Deck 9: Product-Mix Strategies

Question 1

The set of all products offered for sale by a company is called its:

A) product breadth.
B) product mix.
C) marketing mix.
D) product line.
E) strategic position.

Answer 1

product mix.

Question 2

A product mix is:

A) the list of tangible goods and intangible services provided by a combination of several different retail outlets.
B) a combination of all goods created by the production process and all services provided by members of the channel at all levels.
C) the combination of goods, services, price, promotion, and distribution in a company.
D) the full set of all products sold by a company.
E) not applicable to a company that sells only services.

Answer 2

the full set of all products sold by a company.

Question 3

Sumptuous Cakes is the name of a Georgia company that bakes and sells cakes through the mail. The company markets five kinds of cakes: old-fashioned pound cake, amaretto cream, lemon crisp, poppy seed, and chocolate delight. These cakes are all the company markets. These five types of cakes are the company's:

A) product mix.
B) market position.
C) target product.
D) product line.
E) strategic mission.

Answer 3

product mix.

Question 4

The breadth of a company's product mix refers to:

A) sales volume in each product line.
B) the assortment of sizes and colors within each product line.
C) market share for each product carried.
D) the number of different models available in a given product line.
E) the number of product lines carried.

Question 5

Which of the following is the best example of a company that is expanding the breadth of its product mix?

A) Aim creates strawberry-, peach-, and apple-flavored toothpastes.
B) Gerber baby food begins selling term life insurance to grandparents.
C) Lever Brothers introduces Lever 2000 liquid soap.
D) Friskies cat food introduces single-serving cans.
E) Breyer's ice cream introduces a fat-free yogurt.

Question 6

The Clorox Company, manufacturer of bleach, has added a line of bleach-free disinfectant wipes for cleaning up spills and sticky fingers. With the Clorox disinfecting wipes, the Clorox Company has changed its:

A) market position.
B) product breadth.
C) market segmentation strategy.
D) position in the product life cycle.
E) product depth.

Question 7

Up until 1930, all the Planters Nut Company sold was roasted peanuts. When Planters introduced Planters peanut oil in 1930, it changed its:

A) market position.
B) product breadth.
C) market segmentation strategy.
D) position in the product life cycle.
E) product depth.

Question 8

Up until 1930, all the Planters Nut Company sold was roasted peanuts. Then it added cashews, walnuts, pecans and related products using nuts to its product line. Later, by adding Cheez balls cheese-flavored snacks to the products it offered to consumers, the Planters Company modified its:

A) undifferentiated marketing strategy.
B) product mix.
C) market segmentation strategy.
D) position in the growth stage of the product life cycle.
E) planned obsolescence.

Question 9

Hormel has added a reduced-fat pepperoni to its line of meat products, which includes hotdogs, kielbasa sausage, and regular pepperoni. Hormel modified its:

A) market position.
B) product breadth.
C) market segmentation strategy.
D) position in the product life cycle.
E) product depth.

Question 10

The first product the Planters Nut Company sold was peanuts. Then it added cashews, walnuts, pecans and related products using nuts to its product mix. When Planters introduced honey-roasted peanuts in 1985, it modified the _____ of its peanut product line.

A) market position
B) product breadth
C) market segmentation strategy
D) position in the product life cycle
E) product depth

Question 11

An addition of fruit-flavored teas to the existing line of Nestea teabags and loose-leaf tea products is an example of a change in the company's:

A) market position.
B) product breadth.
C) market segmentation strategy.
D) position in the product life cycle.
E) product depth.

Question 12

The assortment of sizes, colors, and models offered within each product line is a measure of the:

A) depth of a product mix.
B) intensity of product line competition.
C) estimated sales volume.
D) width of a product mix.
E) company's positioning strategy.

Question 13

Which of the following is an example of a company that has expanded the depth of its product mix?

A) L'Oreal introduces additional hair colorings for women.
B) Pet Food Company purchases Old El Paso brand salsa.
C) H&R Block introduces America to Compuserve.
D) Sears purchases a national real estate agency.
E) None of the above is an example of a company that has expanded the depth of its product mix.

Question 14

A broad group of products intended for essentially similar uses and possessing reasonably similar physical characteristics constitutes:

A) a marketing mix.
B) a product mix.
C) a product line.
D) product breadth.
E) a strategic position.

Question 15

Campbell's makes many varieties of soup. Its ten different varieties of condensed vegetable soups is an example of:

A) a marketing mix.
B) a product mix.
C) a product line.
D) product breadth.
E) a strategic position.

Question 16

A product line is:

A) not applicable to a company that sells only one product.
B) the full list of all tangible and intangible goods provided by a retail outlet.
C) the combination of goods, services, price, promotion, and distribution in a company.
D) the full list of all products sold by a company.
E) a broad group of products that have essentially the same use and possess reasonably similar physical characteristics.

Question 17

In a leather goods store, an example of product lines might include:

A) several different colors of sandals.
B) each separate element of the store's marketing mix.
C) purses, vests, belts, sandals, and shoes.
D) the various leather polishes that the store carries.
E) all the different lengths of leather shoestrings the store has in stock.

Question 18

An example of product lines that might be found in a gift shop include:

A) all of the postcards that the store carries.
B) the various types of seasonal gift wrapping paper sold in the store.
C) any Precious Moments bride and groom figurines in the store.
D) ceramic shoes, silk flowers, and jewelry carried in the store.
E) the layout of the store.

Question 19

In a bed-and-bath shop, sheets, towels, soap dispensers, and bath mats constitute:

A) the store's marketing mix.
B) four separate product lines.
C) the depth of the store's product line.
D) the breadth of the store's product line.
E) a fashion cycle.

Question 20

A product's _____ is the image it projects in relation to competitive products as well as to other products marketed by the same company.

A) positioning
B) status
C) perception
D) marketing mix
E) attitude

Question 21

A product's positioning:

A) is the image projected by the product, exclusive of its price.
B) is the image the product projects in relation to competitive products as well as to other products marketed by the same company.
C) is the product's physical characteristics.
D) is how the product is perceived by its competitors.
E) prevents the product's producer from engaging in market segmentation.

Question 22

Marketers can position their products in relation to:

A) a competitor.
B) a product attribute.
C) a product class.
D) price and quality.
E) all of the above.

Question 23

Which of the following is the best example of positioning in relation to a competitor?

A) Pepsi test markets low-fat milkshakes.
B) Coca-Cola conducts taste tests between its Minute Maid orange juice and Pepsi's Tropicana, with Minute Maid winning.
C) Celestial Seasonings, a company known for its herbal teas, introduces a caffeinated line called Fast Lane.
D) Pepsi sells Masagran, its canned ready-to-drink coffee, at Starbucks locations.
E) Coca-Cola introduces a canned ready-to-drink coffee, called Georgia, in Japan.

Question 24

An ad for Mott's apple sauce states the sauce contains only U.S.-grown apples while White House apple sauce, one its major competitors, uses imported apples that are not as fresh. How is Mott's apple sauce positioning itself?

A) in relation to a competitor
B) by price and quality
C) by product class
D) in relation to demographics
E) on the basis of product life cycle

Question 25

Advil's advertising claims that "the medicine in Advil is prescribed more for arthritis pain than the medicine in Tylenol and Tylenol Arthritis Extended Relief." How is Advil positioning itself?

A) in relation to a competitor
B) by price and quality
C) by product class
D) in relation to demographics
E) on the basis of product life cycle

Question 26

The ad for Beechnut baby food indicates that it uses no chemically modified starches or added salt as Gerber does. This is an example of positioning:

A) in relation to a competitor.
B) by price and quality.
C) by product class.
D) in relation to demographics.
E) on the basis of product life cycle.

Question 27

The ad for Sugar Twin Plus tells consumers that "it tastes more like sugar without all the bitter aftertaste of the leading brand of artificial sweetener." This is an example of positioning:

A) in relation to a competitor.
B) by price and quality.
C) by product class.
D) in relation to geographical location.
E) on the basis of product life cycle.

Question 28

Focus groups and other research indicated to L.L. Bean, a pioneer in mail-order clothing, that it should develop a line of children's clothes that are warm and comfortable--not cute cutdown versions of adult styles. L.L. Bean is most likely trying to use positioning _____ with its new product line.

A) in relation to a competitor
B) by marketing research
C) by product class
D) in relation to geographical location
E) on the basis of product life cycle

Question 29

VISA is a fabric manufactured by Milliken. VISA's advertising claims that table linens made out of VISA fabric will "yield the best soil-release and lowest processing costs of any fabric in the business. They'll also last four to five times longer than cotton or blends." Milliken is using positioning _____ to market VISA fabric.

A) in relation to scientific test results
B) by marketing research
C) by product attribute
D) in relation to geographical location
E) on the basis of product life cycle

Question 30

The Gillette Sensor for Women is advertised as the "finest razor ever created for the way a woman shaves." This is an example of positioning:

A) on the basis of product life cycle.
B) by price and quality.
C) by product attribute.
D) on the basis of space availability.
E) in relation to none of the above.

Question 31

Kofola is a Czech cola that was created during the communist era. Its sales collapsed after the fall of communism. Consumers perceived Coca-Cola to be "glamorously capitalistic." During the first decade of this century, the cola has made a strong comeback by using an appeal to nostalgia and through the use of heartwarming scenarios in its advertising. This is an example of positioning:

A) on the basis of product life cycle.
B) by price and quality.
C) by product attribute.
D) on the basis of space availability.
E) in relation to none of the above.

Question 32

Curad, maker of first aid products, has introduced a plastic reusable storage box for its plastic strips and recyclable paper boxes of strips to refill the plastic boxes. This environmentally friendly strategy is an example of positioning:

A) in relation to geographical location.
B) by price and quality.
C) by product attribute.
D) on the basis of space available.
E) in relation to planned obsolescence.

Question 33

One of the most expensive windows that can be bought is crafted by Andersen Windows. The company makes its windows according to the highest standards and pays attention to the smallest detail. From this information, you know that Andersen Window uses product positioning:

A) in relation to geographical location.
B) by price and quality.
C) in relation to stage of the product life cycle.
D) on the basis of space available.
E) in relation to planned obsolescence.

Question 34

_____ is accomplished by increasing the depth within a particular line and/or the number of lines offered to a customer.

A) A product hierarchy
B) Product feedback
C) Product-mix expansion
D) Incremental customer service
E) Incremental distribution

Question 35

When Curity, manufacturer of Curad first aid products, introduced Curad plastic strips in neon colors, it was an example of a(n):

A) change in strategic marketing strategy.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) organizational restructuring.

Question 36

Kofola is a Czech cola that was created during the communist era. Its sales collapsed after the fall of communism. Consumers perceived Coca-Cola to be "glamorously capitalistic." During the first decade of this century, the cola has made a strong comeback. The beverage company has been so successful with its cola that it has introduced a citrus version as well as a children's fruit-based drink--all marketed under the Kofola brand. This is an example of a(n):

A) change in strategic marketing strategy.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) organizational restructuring.

Question 37

The fronts of GE's CustomStyle Refrigerators look like cabinetry, in order to blend in physically and fashionably with the rest of the kitchen. The GE CustomStyle Refrigerators are an example of:

A) a change in strategic marketing strategy.
B) a mix extension.
C) a change in organizational goals.
D) a line extension.
E) organizational restructuring.

Question 38

When the manufacturer of Benadryl allergy medication introduced Benadryl Allergy Chewables in grape flavor, it was an example of:

A) a change in strategic marketing strategy.
B) a mix extension.
C) a change in organizational goals.
D) a line extension.
E) organizational restructuring.

Question 39

The main reason for using a line-extension strategy is to:

A) reflect changes in organizational goals.
B) increase a product's breadth.
C) modify a product line's life cycle.
D) appeal to more market segments.
E) bring the company's activities more in line with the marketing concept.

Question 40

When La-Z-Boy introduced Small Comforts, a selection of recliners designed for petites, it was an example of a(n):

A) change in strategic marketing strategy.
B) positioning in relation to a competitor.
C) change in organizational goals.
D) line extension.
E) organizational restructuring.

Question 41

In 2003, Planters introduced Planters peanuts coated in chocolate, a snack food from the company that was the first to sell prepackaged, single-serving bags of peanuts. With this new product, Planters used a _____ strategy.

A) trading down
B) product alteration
C) line extension
D) repositioning
E) product-mix contraction

Question 42

When Fruit of the Loom, the manufacturer of men's and boy's underwear, introduced sweatshirts, turtlenecks, and shorts, it exemplified a:

A) change in strategic marketing strategy.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) strategy of managing on the rise.

Question 43

When Giorgio Armani, the Italian designer, added a home décor division under the Armani brand, it was an example of:

A) change in strategic marketing strategy.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) strategy of managing on the rise.

Question 44

For years Lenox had a reputation as a manufacturer of fine china for dining. When the company began manufacturing crystal sculptures for the collector's market, it was an example of a:

A) change in strategic marketing tactics.
B) mix extension.
C) change in organizational goals.
D) line extension.
E) strategy of managing on the rise.

Question 45

Often the strategy of altering an existing product:

A) is more risky than developing a new product.
B) is more expensive than developing a new product.
C) does not allow a company to engage in market segmentation.
D) prevents a company from positioning its products.
E) is more profitable than developing a new product.

Question 46

The demographic group referred to as baby boomers is a large group that is quickly approaching a time in their lives where they become increasingly concerned about hiding signs of their own age. In response to this desire to stay young looking, Jergens lotion has added alpha hydroxy to its lotion to smooth out tiny wrinkles. This addition of alpha hydroxy to Jergens lotion is an example of:

A) trading up.
B) product alteration.
C) product mix contraction.
D) repositioning.
E) trading down.

Question 47

Carnation Instant Breakfast is an enriched powder that when mixed with milk makes a healthy breakfast. The product has been offered in a box that is shaped more like a cereal box. A new packaging design has been created, which is cube-shaped. The new shape with make the package easier to store. The new packaging is an example of:

A) trading up.
B) product alteration.
C) product mix contraction.
D) repositioning.
E) trading down.

Question 48

To indicate to its consumers that Special K cereal is as good a source of calcium as milk is, Kellogg's began packaging the cereal in milk cartons instead of the usual packaging we associate with cereal. This is an example of:

A) trading up.
B) product alteration.
C) product augmenting.
D) trading down
E) trading down.

Question 49

The addition of lotion to Kleenex tissues to make them more soothing is an example of:

A) trading down.
B) product alteration.
C) product augmenting.
D) repositioning.
E) trading down

Question 50

Campbell's used a _____ strategy when it added 15 percent more rice to its Southwest Style Chicken Vegetable soup.

A) trading up
B) product alteration
C) product augmenting
D) trickle-up
E) trading down

Question 51

Concern about infants' overexposure to sun encouraged Coppertone to introduce Coppertone Water BABIES, a specially formulated sun protector for babies. This is an example of:

A) trading up.
B) product alteration.
C) product augmenting.
D) repositioning.
E) trading down.

Question 52

For the most part smokers are relegated to outside and uncomfortable areas in public because so many non-smokers are offended by cigarette smoke. In response to what was viewed as a consumer need, RJR Nabisco Holdings Corp spent $425 million developing a smokeless cigarette called Eclipse, and many more dollars promoting and distributing the product. The product was a flop, and RJR Nabisco was forced to implement a _____ strategy by withdrawing the product from the market.

A) trading down
B) produce alteration
C) diversification
D) repositioning
E) product-mix contraction

Question 53

In the 1970s, Gillette introduced The Hot One, a self-heating can of shaving cream, but stopped making it when it found little demand for the product beyond well-groomed campers. Gillette used a _____ strategy with The Hot One.

A) trading down
B) produce alteration
C) diversification
D) repositioning
E) product-mix contraction

Question 54

In 1990s, Gekkeikan introduced sake in self-heating cans to the Japanese market. By 2002, it was obvious that design flaws in the can had led to low sales and high production costs. Gekkeikan then used a _____ strategy and stopped manufacturing the product.

A) trading down
B) produce alteration
C) diversification
D) repositioning
E) product-mix contraction

Question 55

Which of the following is most likely the goal of a company that eliminates a product line?

A) to get rid of low- or no-profit products
B) to increase the depth of the product mix
C) to adapt strategies as necessary during the growth stage in the product life cycle
D) to engage in product differentiation
E) to enter new markets

Question 56

_____ means adding a higher-priced, prestige product to a line to attract a higher-income market.

A) Trading up
B) Revamping
C) Product line augmentation
D) Repositioning
E) Trading down

Question 57

Trading up m

A) consumers stop patronizing lower-priced stores and start patronizing higher-priced, more exclusive shops.
B) serving the upper and upper-middle classes exclusively.
C) raising the price of every product in the product line.
D) consumers stop buying lower-priced products and buy higher-priced ones.
E) adding a higher-priced, prestige product to a line to attract a higher-income market.

Question 58

Which of the following is an example of trading up?

A) Trident introduces a chewing gum that replenishes the calcium in teeth.
B) Armstrong Flooring introduces a line of flooring based on designs from nature.
C) A prescription-only sinus medication runs an ad in Better Homes & Gardens magazine.
D) A car repair shop hires a mechanic who can work on Ferraris, Porsches, and other luxury sports cars.
E) A children's clothing store adds a line of inexpensive toddler sandals to its mix.

Question 59

Which of the following is an example of trading up?

A) Celestial Seasonings, a company known for its herbal teas, has introduced a caffeinated line of tea called Fast Lane.
B) Larry's Furniture Store has changed its name to Nouveau Style and started selling reproductions of . antique pieces from colonial America.
C) The Little Theater expanded its facilities so it now has space to offer dinner along with its show.
D) WPTY, a local radio station, added a lunchtime traffic report.
E) Gwen's House of Brides now rents tuxedos, too.

Question 60

Trading down m

A) the process in which consumers stop buying overpriced products and become more price conscious.
B) serving the lower and lower-middle classes exclusively.
C) adding a lower-priced item to a line of products.
D) lowering the price of every product in the product line.
E) none of the above.

Question 61

A company is said to be _____ when it adds a lower-priced item to its line of products.

A) trading up
B) revamping
C) product augmenting
D) repositioning
E) trading down

Question 62

The Holiday Inn chain of motels added luxury hotels to its product line when it introduced Crowne Plaza hotels. This addition of a luxury hotel to the medium-priced Holiday Inns is an example of:

A) trading up.
B) revamping.
C) product augmenting.
D) repositioning.
E) trading down.

Question 63

Which of the following is an example of trading down?

A) A line of La-Z-Boy recliners is covered with EcoSpun velvets made from recycled plastic soda bottles.
B) The manufacturer of Mr. Coffee introduces the Iced Tea Pot.
C) Smucker's, which is famous for its jams and jellies, introduces a line of chocolate toppings.
D) Waterford crystal adds a line of plastic glassware in its most popular hand-cut crystal patterns.
E) The America Dairy Farmers National Dairy Board encourages consumers to cook with real butter.

Question 64

Which of the following is an example of trading down?

A) Whirlpool develops a full-size clothes washer that uses only 17 to 28 gallons per load rather than 25 to 45 gallons.
B) Burpee creates a Web site where gardeners can go to find out what will grow best in their region of the country.
C) Alka-Seltzer reintroduces a trade character that it used in the 1960s.
D) The growers of California avocados run a full-page ad in a cooking magazine.
E) A manufacturer of $200+ all-leather handbags begins marketing a line of bags that look like leather but . are actually made of relatively inexpensive plastic.

Question 65

According to its ads, Breitling makes chronometers, even though you and I might think they look like watches. Its cheapest chronometer sells for $200. Some models can cost $5,000 or more. If Breitling were to add an economy-priced line of watches to be sold at grocery checkout stands, it would be an example of:

A) trading up.
B) revamping.
C) product augmenting.
D) repositioning.
E) trading down.

Question 66

Estman Trading Company sells authentic Civil War memorabilia priced from $200 to $30,000. If Estman Trading Company were to introduce a line of facsimiles of some of the harder-to-find denominations of Confederate bills and sell these facsimiles at $25 each, it would be an example of:

A) trading up.
B) revamping.
C) product augmenting.
D) repositioning.
E) trading down.

Question 67

Which of the following statements about trading down is True?

A) When trading down is used, the new product may permanently hurt a firm's reputation.
B) Essentially trading down involves product innovation.
C) Trading down is a much safer strategy to employ than trading up.
D) The only element of the marketing mix affected by a strategy of trading down is distribution.
E When trading down is used, the major problem is how to change the firm's image enough so new

. customers will accept the higher-priced products.

Question 68

The seller's potential problem with a strategy of trading down is:

A) legal restrictions on the size of any price increase.
B) packaging.
C) determining competitors' reactions.
D) deciding how to test market the new product.
E) the injury to the company's reputation that a lower-quality product might cause.

Question 69

The seller's major challenge with a strategy of trading up is:

A) packaging.
B) product innovation.
C) predicting the reaction of competitors.
D) how to come up with a new brand name that meets tight legal restrictions.
E) how to change the firm's image enough so new customers will accept the higher-priced products.

Question 70

The owner of Downtown Car Repair, a well-established business, has hired two new mechanics who are trained to work on luxury cars like Mercedes-Benz and Lexus. To pay for the expertise of the new mechanics and the price of replacement parts for these cars, the owner raised prices by 15 percent. Downtown Car Repair's major challenge will be:

A) avoiding conflict between the new and old mechanics.
B) changing the firm's image enough so that new customers will accept the higher-priced services.
C) determining variable costs.
D) calculating break-even points.
E) predicting the reaction of the shop's competitors.

Question 71

Which of the following statements about the product life cycle is True?

A) A company's marketing success is unrelated to its management's ability to understand the product life cycle concept.
B) The product life cycle can be illustrated with a supply curve.
C) The product life cycle can be illustrated with a cost curve.
D) The product life cycle concept does not apply to a generic category of product.
E) None of the above statements about the product life cycle is True.

Question 72

As described by the product life cycle, the profit curve for most new products:

A) is unaffected by the product life cycle.
B) is negative through most (perhaps all) of the introductory stage of the product life cycle.
C) has exactly the same shape as the sales volume curve.
D) will not vary from product to product.
E) is negative during all of the growth stage of the product life cycle.

Question 73

During the introductory stage of a product's life cycle,:

A) the promotional program is designed to stimulate demand for the product category.
B) there is very little direct competition.
C) costs are high.
D) the profit curve is negative through most (perhaps all) of this stage.
E) all of the above are True.

Question 74

Another name for the introductory stage of the product life cycle is the _____ stage.

A) immature
B) pioneering
C) untapped
D) undeveloped
E) incipient

Question 75

Which of the following is NOT normally considered a stage in the product life cycle?

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

Question 76

Thermotic Developments, Ltd. of Britain has developed a safe and reliable self-heating can for consumers who want hot coffee but are too busy to stop for a cup. Since the product is in the introductory stage of its product life cycle, Thermotic Developments can expect to:

A) have brand-loyal customers.
B) use a defensive positioning strategy.
C) have low levels of sales at first.
D) use intensive distribution.
E) have annually declining profits.

Question 77

Thermotic Developments, Ltd, a British company has introduced a safe and reliable self-heating can for consumers to who want hot coffee busy are too busy to stop for a cup. The appropriate marketing strategy for Thermotic is the _____ strategy.

A) defensive positioning
B) trading down
C) market penetration
D) market development
E) product-mix expansion

Question 78

In 1990s, Gekkeikan introduced sake in self-heating cans to the Japanese market. It was the first product of its type for Japanese consumers. As a result, Gekkeikan _____ during the product's introductory stage.

A) attracted all classifications of product adopters
B) tried to create brand loyalty
C) was in the market-acceptance stage of its product life cycle
D) had to develop a market for its product
E) did all of the above

Question 79

Whirlpool has recently developed a top-loading washer that saves from 7 to 17 gallons of water per full-size load and uses about 56 percent less electricity than other washers. Since this washer is significantly different from others currently on the market, Whirlpool will need to:

A) anticipate a large amount of immediate and direct competition from other washer manufacturers.
B) adopt a defensive positioning strategy.
C) seek to achieve low production costs through economies of scale.
D) design a promotional program to stimulate demand for the new product.
E) use a reinforcement promotion strategy.

Question 80

Which of the stages of the product life cycle is the most risky and expensive?

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