Deck 11: Managing Products and Brands

Question 1

Gatorade Xtremo with its exotic blend of flavours and bilingual label was introduced in 2002 having been developed for the:

A)Asian market
B)Middle Eastern market
C)African market
D)Latino market

Answer 1

D

Question 2

A computer manufacturer runs a print ad that has a 'them versus us' feel.They place their two products side-by-side,while highlighting the advantages of theirs versus the competition.The purpose of this is to drive ________ demand for their product.

A)selective
B)primary
C)derived
D)generic

Answer 2

A

Question 3

For years when most consumers thought of cranberries,they thought of the Ocean Spray brand.Then Northland cranberry juice came on the market claiming that it was superior to the Ocean Spray brand.Northland was creating _____ demand for its cranberry products.

A)secondary
B)primary
C)derived
D)selective

Answer 3

D

Question 4

Scientists have discovered a new medical treatment but before they can market it,physicians and patients must be aware of its existence.In other words,its manufacturer must create _____ demand.

A)selective
B)primary
C)derived
D)generic

Question 5

Brand development has spurred Gatorade's success.The Gatorade Performance Series features each of the following EXCEPT:

A)Gatorade Energy Bar
B)Gatorade Energy Drink
C)Gatorade Nutritional Shake
D)Gatorade Energy Popsicles

Question 6

Gatorade commands about ________ of the sports beverage market in North America.

A)52 percent
B)62 percent
C)72 percent
D)82 percent

Question 7

During the introduction stage of the product life cycle,the place element of the marketing mix is highly involved with:

A)reducing inventory costs.
B)gaining distribution outlets.
C)guaranteeing there is adequate demand if a skimming pricing strategy is used.
D)building storage warehouses and distribution centers.

Question 8

Today,Gatorade is sold in more than __________ countries in North America,Europe,Latin America,the Middle East,Africa,Asia,and Australia.

A)50
B)75
C)90
D)110

Question 9

Although the Chevy Volt is an electric car,during Chevy's advertisements they stress the importance of "Going Electric" and "Going Green",without explicitly advertising their new vehicle.The purpose of these advertisements is to stimulate ____________ demand for an entire product class,rather than for a specific brand.

A)selective
B)primary
C)derived
D)generic

Question 10

Promotional expenditures at the introduction stage of the product life cycle are spent on:

A)contests and sweepstakes.
B)creating selective demand.
C)creating primary demand.
D)personal endorsements.

Question 11

As competitors introduce their own products,and the product progresses along its life cycle,company attention is focused on creating _____ demand,or demand for a specific brand.

A)selective
B)primary
C)derived
D)generic

Question 12

Despite have multiple products and product lines,Gatorade's success has been largely driven by:

A)excellent brand management
B)growing athlete base
C)business efficiencies
D)innovation

Question 13

Lack of profit in the introductory stage of the product life cycle is very often the result of:

A)insufficient allocation of resources to the marketing mix.
B)poor selection of distribution channels.
C)high taxes.
D)large investment costs in product development.

Question 14

A product in the introduction stage of the product life cycle should have which of the following marketing objectives?

A)to gain awareness and stimulate trial
B)to stress differentiation
C)to maintain brand loyalty
D)to gain as much distribution as possible

Question 15

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades.The marketing for the show was intent on making television viewers aware of its existence and excited enough about the show that we would watch the first episode.Which of the following statements about televised game shows is true?

A)Who Wants to Be a Millionaire was in the introduction stage of the product life cycle of televised nighttime game shows when it premiered.
B)Because television has been around for many years, all programs fall naturally into the maturity stage.
C)Televised programs are either in the introduction stage or the growth stage and are discontinued when they move into the maturity stage.
D)All televised programming uses a three-stage product life cycle-growth, maturity, and decline.

Question 16

The popular "Got Milk" advertising campaign was sponsored by the National Milk Board to encourage more people to drink milk.This ad campaign stimulated _____ demand.

A)selective
B)primary
C)derived
D)generic

Question 17

Gillette spent $35 million in advertising to introduce the Sensor razor to consumers.The main reason such expenditures are often made is to stimulate or increase desire for the product class,rather than for a specific brand,when there are no competitors with the same product,is because of:

A)additional marketing research that is needed
B)innovative sampling methods
C)growing primary demand
D)initial data gathering

Question 18

A new start-up recently finished prototyping their virtual reality glasses,and they are now available at select retailers across the country.What stage of the product life cycle are these glasses in?

A)growth
B)commercialization
C)launch
D)introduction

Question 19

One of the newest types of television shows is the category called reality shows.According to the product life cycle,what was the objective of the marketers of these reality shows when they were in the introduction stage of the product life cycle?

A)to gain awareness and stimulate trial
B)to stress differentiation
C)to maintain brand loyalty
D)to gain as much distribution as possible

Question 20

A new cleaning company offers a free trial to all consumers who are willing to try their new counter-top cleaning solution.If customers do not like the product,they will get their purchase price refunded.This marketing activity is likely found in which stage of the product life cycle?

A)introduction
B)growth
C)maturity
D)decline

Question 21

UPEK Provides Biometric Fingerprint Security for Personal Computers to various PC manufacturers.UPEK is experiencing slow growth and it is just recovering its research and development costs from some PC manufacturers that are selling to consumers.The biometric fingerprint industry would be in the _______________ stage of the product life cycle.

A)growth stage
B)decline stage
C)commercialization stage
D)introduction stage

Question 22

The music industry has changed dramatically over the years.In the 1970s,consumers purchased 8-track tapes.In the 1980s,cassette tape players caused the decline of 8-track tape players.In fact,today consumers would experience difficulty in purchasing a new artist on 8-track tape.Now in the 2000s,MP3 players have become very popular and are being purchased by music lovers of every age and background.As sales of MP3 players continue to grow at an increasing rate,sales of CD players are weakening,the profits are declining,and the product may face a fate similar to that of 8-track tape players.Based upon this information,you can correctly conclude that CD players are in the ____ stage,and MP3 players are in the _____ stage of the product life cycle.

A)decline; growth
B)decline; introduction
C)maturity; growth
D)decline; maturity

Question 23

Figure: 11-1
The marketing strategy in the stage in the product life cycle labelled "B" in Figure 11-1 would involve:

A)informing and educating
B)stressing points of difference
C)reminding users
D)minimal promotion

Question 24

Which of the following is a characteristic of the growth stage of the product life cycle?

A)advertising emphasis points of difference
B)growing proportion of initial purchasers to repeat purchasers
C)product features remain unchanged
D)profit margins increase as sales increase

Question 25

Consumers who are frequently on the Internet more than likely use either Internet Explorer or Firefox as their web browser.There is another option called Opera,which is faster and highly customizable.Opera was initially offered on the market for $29 and this includes tech support.It was hoped that this low price would build the volume of Opera users quickly.Opera used a(n)_____ strategy.

A)penetration pricing
B)cost-plus pricing
C)ROI pricing
D)market-oriented pricing

Question 26

Figure: 11-1
The stage in the product life cycle labelled "D" in Figure 11-1 is called

A)introduction
B)maturity
C)growth
D)decline

Question 27

Imagine that Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available)and can be recharged by sunlight up to 5 times,after which they are meant to be discarded.Unfortunately,the production process cannot be patented,and competitors could arrive within a few months.Eveready's marketing efforts should include all the following EXCEPT:

A)skimming.
B)widespread distribution.
C)high production capacity.
D)advertising aimed at brand name awareness.

Question 28

To discourage competitive entry,a company can price its new product low,using penetration pricing.This pricing strategy also helps to:

A)reduce costs.
B)increase profits.
C)build customer loyalty.
D)build unit volume.

Question 29

A recent study of Canadian small businesses found that almost ________ percent believe that branding is critical to business success.

A)15
B)35
C)55
D)85

Question 30

Which of the following statements about the introduction stage of the product life cycle is NOT true?

A)During the introduction stage, efforts are made to increase primary demand.
B)During the introduction stage, firms may choose a skimming strategy.
C)During the introduction stage, firms may choose a penetration pricing strategy.
D)During the introduction stage, firms stress competitive differences in their promotion.

Question 31

A new cellphone service provider enters the Canadian market place with "Unlimited Everything" (text,data,voice,long distance)at $10 a month plans.This pricing strategy is referred to as:

A)penetration pricing.
B)cost-plus pricing.
C)ROI pricing.
D)market-oriented pricing.

Question 32

When Apple launches a new iPhone version,the non-subsidized price (as in the price if you buy direct,without a three-year contract),is often $799 or $899,while older versions decrease in price.This initial high price is referred to as:

A)skimming pricing
B)cost-plus pricing
C)ROI pricing
D)market-oriented pricing

Question 33

Technology that allows consumers to access information on the Internet from a cell phone is in the introductory stage of its product life cycle.The industry is composed of several small firms with state-of-the-art products that are neither standardized nor compatible with one another.Moreover,these small firms have limited marketing expertise and little money to spend on marketing; their common strength is engineering.This industry would welcome the entry of a giant in the mobile phone industry like Nokia because:

A)the small companies could leapfrog beyond Nokia's products.
B)Nokia's entry would help segment the market, establishing targets for the smaller firms.
C)Nokia could set standards and generate primary demand.
D)Nokia could solve the remaining technological problems.

Question 34

A company follows a skimming strategy as part of introducing a new product to:

A)help recover costs of development and to capitalize on the price insensitivity of early buyers.
B)capitalize on the price sensitivity of early buyers and to postpone breakeven.
C)discourage competitors and build unit volume.
D)move the product into the maturity stage once primary demand has been create

Question 35

A few years ago Who Wants to Be a Millionaire premiered as the first nighttime game show in a couple of decades.Once the show became a hit and televised several nights a week,other networks quickly created their own version of what they hoped to be a successful game show format.Greed and Twenty-One are the names of but two of the new shows that were created to compete with Who Wants to Be a Millionaire.At this point in time the nighttime televised game show entered which stage of its product life cycle?

A)growth stage
B)decline stage
C)commercialization stage
D)maturity stage

Question 36

One aspect of a new company's goodwill strategy is for every shoe purchased in North America,one free shoe is donated to a child in Africa.This aspect plays a major role in product branding that is referred to as a:

A)social benefit brand
B)social brand
C)goodwill brand
D)CSR brand

Question 37

When Texas Instruments (TI)introduced its pocket calculator it was a tremendous product innovation,and TI set the mail order price at $495.What is the name of the pricing strategy Texas Instruments used?

A)rip off
B)chiseling
C)opportunistic
D)skimming

Question 38

INGenius ATG introduced the microware oven-sized battery recycler in 1999.It was intended for the business market.Companies could buy the recycler and use it to restore alkaline batteries that are not normally recharged.The recycling does not let a battery live forever; but it does give it a charge of about 80 percent of the energy it originally had.Depending on the size of the battery,the recycler can hold up to 96 batteries.It takes 13 hours to recharge any battery.The recycler was introduced at $3,000.When you consider that a pair of alkaline batteries can be purchased for $2,you should suspect that INGenius ATG was using a(n)_____ strategy.

A)skimming pricing
B)cost-plus pricing
C)ROI pricing
D)market-oriented pricing

Question 39

Figure: 11-1
The stage in the product life cycle labelled "A" in Figure 11-1 is referred to as

A)introduction
B)maturity
C)growth
D)diversification

Question 40

Figure: 11-1
The stage in the product life cycle labelled "C" in Figure 11-1 is called

A)introduction
B)maturity
C)growth
D)diversification

Question 41

Interbrand cites several factors that differentiate the Top Global and Canadian brands compared to their peers.All of the following are factors,except:

A)they listen to consumers, employees, and investors
B)they are in touch with their own humanity
C)they are sensitive to the needs and desires of informed and discerning customers
D)they are highly profitable and focus on consistent revenue growth

Question 42

Sales and profits both exhibit a steady downward trend throughout which stage of the product life cycle?

A)decline
B)growth
C)maturity
D)decay

Question 43

Your product has been suffering from steadily eroding sales and profits.You have tried a number of options to revitalize the product's sales and profits,but after seven changes in your strategy,you are yet to find success.Which of the following actions would be the LEAST appropriate next step?

A)Delete the product from the line.
B)Retain the product, but reduce its support costs.
C)Harvest the product.
D)Retain the product, but increase marketing support costs.

Question 44

Which of the following statements is a characteristic of the maturity stage of the product life cycle?

A)Often this stage is entered because of environmental or technological factors.
B)During this stage companies attempt to eliminate distribution channels.
C)Industry sales revenue peaks, which is one stage after industry profit peaks.
D)Industry profits peak because production and distribution costs are declining.

Question 45

As of 2012,which brand below was NOT part of Interbrand Report on the Top Canadian Brands:

A)TD
B)Thomson Reuters
C)RBC
D)Apple

Question 46

During the maturity stage of the product life cycle,profit declines because:

A)there are fewer and fewer competitors in the market.
B)better products are only in the growth stage.
C)production costs increase the more a firm has to manufacture the same product.
D)there is fierce price competition among sellers.

Question 47

The marketing objective of a firm whose product is in the maturity stage of the product life cycle is to:

A)actively search out new first time users.
B)maintain existing buyers since new ones are hard to find.
C)actively reinforce competitors' marketing efforts.
D)maintain existing distributors and actively seek out new ones.

Question 48

Promotional expenses at the maturity stage of the product life cycle are often directed towards:

A)creating demand for the product class.
B)contests and games.
C)creating primary demand.
D)gaining new distributors.

Question 49

Hybrid automobiles are in the ______ stage of the product life cycle.

A)introduction
B)growth
C)maturity
D)decline

Question 50

During the 1990s,there was a backlash against artificial colours in food and other consumer products.As a result,a lot of companies issued products that were clear.One example was Crystal Pepsi.The product never really found a market and was ____,or dropped from the Pepsi product line soon after its introduction.

A)diversified
B)aggregated
C)segmented
D)deleted

Question 51

According to a recent study conducted by the Canadian Marketing Association,building an effective brand is critical,yet becoming increasingly difficult and complex.All of the following are trends that are impacting the ability to build effective brands,except:

A)social media
B)changing demographics
C)new technology
D)social concerns

Question 52

Some social benefit brands are sometimes referred to as _________,if they focus on environmental sustainability.

A)green brands
B)eco brands
C)sustainable brands
D)environmental brands

Question 53

DVD players were introduced to the market in the 1990s.Ninety-one percent of North American homes own at least one DVD player.To maintain market share in the DVD player market and to get customers to purchase additional players,its manufacturers have continually provided for higher-quality recording capabilities and made the machines easier to watch and with different features that allowed for quicker location of recorded programs.Because the goal of DVD player manufacturers is to maintain brand loyalty and market share,the product category is in the _____ stage of its product life cycle.(Hint: do not consider Blu-ray players in your answer.)

A)introduction
B)growth
C)maturity
D)decline

Question 54

Soft drinks,gas-powered automobiles,and DVD players are in the _______ stage of their product life cycle.

A)development
B)introduction
C)growth
D)maturity

Question 55

All products are assumed to have a complete product life cycle.Which of the following is NOT a reason why products ultimately decline?

A)poor marketing
B)emergence of superior competitive products
C)all consumers' wants and needs inevitably change
D)non-marketing failures of firms

Question 56

All of the following occur during the decline stage of the product life cycle EXCEPT:

A)sales decrease substantially.
B)the firm chooses the wrong marketing strategy, which results in an inappropriate marketing program for the target market.
C)the uncontrollable environment changes.
D)promotional support for the product becomes minimal.

Question 57

An effective trademark and label can help thwart product:

A)counterfeiting
B)competitors
C)reselling
D)margins

Question 58

Hershey's chocolate bars have been marketed in North America for more than 100 years,and are still a tremendous success,with a loyal following of consumers.The company began advertising several years ago to hold its market share,and it has introduced several distinctive new products.What stage of the product life cycle are Hershey's chocolate bars competing in?

A)development
B)introduction
C)growth
D)maturity

Question 59

To handle products in the decline stage of the product life cycle,companies often use either:

A)diversification or building.
B)harvesting or contracting.
C)deletion or harvesting.
D)deletion or diversification.

Question 60

A technology company has just begun to make a profit on its DVD-R discs (DVD discs in a recordable format).Its promotional expenditures are aimed at trying to persuade potential customers of the merits of its DVD-R discs.Even more money is being spent to develop the firm's distribution system for its DVD-R discs.Since Apple's iMac now comes with a DVD recorder as a standard part,a few other companies have started producing DVD-R discs for the market.What stage of the product life cycle is the DVD-R in?

A)commercialization stage
B)maturity stage
C)growth stage
D)decline stage

Question 61

With virtually no marketing support,Sanford continues to sell its Liquid Paper correction fluid for use in typewriters,even in the era of word-processing equipment.This is an example of _______ during the decline stage of the product life cycle.

A)skimming
B)harvesting
C)profiting
D)deletion

Question 62

Coca-Cola has realized that the market for their first diet cola,Tab,has been significantly diminished,yet Coca-Cola still sells the product,without any major advertising to its niche market.Coca-Cola is engaging in product:

A)Skimming
B)Harvesting
C)Profiting
D)Deletion

Question 63

Figure: 11-2
The product life cycle (PLC)shown in "D" in Figure 11-2 is an example of a __________ life cycle.

A)high-learning product
B)low-learning product
C)fashion product
D)fad product

Question 64

An alternative product life cycle that results from products that are easily imitated by competitors,consumers who readily understand their benefits,and for which the appropriate marketing strategy is to gain strong distributor outlets is characteristic of _____ products.

A)high-learning
B)low-learning
C)fashion
D)fad

Question 65

An extended introduction stage of the product life cycle occurs for which type of product?

A)high-learning
B)low-learning
C)fashion
D)fad

Question 66

Interactive television with video on-demand capabilities will change how people watch television and how consumers access the Internet.What type of a product life cycle would be associated with this product?

A)exceptional
B)high-learning
C)low-learning
D)fashion

Question 67

Bow ties,hemmed skirts,and tie-clips are most likely what type of products?

A)high-learning
B)low-learning
C)fashion
D)fad

Question 68

A strategy of harvesting may be employed in the decline stage of a product life to:

A)maintain primary demand for a product category.
B)get as many new customers as possible.
C)maintain the ability to meet customers' requests.
D)eliminate production and distribution costs.

Question 69

Generally,the average length of time it takes for a product category to move from the introduction stage of its product life cycle to the decline stage is:

A)18 months.
B)5-10 years.
C)20 years.
D)unpredictable.

Question 70

Imagine Eveready has developed solar rechargeable batteries that cost only slightly more to produce than regular batteries (less than the rechargeable batteries currently available)and can be recharged by sunlight up to 5 times,after which they are meant to be discarded.Unfortunately,the production process cannot be patented,and competitors could arrive within a few months.Which of the following is the best description of the product life cycle of this product?

A)rapid growth followed by rapid decline
B)long, level beginning, and rapid ascent
C)moderately slow introduction, followed by modest growth, gradually levelling off
D)high introductory sales, with rapid decline

Question 71

Gillette's Fusion razor has achieved $1 billion in worldwide sales in less than 3 years despite the fact that it is a product that can be easily imitated by competitors.Consumers readily understand its benefits,and Gillette has used an appropriate marketing strategy to gain strong distributor outlets.These are characteristics of _____ products.

A)high-learning
B)low-learning
C)fashion
D)fad

Question 72

Figure: 11-2
The product life cycle (PLC)shown in "B" in Figure 11-2 is an example of a __________ life cycle.

A)high-learning product
B)low-learning product
C)fashion product
D)fad product

Question 73

There is no exact time that a product takes to move through its life cycle.As a rule:

A)fad products have the longest life cycle.
B)consumer products have shorter life cycles than business products.
C)packaged goods have a shorter life cycle than fads.
D)installations have a shorter life cycle than consumer products.

Question 74

A new social media product comes onto the market.Which person's description below is most likely to adopt the product first?

A)Jo: spends her time as a blogger for a local technology site
B)Lindsey: a doctor, usually likes to wait until something is proven first, just like in medicine
C)Brady: a lawyer, who is always skeptical of these things, hence why she is a lawyer!
D)Matt: money is tight, as he is working contract-to-contract

Question 75

Which of the following products is the best example of a product that might experience an introduction,a decline,and a reintroduction as part of its normal product life cycle?

A)cat food
B)veterinarian services
C)cake mixes
D)fishnet hose

Question 76

When a product reaches the decline stage of the product life cycle,a firm has two choices.One choice involves product deletion,where a product is dropped from a firm's product line.Another less drastic choice is to retain the product in the product line,but to reduce marketing costs.When this option called _____ is selected,advertising expenditures for the product are reduced and salespeople do not devote their efforts to selling the product.

A)decline maintenance
B)harvesting
C)divestment
D)maturity re-development

Question 77

The Campbell Soup company advertises more heavily in warm months to encourage consumers to think of soup as more than a cold-weather food.As Campbell Soup is trying to increase use they are using a ___________________ strategy in managing the product life cycle.

A)market repositioning
B)product repositioning
C)product modification
D)market modification

Question 78

Implementing a harvesting strategy would mean that:

A)advertising dollars are increased, recognizing the profitability of the product
B)growth of the product is significant, hence "harvesting" the profits
C)advertising dollars are decreased
D)the product line is being expanded

Question 79

Figure: 11-2
The product life cycle (PLC)shown in "A" in Figure 11-2 is an example of a __________ life cycle.

A)high-learning product
B)low-learning product
C)fashion product
D)fad product

Question 80

Figure: 11-2
The product life cycle (PLC)shown in "C" in Figure 11-2 is an example of a __________ life cycle.

A)high-learning product
B)low-learning product
C)fashion product
D)fad product