Question 1

When pharmaceutical companies began advertising directly to consumers,it was an example of _____.The pharmaceutical companies realized that consumer demand influences which medications a physician will prescribe.

Accepted Answer

A pull strategy creates enough consumer demand to pull the product through the channels of distribution.

Question 2

Another name for manufacturer's brands is:

Accepted Answer

Manufacturer's brands are also known as national brands because they are owned and produced by a particular manufacturer and distributed nationally or internationally. Private brands are produced and sold exclusively by a retailer or distributor, while umbrella brands are a group of related brands marketed under one larger brand. Family brands and individual brands are subsets of manufacturer's brands.

Question 3

A food company in Massachusetts makes six different brands of dairy products.There are a number of different dairy products marketed under each brand.The company uses a _____ branding strategy.

Accepted Answer

Manufacturers use individual brands to designate a distinct target market for each product and develop a separate personality and image for each brand.

Question 4

When Hannah buys almond soap from a vendor at an arts and crafts show,and the vendor actually made the soap from scratch,the purchase was made through a(n)_____ distribution channel.

Accepted Answer

When companies sell directly to end users or consumers, they use direct distribution.

Question 5

After a television network decided to show an hour-long sci-fi show,as part of its new fall line-up,it had to develop _____ demand for the product.

Accepted Answer

Selective demand is emphasized to impress customers with the subtle advantages of a particular brand.

Question 6

Flour is a commodity just as a diamond is.But brand-name flour and a brand-name diamond are distinguishable from other,similar commodities and have more value as a result of:

Accepted Answer

The differences cannot be seen. They were created through the advertising of the brand names.

Question 7

A brand of home products are sold by a distributor under her own brand to attract younger Hispanic audiences.This is an example of:

Accepted Answer

Private labels are typically sold at lower prices in large retail chain stores.

Question 8

The basic goal of a positioning strategy is to:

Accepted Answer

The basic goal of a positioning strategy is to own a word or phrase that instantly establishes the product in the prospect's mind. This is commonly known as a unique selling proposition (USP) and helps differentiate the product from its competitors.

Question 9

The _____ stage of the product life cycle is characterized by rapid market expansion,more and more customers,and a decrease in total advertising expenditures as a percentage of total sales.

Accepted Answer

The characteristics described in the question are all indicative of the growth stage of the product life cycle. During this stage, sales and revenue increase rapidly as the product gains more widespread acceptance and adoption among customers. As a result, advertising expenditures typically decline as a percentage of sales, since the product is gaining momentum and generating its own buzz in the market.

Question 10

The difference between regular soups and organic soups is not readily visible.The organic brand differentiates itself by claiming to be 100 percent organic.This is an example of a:

Accepted Answer

Hidden differences cannot be seen.

Question 11

There are many different brands of soup and soup mixes on the shelves of most supermarkets.A manufacturer of organic soup would like to create _____ so that its customers will perceive why it is a better brand of soup than all the rest on the market.

Accepted Answer

Companies emphasize selective demand to impress customers with the subtle advantages of their particular brand.

Question 12

One brand represents an image of dairy foods that are a trusted,healthy "part of your life,whatever your style." While all dairy products are considered healthy,this brand enhances its image by giving consumers a variety of choices in products and flavors,valuable information about eating right and staying fit,and by consistently producing the best-tasting,best-quality products in its region.This describes how the brand is:

Accepted Answer

The basic goal of a positioning strategy is to establish the product in the consumer's mind.

Question 13

One company provides its resellers with elaborate point-of-purchase displays to encourage the resellers to stock and promote the distillery's products.In this example,this company is using:

Accepted Answer

Sales promotion efforts aimed at the retail trade (called a push strategy)encourages distributors and dealers to stock, display, and advertise the new products.

Question 14

In a recent television show,a police officer tried to interest his co-workers in selling vitamins.He was an independent distributor of a vitamin manufacturer.His job was to recruit other salespeople and encourage them to recruit their friends to sell the vitamins.The police officer was involved in:

Accepted Answer

Network marketing occurs when individuals act as independent distributors for a manufacturer or private-label marketer.

Question 15

In the _____ stage of the product life cycle,the marketplace becomes saturated with competing products and the number of new customers dwindles,so industry sales reach a plateau.

Accepted Answer

The saturation stage typically occurs later in the product life cycle, after the growth stage. In the maturity stage, the market becomes saturated with competition and sales growth slows down to reach a plateau. This is when the product is well-established and has a loyal customer base, but new customers are harder to attract.

Question 16

Several new editions of a book targeted at various market segments have recently been published.The majority were published by a publisher who identified the needs and wants of various groups of people and discovered that most wanted a book that more closely related to their own personal lives and interests.The publisher uncovered a(n)_____ demand.

Accepted Answer

Primary demand is consumer demand for the whole product category, not just the company's own brand.

Question 17

If you look at an organically-grown tomato and one that has been chemically-enhanced,you can easily see the difference.One is not perfectly formed and uniformly red and the other is.In terms of product differentiation,this is an example of a:

Accepted Answer

Differences between products that are readily apparent to the consumer are called perceptible differences.

Question 18

_____ is the totality of what consumers,distributors,dealers,and competitors feel and think about a brand over an extended period of time.

Accepted Answer

Brand equity is the total value that a brand adds to a product, beyond the functional benefits of the product itself. It represents the brand's reputation, how well-known it is, and the associations that consumers make with it. It is based on the perceptions and attitudes that consumers have towards the brand, and can be measured in various ways, such as market share, sales figures, or consumer surveys. Brand equity is built up over time through consistent branding, advertising, and quality product offerings.

Question 19

A brewing company markets caffeinated alcoholic beverage under the two different brands.Both brands are fast-growing and profitable.Since a distinct target market has been identified for each brand,it was essential that the brewery use a(n)_____ branding strategy with this product line.

Accepted Answer

A company uses individual branding as a part of its strategy to appeal to distinct target markets.

Question 20

A promotion was launched to position a brand as a fun line of condiments for a variety of everyday usage occasions.Its promotions showed vignettes of families,children and older Americans enjoying foods flavored with same brand-name condiments.The fact that all of these mustards have the brand is an example of:

Accepted Answer

A company might use a family brand and market different products under the same umbrella name.

Quiz 6: Market Segmentation and the Marketing Mix