Question 1

Product deletion

Accepted Answer

Product deletion may be opposed by management as it can have implications for the organization's revenue and market share. It is not always an easy task and can involve a significant amount of consideration and analysis.

Question 2

TerraCycle is a company that takes waste and "upcycles" it into new products. Currently, TerraCycle markets a bicycle rack to schools, parks, and cities, that is made of recycled plastic. This rack does not scratch or damage the bikes as concrete and steel racks can, and is eco-friendly since it is made of waste material. Terracycle is differentiating its product based on

Accepted Answer

TerraCycle is differentiating its product based on product features such as not scratching or damaging bikes and its eco-friendliness.

Question 3

Dropping an unprofitable product immediately is the best strategy when

Accepted Answer

When losses are too great to prolong the product's life, it is best to drop the unprofitable product immediately to minimize further losses. Continuing to invest in a product that is not generating profits can harm the overall financial health of the company.

Question 4

If Megan Roberts were given total marketing responsibility over Diet Cherry 7Up, she would hold the position of ____ manager.

Accepted Answer

The position mentioned in the question is responsible for the marketing of a specific brand, which falls under brand management. Therefore, the best choice is E, brand manager.

Question 5

Which of the following is the best definition of product features?

Accepted Answer

Product features are the specific design characteristics that allow a product to perform certain tasks. They are distinct from benefits, which are the advantages or solutions a product offers to a customer.

Question 6

Product deletion can best be described as the process of deleting a product from the product mix when it

Accepted Answer

Product deletion occurs when a product no longer satisfies a sufficient number of customers. This may be due to changes in consumer preferences, increased competition, or other market factors. It is not solely based on perceptions of top management, negative reviews, production costs, or promotional efforts, although these factors may contribute to the decision to delete a product.

Question 7

If Splenda decides its "Splenda with Vitamins" is not reaching profit expectations and simply allows the product to decline without any change in marketing strategy, it is using a(n) ____ deletion strategy.

Accepted Answer

A phase-out deletion strategy involves gradually removing a product from the market, reducing marketing support and production, rather than an immediate or sudden drop. This allows the company to minimize the impact on its reputation and relationships with customers, distributors, and retailers.

Question 8

The product deletion process is similar to the ____ step of the new-product development process because both involve deciding whether the product should be in the product mix based on an assessment of sales, costs, and profits.

Accepted Answer

The product deletion process involves assessing the sales, costs, and profits of a product to determine whether it should remain in the product mix. This is similar to the business analysis step of the new-product development process, where the potential profitability of the product idea is evaluated before moving forward with development. The other options listed (idea generation, screening, product development, and test marketing) are not as relevant to the product deletion process.

Question 9

Josh Bowman, of U.S. Hospital Supply Corporation, has responsibility for managing the marketing activities for products aimed at nursing homes and extended care facilities. Josh's job is that of a(n)

Accepted Answer

The answer of Josh Bowman, of U.S. Hospital Supply Corporation,...

Question 10

A suggested approach to deleting products, in which each product is evaluated periodically to determine its impact on the overall effectiveness of the firm's product mix, is called a(n)

Accepted Answer

This approach is called a systematic review, as it involves periodically evaluating each product to determine its impact on the overall effectiveness of the firm's product mix. This helps ensure that the firm's product offerings remain relevant and profitable.

Question 11

A ____ is responsible for a product, product line, or several distinct products in an interrelated group within an organization.

Accepted Answer

A product manager is responsible for managing and developing a product, product line or several products by conducting market research, creating product strategy, determining product features, and collaborating with cross-functional teams to ensure successful product launch and growth.

Question 12

The Home Depot differentiates its product offerings from its competition with stores like Sam's, by offering delivery and installation, financing arrangements, and repairs. The Home Depot is differentiating through

Accepted Answer

The Home Depot is differentiating itself through its customer services, such as delivery and installation, financing arrangements, and repairs. This sets it apart from competitors like Sam's.

Question 13

If Pedigree offered you a position in which you would have total marketing responsibility for all of its canned dog food, this position would probably hold the title of ____ manager.

Accepted Answer

The position being offered is specifically for managing the marketing of Pedigree's canned dog food, which is a specific product. Therefore, the best title for this position is product manager.

Question 14

Luis Mayo is an accountant at Ralston Purina. However, he is currently working with a group to determine the feasibility of a new brand of hot breakfast cereal. After the product is launched, Luis will return to the accounting department. His present position can be described as a

Accepted Answer

Luis is working temporarily with a group to assess a new product's feasibility before returning to his regular role, which aligns with the responsibilities of a member of a venture team. Venture teams are formed to work on new projects or innovations and are often disbanded once the project is completed or launched.

Question 15

The members of a venture team come from

Accepted Answer

The members of a venture team come from different functional areas of an organization, bringing together a diverse set of skills and perspectives to achieve the common goal of launching a new product or service. This allows for a well-rounded team with a broad range of expertise to tackle the various aspects of the venture, including marketing, finance, research and development, production, and more.

Question 16

Marketers of a particular brand of ice cream have decided to delete their line of ice cream bars. They will do so by letting the product decline and not change the current marketing strategy. This method of deletion is called

Accepted Answer

Phase-out is the gradual elimination of a product by allowing it to decline without a change in the marketing strategy. This method is usually preferred when the brand wants to avoid negative perception caused by an immediate drop in a product line. In this case, the marketers have decided to phase-out their line of ice cream bars.

Question 17

Seth recently purchased a new Brunswick Billiards table for his recreation room. The next day after delivery, Seth noticed a problem with the way one of the pockets was strung. Since it was a weekend, he didn't expect to have it repaired. However, when he called the store to leave a message, someone answered the phone. She gave Seth a number where he could call a repair representative who would come straight to Seth's house within an hour. Brunswick Billards is most likely differentiating itself through

Accepted Answer

Brunswick Billiards is differentiating itself through its product support services, as demonstrated by the prompt and helpful response to Seth's problem with the pocket of his new billiards table.

Question 18

To differentiate their products, companies sometimes emphasize the product support services that they offer. This is especially true when

Accepted Answer

The answer of To differentiate their products, companies sometimes emphasize...

Question 19

A brand manager in a multiproduct firm would be responsible for

Accepted Answer

A brand manager in a multiproduct firm would be responsible for the performance of a specific brand, not all brands within a product line or all products made by the firm. Their focus would be on developing strategies to build brand equity, increase brand awareness, and improve brand loyalty for their specific brand. Therefore, choice A is the best choice.

Question 20

A run-out policy of product deletion

Accepted Answer

A run-out policy of product deletion exploits any strengths left in the product before eventually phasing it out. It involves selling off remaining inventory and satisfying any existing demand without changing the product strategy, which allows the company to maximize profit and minimize losses. Option A is incorrect because it implies a passive approach, whereas run-out policy is an active strategy. Option B is incorrect because an immediate-drop decision would involve abruptly stopping production and sales, which is not in line with run-out policy. Option D is incorrect because it suggests raising the price continually, which would likely lead to a decline in demand and reduce the chances of successfully running out the product. Option E is also incorrect because it describes a situation where production cannot keep pace with demand, which is not relevant to the concept of run-out policy.

Quiz 11: Developing and Managing Goods and Services