Question 1

Craftsman tools (Sears), Life products (Shoppers Drug Mart), and President's Choice (Loblaws) are all examples of ________ brands.

Accepted Answer

Private brands, also known as store brands, are created and sold exclusively by a specific retailer or distributor. In this case, Craftsman Tools, Life Products, and President's Choice are all private brands that are sold exclusively at Sears, Shoppers Drug Mart, and Loblaws, respectively.

Question 2

Brilliant Solutions applies LED technology to create specialized lighting systems for cellphone towers, drilling rigs, airport runways, and other specialized uses. It sells to businesses that are willing to pay for superior products that are durable, so their lighting systems remain safe, endure harsh conditions, and last for years. All of Brilliant Solutions' products are packaged in boxes prominently displaying the Brilliant Solutions brand. Why would this brand be valuable to the company?

Accepted Answer

The brand name, "Brilliant Solutions," signifies the high-quality products of the company and helps customers easily remember it. This contributes to the perceived value of the product and makes it easier for the company to differentiate itself from competitors.

Question 3

The process of using symbols to communicate the qualities of a product made by a particular producer is called

Accepted Answer

Branding is the process of creating and using symbols, such as names, logos, and slogans, to distinguish a particular product or service from those of competitors and communicate its qualities and benefits to target customers. Product differentiation refers to developing a unique product or service that sets it apart from those of competitors, while promotion, publicity, and advertising are different ways of communicating with customers to raise awareness, interest, and sales of a product or service.

Question 4

Batson Corp. marketing staff have developed a long list of possible new product ideas. In terms of the new product development process, what should they do next?

Accepted Answer

The next step in the new product development process after developing a list of possible new product ideas is screening. Screening involves evaluating the ideas to determine which ones are most promising and should be developed further. This helps the company to focus its resources on the ideas with the greatest potential for success. Business analysis, product testing, concept testing, and prototype development all come later in the new product development process.

Question 5

During this stage of the product life cycle, the promotion strategy is to emphasize brand differences and benefits. This is the ________ stage.

Accepted Answer

During the maturity stage of the product life cycle, the focus is on maintaining market share and increasing sales volume by emphasizing brand differences and benefits. This is because competition is high, and consumers are familiar with the product, so the emphasis is on convincing them to choose the brand over competitors. In the introduction stage, the focus is on creating awareness, while in the growth stage, the focus is on increasing market share. The decline stage is when sales begin to decrease, and the emphasis is on deciding whether or not to phase out the product. The development stage is when the product is still being researched and developed, and the promotion strategy would be geared towards creating awareness and building interest in the product.

Question 6

Lexington Corp. has been involved in a new product development process for several months. They have completed several preliminary tasks, the most recent of which was estimating costs and benefits for a proposed new product. What should they do next?

Accepted Answer

After estimating costs and benefits, the next logical step in the product development process is prototype development, where a tangible version of the product is created for further testing and refinement.

Question 7

Coca-Cola, Pepsi-Cola, Kleenex, and Chevrolet are examples of

Accepted Answer

Coca-Cola, Pepsi-Cola, Kleenex, and Chevrolet are all well-known brand names.

Question 8

During this stage of a product's life cycle marketers focus on making potential consumers aware of the product and its benefits. Profits are non-existent or small. This is the ________ stage.

Accepted Answer

The given description perfectly fits the Introduction stage of the product life cycle where marketers focus on creating awareness of the product among potential consumers. At this early stage, profits are usually non-existent or minimal.

Question 9

All of the following are reasons for packaging products except

Accepted Answer

The other options all provide reasons for packaging products, while option D is the opposite - it presents a negative consequence of packaging.

Question 10

Hydrogen fuel cells and solar-powered cars are in the ________ stage of their product life cycles.

Accepted Answer

Hydrogen fuel cells and solar-powered cars are still in the introduction stage of their product life cycles. While they have been around for a while, they are still not widely adopted and have yet to reach mainstream market penetration.

Question 11

Audiocassette tapes, rotary telephones, and black and white TVs are in the ________ stage of their product life cycles.

Accepted Answer

The decline stage is characterized by a decrease in demand and sales volume as the product becomes obsolete or replaced by newer technology. Audiocassette tapes, rotary telephones, and black and white TVs are all outdated technologies that have been replaced by newer, more advanced products. Therefore, they are in the decline stage of their product life cycles.

Question 12

Harley-Davidson's famous logo is emblazoned on products such as boots, eyewear, gloves, purses, lighters, and watches, and the motorcycle maker receives more than $210 million annually from fees it receives. This is an example of a ________ brand.

Accepted Answer

Harley-Davidson's use of their logo on various products through licensing agreements with other companies makes it a licensed brand.

Question 13

If a company requires consumer response to a new product under real conditions, which phase of the product development process would the company use?

Accepted Answer

Product testing and test marketing involve the introduction of the product into the market to evaluate consumer response under real conditions. This phase allows the company to learn how consumers react to the product and make necessary adjustments before the official launch. Therefore, it is the best choice for a company that requires consumer response to a new product under real conditions.

Question 14

What type of brand is Coca-Cola?

Accepted Answer

Coca-Cola is a national brand, as it is sold and recognized throughout the United States and many other countries. It is not a generic brand because it has a specific name and distinct logo. It is also not an off-the-shelf brand, which refers to products that are ready-made and available for immediate use without customization. Coca-Cola is a copyrighted brand, meaning that its name and logo are legally protected from unauthorized use. Finally, it is not a private brand, which is a brand owned and sold exclusively by a retailer.

Question 15

Which of the following is correct with regard to packaging?

Accepted Answer

Fresh fruit and structural steel do not require much packaging as they are durable in nature and do not need protection from external factors.

Question 16

How does the product life cycle mesh with the product development process?

Accepted Answer

Product commercialization marks the transition of a product from development to the market, initiating the introduction stage of the product life cycle. This is when the product is launched and introduced to the target market, starting its journey through the various stages of the life cycle.

Question 17

The new product that Bellson Corp. introduced last year is now experiencing rapidly increasing sales, and the product has begun to show a profit. But Bellson notices that two competitors have recently introduced a similar product. This is what happens in the ________ stage of a product's life cycle.

Accepted Answer

The growth stage of a product's life cycle is characterized by rapidly increasing sales and the emergence of profits, along with the entry of competitors with similar products.

Question 18

Automobiles, colour TVs, and DVD players are in the ________ stage of their product life cycle.

Accepted Answer

Automobiles, colour TVs, and DVD players are all examples of products that have been on the market for a significant amount of time and have already experienced their growth phase. They are now in the maturity stage of their product life cycle, where sales have reached their maximum level and are either stagnant or slowly declining. This is the stage where companies focus on maintaining market share and profitability through cost-cutting, product improvements, and marketing to retain customer loyalty.

Question 19

Which brands are often widely recognized by consumers because of campaigns for products produced and distributed by the manufacturer?

Accepted Answer

National brands are often widely recognized by consumers due to the campaigns for the products produced and distributed by the manufacturer. These brands have a strong presence and are positioned as leaders in the market, which helps them build brand recognition and loyalty among consumers. Private brands are owned by a retailer and are often marketed as an alternative to national brands. Licensed brands are owned by one company but have a licensing agreement with another company to manufacture and distribute products under that brand name. Launched brands and generic brands are generally not as well-known or widely recognized as national brands.

Question 20

The ________ is a natural process in which products are born, grow in stature, mature, and finally decline and die.

Accepted Answer

The phrase "products are born, grow in stature, mature, and finally decline and die" describes the concept of a product life cycle, which is best reflected in choice C. The other answer choices (A, B, D, E) do not accurately capture the stages of a product's development and decline.

Quiz 12: Understanding Marketing Principles and Developing Products

Craftsman tools (Sears) , Life products (Shoppers Drug Mart) , and President's Choice (Loblaws) are all examples of ________ brands.