Question 1

ComicalYou is a new social media service in which participants create avatars to represent themselves, describe their lives, and interact with one another. All the postings are graphical, presenting the messages in the form of comic panels and strips. The service's software easily converts ideas into whimsical images. The site's creators, Ginny and RJ, believe that ComicalYou will be especially appealing to young people because it is so effective in conveying emotional content with a lighthearted appeal. They, along with a team of six employees, have completed the software, tested it on two dozen of their closest friends, and are eager to open up their site to users. As ComicalYou reaches the introduction stage of the product life cycle, what marketing strategy is most appropriate?

Accepted Answer

Since ComicalYou is in the introduction stage, the focus should be on making customers aware of the product and its benefits. This can be achieved through advertising and other promotional activities to build brand awareness and attract early adopters. Lowering the price or cutting prices in response to competition is not appropriate at this stage as the main objective should be to establish the product in the market and demonstrate its value. Developing product adaptations to extend the product's life is also not appropriate since the product has just been launched and has not yet reached maturity in the market.

Question 2

The marketing concept says that profitability is more important than any other criterion.

Accepted Answer

The marketing concept states that customer satisfaction should be the primary focus of all business activities, with the ultimate goal of achieving long-term profitability. While profitability is important, it is not the only criterion that should be considered when making business decisions. Other factors such as customer needs, market trends, and overall business goals should also be taken into account.

Question 3

The term "product" in the marketing mix includes physical goods but not services.

Accepted Answer

The term "product" in the marketing mix includes both physical goods and services.

Question 4

Changing social values have forced companies to develop and promote new products for individual consumers, but industrial customers have not been affected nearly as much.

Accepted Answer

Industrial customers are also affected by changing social values, as these can influence corporate sustainability goals, procurement practices, and the demand for environmentally friendly or ethically sourced materials, leading companies to adapt their offerings for both individual consumers and industrial clients.

Question 5

ComicalYou is a new social media service in which participants create avatars to represent themselves, describe their lives, and interact with one another. All the postings are graphical, presenting the messages in the form of comic panels and strips. The service's software easily converts ideas into whimsical images. The site's creators, Ginny and RJ, believe that ComicalYou will be especially appealing to young people because it is so effective in conveying emotional content with a lighthearted appeal. They, along with a team of six employees, have completed the software, tested it on two dozen of their closest friends, and are eager to open up their site to users. What steps in the development process should Ginny and RJ complete before they commercialize ComicalYou?

Accepted Answer

Before commercializing ComicalYou, Ginny and RJ should conduct a thorough business analysis to determine the viability of their service and test market it to gather feedback and make necessary adjustments before launching on a larger scale. This will help ensure that the service meets the needs and desires of the target audience and has the potential to be profitable. While prototype development and product ideas are important steps in the development process, they are not sufficient on their own to ensure the success of the service. Similarly, concept testing, screening, and product ideas are useful steps in the development process, but without the additional step of test marketing, there is no way to know for sure if the service will be successful in the market.

Question 6

Customer relationship management (CRM) focuses on building better information connections with clients.

Accepted Answer

CRM is a strategy that aims to improve relationships with customers by collecting and analyzing data about their preferences and behaviors, which can help businesses better understand their needs and cater to them more effectively.

Question 7

Marketing plays a role in creating time, place, and ownership utility, but not in creating form utility (which is the job of the production area).

Accepted Answer

Marketing plays a role in creating form utility by identifying consumer needs and preferences, and then designing products or services that satisfy those needs. However, the production area is responsible for actually creating the form of the product or service.

Question 8

The marketing plan identifies the marketing objectives stating what marketing will accomplish in the future.

Accepted Answer

The marketing plan is designed to identify the marketing objectives that need to be achieved in the future. These objectives serve as a guide to develop marketing strategies and tactics to achieve the desired results. Therefore, marketing plans should consist of clear and specific marketing objectives to ensure focus and measurable results.

Question 9

Marketing focuses largely on consumer goods and less on consumer services.

Accepted Answer

This statement is not entirely true. While consumer goods do receive a significant amount of marketing attention, consumer services also play an important role in marketing. Services such as hospitality, healthcare, and financial services, among others, require tailored marketing strategies to reach and engage their target audiences.

Question 10

ComicalYou is a new social media service in which participants create avatars to represent themselves, describe their lives, and interact with one another. All the postings are graphical, presenting the messages in the form of comic panels and strips. The service's software easily converts ideas into whimsical images. The site's creators, Ginny and RJ, believe that ComicalYou will be especially appealing to young people because it is so effective in conveying emotional content with a lighthearted appeal. They, along with a team of six employees, have completed the software, tested it on two dozen of their closest friends, and are eager to open up their site to users. Ginny and RJ are correct: ComicalYou becomes a hit with young people, even with a $5 per month subscription fee. Within two years, it becomes the number one online destination for people in their teens and twenties, and usage soars. An online social network introduces a comics creation tool to compete with ComicalYou for 10 cents per message. What marketing strategy is most appropriate for this stage of the product life cycle?

Accepted Answer

Since a competitor has entered the market, the best strategy at this stage of the product life cycle is to lower prices slightly and continue promotional expenditures to keep demand growing. This will help to maintain the product's market share and attract new customers.

Question 11

Since a person's cholesterol level can be controlled with either a physical-fitness program or a drug regimen, this means that fitness programs and cholesterol drugs compete as substitute products.

Accepted Answer

Since both physical fitness programs and cholesterol drugs can control a person's cholesterol level, they can be considered substitute products. If a person chooses to use a physical fitness program to control their cholesterol, they may not need to use a cholesterol drug, and vice versa. This makes them competing products as they serve the same purpose.

Question 12

ComicalYou is a new social media service in which participants create avatars to represent themselves, describe their lives, and interact with one another. All the postings are graphical, presenting the messages in the form of comic panels and strips. The service's software easily converts ideas into whimsical images. The site's creators, Ginny and RJ, believe that ComicalYou will be especially appealing to young people because it is so effective in conveying emotional content with a lighthearted appeal. They, along with a team of six employees, have completed the software, tested it on two dozen of their closest friends, and are eager to open up their site to users. What will make the product testing and test marketing stage challenging for an online product such as ComicalYou?

Accepted Answer

One of the challenges for ComicalYou during the product testing and test marketing stage could be containing the testing to a limited market. If word spreads quickly, it may become challenging to control the growth of the product and properly test its functionality before releasing it fully to the public.

Question 13

With respect to the 4 P's, "price" refers only to the actual amount of money that consumers must pay for a product or service.

Accepted Answer

"Price" in the 4 P's refers not only to the actual amount of money that consumers must pay for a product or service but also to the perceived value and pricing strategy used by the company.

Question 14

New developments in technology have had a big impact on the production area of a business, but much less impact on the marketing area.

Accepted Answer

New developments in technology have had a significant impact on the marketing area as well. The rise of digital marketing, social media, and big data analytics have completely revolutionized how businesses can advertise, target customers, and measure the success of their campaigns. Additionally, e-commerce platforms have opened up new sales channels and enabled businesses to reach customers all over the world.

Question 15

The value of a product, service, or idea to a consumer is based on the formula "costs divided by benefits."

Accepted Answer

The formula for the value of a product, service, or idea to a consumer is actually "benefits divided by costs." This is because consumers are generally looking for the greatest benefits or usefulness for the lowest cost or price.

Question 16

The marketing concept means that the marketing function in a business is more important than either production or finance.

Accepted Answer

The marketing concept does not mean that the marketing function is more important than production or finance. Rather, it is a philosophy that focuses on meeting the needs and wants of customers while achieving the goals of the organization. All three functions - marketing, production, and finance - are essential to the success of a business.

Question 17

Marketing plans, decisions, and strategies are not determined unilaterally by any business. Rather, they are strongly influenced by powerful environmental forces.

Accepted Answer

Environmental forces, such as economic conditions, competitors, technological advancements, legal regulations, and social trends have a significant impact on a business's marketing plans, decisions, and strategies. Therefore, they cannot be determined unilaterally by any business.

Question 18

The primary way to distinguish consumer goods from industrial goods is by considering the "place" element of the marketing mix.

Accepted Answer

The primary way to distinguish consumer goods from industrial goods is by considering the purpose for which they are produced. Consumer goods are produced for personal use, while industrial goods are produced for business or industrial use. The place element of the marketing mix refers to the location where the product is sold or distributed, and it is not a primary way to distinguish between consumer and industrial goods.

Question 19

The four P's of the marketing mix are product, pricing, promotion, and place.

Accepted Answer

The four P's of the marketing mix are product, pricing, promotion, and place.

Question 20

A few marketing powerhouses like Coca-Cola and Procter & Gamble can develop their marketing strategies without too much concern about the external marketing environment, but most companies must pay a lot of attention to the external marketing environment.

Accepted Answer

All companies, including marketing powerhouses like Coca-Cola and Procter & Gamble, must pay close attention to the external marketing environment to stay competitive and relevant, as it influences consumer preferences, regulatory landscapes, and competitive dynamics.

Quiz 12: Understanding Marketing Principles and Developing Products

The marketing concept says that profitability is more important than any other criterion.

The term "product" in the marketing mix includes physical goods but not services.

Changing social values have forced companies to develop and promote new products for individual consumers, but industrial customers have not been affected nearly as much.

Customer relationship management (CRM) focuses on building better information connections with clients.

Marketing plays a role in creating time, place, and ownership utility, but not in creating form utility (which is the job of the production area).

The marketing plan identifies the marketing objectives stating what marketing will accomplish in the future.

Marketing focuses largely on consumer goods and less on consumer services.

Since a person's cholesterol level can be controlled with either a physical-fitness program or a drug regimen, this means that fitness programs and cholesterol drugs compete as substitute products.

With respect to the 4 P's, "price" refers only to the actual amount of money that consumers must pay for a product or service.

New developments in technology have had a big impact on the production area of a business, but much less impact on the marketing area.

The value of a product, service, or idea to a consumer is based on the formula "costs divided by benefits."

The marketing concept means that the marketing function in a business is more important than either production or finance.

Marketing plans, decisions, and strategies are not determined unilaterally by any business. Rather, they are strongly influenced by powerful environmental forces.

The primary way to distinguish consumer goods from industrial goods is by considering the "place" element of the marketing mix.

The four P's of the marketing mix are product, pricing, promotion, and place.

A few marketing powerhouses like Coca-Cola and Procter & Gamble can develop their marketing strategies without too much concern about the external marketing environment, but most companies must pay a lot of attention to the external marketing environment.