Deck 21: Managing the Marketing Mix: Product, Price, Place and Promotion

Question 1

The image created by advertising is part of the total product offer of a product.

Answer 1

True

Question 2

The reputation of the manufacturer and the retail store surroundings are considered part of the value enhancers of a total product offer.

Answer 2

True

Question 3

While service providers offer product lines, they are unable to offer product mixes.

Answer 3

False

Question 4

In evaluating a total product offer, value enhancers such as service, guarantees, reputation of the seller, etc. are as important to customers as the basic product.

Question 5

To satisfy consumers managers must learn to listen better than they do now and to adapt constantly to changing market demands.

Question 6

Successful marketers attempt to think like consumers and evaluate the total product offer as a collection of impressions created by all parts of the value package.

Question 7

The several product lines that a company offers for sale make up that organization's product mix.

Question 8

The critical component of a total product offer is always a low price.

Question 9

When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

Question 10

The term product line describes the combination of product mixes offered by a manufacturer.

Question 11

A product line is a group of products that are physically similar or are intended for a similar market.

Question 12

Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

Question 13

Low prices can often help retailers create an attractive total product offer.

Question 14

Once an organization surveys the consumer's wants and needs, has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success.

Question 15

Fast-food organizations must constantly monitor all sources of information for new-product ideas.

Question 16

Product development is a key activity in any modern business, anywhere in the world.

Question 17

A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

Question 18

From a strategic marketing viewpoint, a total product offer includes all of the tangible attributes of a good or service, and excludes any intangible attributes.

Question 19

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

Question 20

Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small.

Question 21

The Spotlight on Small Business box showed us through the example of Randy Hetrick's TRX Suspension Trainer that in order to remain successful, sometimes expanding the product mix is essential.

Question 22

The exclusive goal companies expect of packaging is to protect the product from damage in transit.

Question 23

In recent years, the packaging of products has been given a greater role in product promotion.

Question 24

One function of effective packaging is to provide information regarding warranties, benefits, and uses of the good inside the package.

Question 25

Creative product differentiation can enable a small business to increase market share.

Question 26

A bank's product line may include safety deposit boxes, car loans, and traveler's checks.

Question 27

The concepts of product lines and product mixes apply to marketers of products and services.

Question 28

While the packaging of services has not yet captured the attention of businesses, technological improvements will likely create new opportunities.

Question 29

Changes in packaging can transform the product in the minds of consumers and open larger market opportunities.

Question 30

One function of effective packaging is to attract the attention of consumers.

Question 31

Car dealers realize that consumers focus exclusively on price and warranty.

Question 32

Whole grain breads, bagels, bread sticks, sandwiches, soup, and pastries are products that would be included in the product mix of El Trovodor's Bread Company.

Question 33

Packaging is an important part of the total product offer.

Question 34

More than any other component of a total product offer, technology has reduced the importance of packaging.

Question 35

The trend toward self-service retailers has increased the importance of packaging.

Question 36

Regardless of changes in packaging, the total product offer remains unchanged.

Question 37

One function of effective packaging is to protect the goods inside during handling and storage, as well as deter product tampering and theft.

Question 38

While the UPC improves efficiency at the retail checkout counter, it has increased problems in controlling inventory.

Question 39

While packaging innovations benefit the consumer, they have vastly increased the workload of retailers.

Question 40

As a result of increased advertising and well-trained salespeople, packaging is less important than in the past.

Question 41

According to the box Reaching Beyond Our Borders, brand names must hold great meaning or customers will not acknowledge them.

Question 42

Since Kazam Cleaners offers home and office cleaning services no different from competitors, the company cannot utilize a product differentiation strategy.

Question 43

At Isuzu's Appliance Store, all new products are offered with an extended service contract, as well as free delivery and installation. By offering these value enhancers, Isuzu's has added to their total product offer.

Question 44

A brand includes practically all means of identifying a product.

Question 45

Brand managers are responsible for the marketing of a product after it has been developed and a clear promotional message has been identified.

Question 46

A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design.

Question 47

Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft mayonnaise, and Marlboro Cigarettes, were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.

Question 48

Travelwell manufactures and sells luggage and briefcases. Their marketing research indicates that durability is the attribute that consumers most desire in their luggage and briefcases. Travelwell now emphasizes durability in all of their promotional efforts. This strategy is intended to build brand equity.

Question 49

Brand names can significantly impact consumer perceptions of a product.

Question 50

Brand managers have direct responsibility for all the elements of the marketing mix for a particular brand or product line.

Question 51

Dutch owns and operates a small pizzeria that competes with a variety of other restaurants offering pizza on their menus. His largest competitors are large nationally known organizations. The small size of Dutch's business prevents him from successfully utilizing a product differentiation strategy.

Question 52

The U.S. legal system does not offer trademark protection.

Question 53

Mystic Beverages, a producer of soft drinks, wants to differentiate its products from those of other soft drink providers. To implement this strategy successfully will require Mystic to create tangible differences in the physical product it offers.

Question 54

Federal legislation requires that the brand name of a product clearly identify the manufacturer of that product.

Question 55

Event sponsorship like the Tostito's Fiesta Bowl football game helps improve brand awareness.

Question 56

Firms use brand managers or brand teams to give them greater control over both new-product development and product promotion.

Question 57

Brand equity refers to those factors that people associate with a specific brand name, such as awareness, perceived quality, and loyalty.

Question 58

Healthy Pick designed a new type of packaging that significantly improves taste and texture of food when defrosted. Unfortunately, firms seldom find that improvements in packaging impact market share and profits.

Question 59

A traditional McDonald's and a McCafe are examples of the McDonald's Corporation product mix.

Question 60

The purpose of a brand name is to establish an image of generic goods or services.

Question 61

While the time in each stage may vary, all products progress through each stage of the product life cycle.

Question 62

As consumers evaluate a product, price plays a small role.

Question 63

While the product life cycle is a good theory, it's not important for marketers to recognize what life cycle stage a product is in.

Question 64

Sometimes a firm will lower prices below their costs in order to build a customer base.

Question 65

Some goods have a product life cycle that is completed in a shorter amount of time than other goods.

Question 66

Target costing adds a profit margin to estimated cost of production to determine the optimal price.

Question 67

Successful businesses develop a mix of price, product, place, and promotion that is consistently applied throughout a product's life cycle.

Question 68

Successful firms maintain consistency in their marketing mix strategies throughout the product life cycle.

Question 69

Knowledge of the product life cycle model can help firms develop marketing strategies and anticipate market changes.

Question 70

In order to achieve a social objective, firms use low prices to enable people with low incomes to buy their product.

Question 71

After several years as a brand manager for an established product, Pete has taken a job with a microbrewery. He is responsible for managing the marketing mix for a new product introduction. In his new job, Pete will find that while the products may be at different stages of the product life cycle, the marketing strategies will be essentially the same.

Question 72

Successful firms coordinate pricing objective strategies with decisions regarding product design, packaging, branding, distribution, and promotion.

Question 73

Profits peak during the maturity stage of the product life cycle.

Question 74

A long-run pricing objective of almost all firms is to optimize profit.

Question 75

Successful firms always try to maintain consistency in their short-run and long-run pricing objectives.

Question 76

While some products remain in the introductory stage of the product life cycle for years, other products may go through the entire cycle in a few months.

Question 77

The product life cycle presents a theoretical model describing what happens to sales and profits for a class of products over time.

Question 78

Consumer perceptions of product quality are affected by promotions and packaging, but not by the price of the product.

Question 79

Cost-based pricing adds a desired profit margin to the cost of producing a product.

Question 80

The four stages in the product life cycle are introduction, market, exchange, and disposal.