Question 4

A push strategy is the most efficient promotional strategy when distribution channels are lengthy.

Question 5

The marketing communication process involves encoding and decoding of the promotional message.

Question 6

Emerging markets typically have fewer forms of mass media for use in implementing a pull strategy.

Question 7

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

Question 8

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

Question 9

By ignoring important cultural nuances,companies can inadvertently decrease the potential for noise that can cloud the audience's understanding of their promotional message.

Question 10

The value customers obtain from a product is heavily influenced by the image of the country in which the product is manufactured.

Question 11

All company and product brand names are made up of morphemes.

Question 12

In marketing,distribution is the process of sending promotional messages about products to target markets.

Question 13

A common example of a push strategy is the creation of consumer demand through direct marketing techniques.

Question 14

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

Question 15

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

Question 16

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

Question 17

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

Question 18

Developed nations normally have the most active counterfeiting markets.

Question 19

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

Question 20

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

Question 21

Antidumping tariffs punish producers in the offending nation by increasing the price of their products to a fairer level.

Question 22

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

A)black market
B)niche market
C)two-sided market
D)vertical market

Question 23

Service providers do not need distribution channels because they market intangible goods.

Question 24

Governments in developing countries impose fewer consumer protection laws in order to ________.

A)hold down production costs and consumer prices
B)enable companies to focus on profit-making exclusively
C)decrease the flow of foreign direct investment into the country
D)decrease the complexity of the legal procedures for foreign direct investment

Question 25

Which of the following promotional strategies is being used by a company that hires a fleet of trucks to drive through village squares and hand out free trial packages to potential end users?

A)push strategy
B)pull strategy
C)retrenchment strategy
D)differentiation strategy

Question 26

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

A)pull strategy
B)push strategy
C)retrenchment strategy
D)stability strategy

Question 27

The more intermediaries there are in a distribution channel,the less costly the channel becomes.

Question 28

Which of the following is a promotional strategy designed to pressure channel members to carry a product and promote it to final users?

A)differentiation strategy
B)retrenchment strategy
C)push strategy
D)pull strategy

Question 29

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

Question 30

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

Question 31

________ is a major component of a promotion mix.

A)Distribution
B)Market segmentation
C)Pricing
D)Public relations

Question 32

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

Question 33

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

A)Giffen goods
B)Counterfeit goods
C)Inferior goods
D)Intangible goods

Question 34

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

A)aesthetics
B)morphemes
C)hybrid words
D)propositions

Question 35

The term ________ refers to a company's efforts to reach distribution channels and target customers through communications such as personal selling,advertising,public relations,and direct marketing.

A)social marketing
B)viral marketing
C)promotion mix
D)positioning

Question 36

As a promotional strategy,manufacturers of products that are commonly sold through department and grocery stores often use ________.

A)a push strategy
B)a pull strategy
C)retrenchment strategy
D)stability strategy

Question 37

Which of the following is a push strategy that companies use to promote their products?

A)mass media advertising
B)direct marketing techniques
C)free trial packages
D)retail product stocking

Question 38

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

Question 39

Which of the following is among the most commonly counterfeited products?

A)aircraft parts
B)watches
C)surgical equipment
D)medicines

Question 40

Which of the following is true of counterfeit goods?

A)Developed nations normally have the most active counterfeiting markets.
B)Counterfeiting is more common among less visible local brands than global brands.
C)Most counterfeit products are imitations of products that normally enjoy legal protection.
D)Engineered industrial components and medicines are among the few categories of products that cannot be counterfeited.

Question 41

A ________ strategy can be implemented successfully for communicating promotional messages only if a sufficiently large and profitable market segment exists.

A)dual extension method
B)product extension/communications adaptation method
C)product adaptation/communications extension method
D)dual adaptation method

Question 42

________ refers to anything that disrupts the audience's ability to receive and interpret a promotional message.

A)Noise
B)Interpolation
C)Feedback
D)Resonance

Question 43

Once an audience receives a message,they interpret the meaning of the message by ________ it.

A)preprocessing
B)decoding
C)parsing
D)compiling

Question 44

Companies along a distribution channel that work together in delivering products to customers are called ________.

A)subsidiaries
B)intermediaries
C)value chains
D)value networks

Question 45

Which of the following communication strategies expands the same product into new target markets but alters its marketing promotion?

A)product/communications extension
B)product extension/communications adaptation
C)product adaptation/communications extension
D)product/communications adaptation

Question 46

Which of the following refers to planning,implementing,and controlling the physical flow of a product from its point of origin to its point of consumption?

A)customization
B)distribution
C)communication
D)promotion

Question 47

The physical path a product follows on its way to customers is called a(n)________.

A)distribution channel
B)demand chain
C)critical path
D)external value network

Question 48

Which of the following occurs when an idea to be communicated is translated into images,words,and symbols?

A)compiling
B)encoding
C)parsing
D)processing

Question 49

The process of sending messages about products to target markets is called ________.

A)customer relations
B)customer service
C)market segmentation
D)marketing communication

Question 50

Which of the following reflects the correct sequence of the marketing communication process?

A)promotional message;encoding;decoding;feedback
B)encoding;promotional message;decoding;feedback
C)promotional message;decoding;feedback;encoding
D)encoding;decoding;promotional message;feedback

Question 51

Which of the following circumstances would best require a pull strategy to be implemented for product promotion?

A)channel members wield relatively lesser power compared to that of producers
B)buyers display a great deal of brand loyalty to a particular product
C)distribution channels are short
D)buyers need to be informed about the features of a product before purchase

Question 52

________ is often necessary as a communication strategy when many important differences exist between the home and target markets.

A)Product invention
B)Product adaptation
C)Dual adaptation
D)Dual extension

Question 53

Which of the following communication strategies adapts both the product and its marketing communication to suit the target market?

A)product/communications extension
B)product extension/communications adaptation
C)product adaptation/communications extension
D)product/communications adaptation

Question 54

A ________ is used for a product's promotion when there are many levels of intermediaries in its distribution channel.

A)push strategy
B)pull strategy
C)retrenchment strategy
D)stability strategy

Question 55

A company that makes its marketing program elements uniform,targeting an entire region with similar products,is demonstrating ________.

A)customization
B)segmentation
C)standardization
D)differentiation

Question 56

Which of the following communication strategies uses the same home-market product and marketing promotion in target markets?

A)product/communications extension
B)product extension/communications adaptation
C)product adaptation/communications extension
D)product/communications adaptation

Question 57

Which of the following circumstances would best require a push strategy to be implemented for product promotion?

A)channel members wield a great deal of power relative to that of producers
B)distribution channels are lengthy
C)buyers display a great deal of brand loyalty to particular product
D)products in question are industrial goods

Question 58

A ________ strategy is best suited for the promotion of industrial products because potential buyers usually need to be informed about a product's special features before purchase.

A)push
B)pull
C)stability
D)differentiation

Question 59

Which of the following statements is true about international promotions?

A)Most companies standardize all aspects of their international promotions to cut costs.
B)Firms that standardize advertising often control campaigns from the home office.
C)Companies that adapt their advertising to different markets project a consistent brand image.
D)Companies discourage blending product and promotional strategies in a communication process.

Question 60

Which of the following communication strategies adapts a product to the requirements of the international market while retaining its original marketing communication?

A)product/communications extension
B)product extension/communications adaptation
C)product adaptation/communications extension
D)product/communications adaptation

Question 61

A distribution channel in which a producer grants the right to sell its product to many resellers is referred to as a(n)________.

A)one-level channel
B)zero-level channel
C)exclusive channel
D)intensive channel

Question 62

A(n)________ channel places a single intermediary between the producer and the buyer.

A)intensive
B)exclusive
C)one-level
D)two-level

Question 63

Which of the following products has a low value-density ratio?

A)semiconductors
B)emerald
C)crude oil
D)premium perfumes

Question 64

A pricing policy in which a product has a different selling price in export markets than it has in the home market is called ________.

A)dual pricing
B)cost-plus pricing
C)penetration pricing
D)premium pricing

Question 65

Which of the following is true of the value densities of products?

A)The cost of transporting goods with high value-density ratios is high relative to their value.
B)Products with high value-density ratios are integrated into the manufacturing process at points close to their original locations.
C)Most commodities,including cement,iron ore,and crude oil,have high value-density ratios.
D)The lower a product's value density,the more localized the distribution system.

Question 66

Which of the following is implied by a product with a low value density?

A)the distribution system is more localized
B)the product is more valuable
C)the cost of shipping the product is negligible
D)the product is processed in areas away from their original locations

Question 67

Which of the following occurs when the price of a good is lower in export markets than it is in the domestic market?

A)skimming
B)dumping
C)transfer pricing
D)price escalation

Question 68

A(n)________ channel does not create strong barriers to channel entry for other producers,nor does it provide much control over reseller decisions such as what competing brands to sell.

A)one-level
B)zero-level
C)exclusive
D)intensive

Question 69

Which of the following is also known as direct marketing?

A)an intensive channel
B)an exclusive channel
C)a zero-level channel
D)a two-level channel

Question 70

Which of the following refers to the price charged for products sold between a company's divisions or subsidiaries?

A)dual pricing
B)transfer price
C)price skimming
D)arm's length price

Question 71

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

A)price skimming
B)price escalation
C)price dispersion
D)price fixing

Question 72

The value of a product relative to its weight and volume is called its ________.

A)face value
B)value investing
C)real value
D)value density

Question 73

Upper or lower limits placed on the prices of products sold within a country are known as ________.

A)price controls
B)transfer prices
C)price escalators
D)arm's length prices

Question 74

A(n)________ channel gives producers a good deal of control over the sale of their product by channel members such as wholesalers and retailers.

A)exclusive
B)intensive
C)two-level
D)selective

Question 75

The free-market price that unrelated parties charge one another for a specific product is called a(n)________.

A)worldwide price
B)transfer price
C)dual price
D)arm's length price

Question 76

A pricing policy in which one selling price is established for all international markets is called ________.

A)dual pricing
B)value-based pricing
C)worldwide pricing
D)target pricing

Question 77

________ refers to the number of intermediaries between producer and buyer.

A)Critical path
B)Channel length
C)Frequency
D)Value density

Question 78

A(n)________ channel provides buyers with location convenience because of the large number of outlets through which a product is sold.

A)intensive
B)exclusive
C)one-level
D)zero-level

Question 79

A(n)________ channel creates a barrier that makes it difficult or impossible for outsiders to penetrate.

A)exclusive
B)intensive
C)selective
D)two-level

Question 80

A distribution channel in which a manufacturer grants the right to sell its products to only one or a limited number of resellers is called a(n)________.

A)intensive channel
B)exclusive channel
C)zero-level channel
D)two-level channel