Question 1

A _____ strategy concentrates on finding new markets for existing products.
A) market penetration
B) market development
C) product development
D) product diversification

Accepted Answer

Market development strategy concentrates on finding new markets for existing products, whereas market penetration strategy focuses on increasing sales in existing markets. Product development strategy involves creating new products for existing markets, and product diversification strategy involves creating new products for new markets.

Question 2

More than 90 percent of cereal is consumed at breakfast,but ads for Kellogg's Cracklin' Oat Bran say that it tastes like oatmeal cookies and makes "a great snack anytime." Kellogg's is implementing a strategy of _____ with this product.
A) market penetration
B) market development
C) product development
D) product diversification

Accepted Answer

The answer of More than 90 percent of cereal is...

Question 3

The term cannibalization refers to the:
A) difference in expected and actual outcome from the implementation of a market penetration strategy.
B) shrinking of a firm's market share due to competition from rivals.
C) decline in the brand loyalty for a product due to changing economic conditions.
D) decline in the sales of an existing product due to competition from a new product by the same manufacturer.

Accepted Answer

Cannibalization refers to the decline in sales of an existing product due to competition from a new product by the same manufacturer. This occurs when the new product takes away sales from the existing product, essentially "eating away" at its market share.

Question 4

The term "product positioning" refers to:
A) a low cost market entry strategy in which two or more firms represent one another's complementary yet non-competing products in the markets.
B) the process of developing entirely new products for new markets.
C) consumers' perceptions of a product's attributes, uses, quality, as well as advantages and disadvantages relative to competing brands.
D) the process of developing a trade dress for a new product.

Accepted Answer

Product positioning refers to how consumers perceive a product in terms of its attributes, uses, quality, advantages, and disadvantages relative to other competing brands. It is a strategic marketing process that helps companies create a unique space in the minds of their target customers for their products or services. Option A is incorrect as it refers to co-branding. Option B is incorrect as it refers to new product development. Option D is incorrect as it refers to trade dress development.

Question 5

Apex Corp.has been manufacturing furniture for past several years.Now in order to grow its business,the company has decided to manufacture curtains and bed sheets.The strategy being used by the company to target new markets is referred to as a _____.
A) product association strategy
B) market simulation strategy
C) market engagement strategy
D) product diversification strategy

Accepted Answer

The company's strategy of entering into the market of manufacturing curtains and bed sheets is known as product diversification strategy. It involves expanding the product line of the company by adding new products in the existing market or entering into new markets with new products.

Question 6

The strategy of developing individual offerings to appeal to different market segments while remaining closely related to the existing product line is called _____.
A) line engagement
B) line extension
C) brand extension
D) brand engagement

Accepted Answer

The strategy of developing individual offerings to appeal to different market segments while remaining closely related to the existing product line is called line extension.

Question 7

A company introduced a new low calorie version of one of its popular cold drinks.As a result,the sales of the original cold drink started decreasing because consumers preferred its low calorie version.This situation is known as:
A) product encroachment.
B) product centralization.
C) cannibalization.
D) polarization.

Accepted Answer

This situation is known as cannibalization, where sales of an existing product are reduced due to the introduction of a new product that satisfies a similar need or want. In this case, the new low-calorie version of the drink is cannibalizing sales of the original drink.

Question 8

Dayer's,a popular ice cream brand,added new flavors to their existing line of ice creams to attract kids.This is an example of _____.
A) brand extension
B) line extension
C) brand engagement
D) line engagement

Accepted Answer

Dayer's is adding new flavors to their existing line of ice creams, which is an example of line extension. Brand extension would be more significant, involving a new range of products or services under the same brand name. Brand or line engagement are not relevant terms in this context.

Question 9

At the _____ stage in the consumer adoption process,buyers consider the likely benefits of the product.
A) awareness
B) trial
C) interest
D) evaluation

Accepted Answer

At the evaluation stage, buyers consider the likely benefits of the product before making a purchase decision. They evaluate the product's features, benefits, and value proposition to determine if they want to buy it. The awareness stage is when buyers first become aware of the product, the interest stage is when they develop an interest in the product, and the trial stage is when they try the product to see if they like it.

Question 10

The _____ strategy seeks to increase sales of existing products in existing markets.
A) product development
B) market innovation
C) product diversification
D) market penetration

Accepted Answer

Market penetration strategy seeks to increase sales of existing products in existing markets by increasing market share. It can be achieved through various measures such as offering promotional deals or discounts to attract more customers, improving distribution channels, and enhancing brand image.

Question 11

Which of the following terms refers to a series of stages consumers go through in learning about a new product,trying it,and deciding whether to purchase it again?
A) Product life cycle
B) Adoption process
C) Product development process
D) Diffusion process

Accepted Answer

The adoption process refers to the series of stages that consumers go through in learning about a new product, trying it, and deciding whether to purchase it again. The product life cycle refers to the stages a product goes through from introduction to decline. The product development process refers to the stages a company goes through in creating a new product. The diffusion process refers to the spread of a new product through a population over time.

Question 12

Annie's Inc.,that produces vinegar for cooking purposes,identified new uses for its product and started promoting it as a fabric softener and a cleansing product.The company started selling the same product in different packages modified for different types of uses.This strategy used by Annie's to increase the sales of its product is an example of a _____ strategy.
A) brand extension
B) line engagement
C) market penetration
D) product diversification

Accepted Answer

Market penetration strategy involves increasing sales of existing products in existing markets, which Annie's Inc. is doing by promoting new uses for its vinegar.

Question 13

The strategy of _____ refers to the introduction of new products into identifiable or established markets.
A) market penetration
B) product positioning
C) market diversification
D) product development

Accepted Answer

The strategy of product development is specifically focused on introducing new products into identifiable or established markets. Market penetration refers to selling more of the same product in an existing market, product positioning refers to the perception of the product in the minds of consumers, and market diversification refers to entering new markets with new products.

Question 14

Dali stationery and office supplies is a market leader in China.The company wants to expand its business and is setting up retail chains in other Asian countries.Which of the following new-product development strategies is being used by the company in the above scenario?
A) Market development strategy
B) Market penetration strategy
C) Product development strategy
D) Product diversification strategy

Accepted Answer

The company is using the market development strategy as it plans to expand its business in other Asian countries. This strategy involves taking an existing product and expanding its market by identifying new market segments or geographies to sell the product. In this case, the company is taking its existing stationery and office supplies business and expanding into new markets in other Asian countries.

Question 15

Firms may also choose to introduce new products into markets in which they have already established positions to try to increase overall market share.These new offerings are called _____ brands.
A) universal
B) flanker
C) conjoint
D) congruous

Accepted Answer

Flanker brands are new products introduced into a market where a company already has an established position, with the goal of increasing overall market share. Universal brands refer to a company's consistent branding across all markets and products, conjoint brands refer to partnerships between companies, and congruous brands refer to products that complement each other within a brand portfolio.

Question 16

Individuals who purchase new products almost as soon as these products reach the market are called _____.
A) late adopters
B) laggards
C) consumer innovators
D) hesitant buyers

Accepted Answer

Individuals who purchase new products almost as soon as these products reach the market are called consumer innovators. They are the first to adopt new products and technologies, often serving as opinion leaders for others. Late adopters are those who wait until a product has been on the market for a while before making a purchase, while laggards are those who are slow or resistant to adopting new products. Hesitant buyers are those who are unsure or cautious about making a purchase, and may need more information or encouragement before doing so.

Question 17

A _____ strategy focuses on developing entirely new products for new markets.
A) market penetration
B) market development
C) product development
D) product diversification

Accepted Answer

Product diversification involves developing new products to sell in new markets. This is different from market penetration (selling existing products in existing markets), market development (selling existing products in new markets), and product development (creating new products for existing markets).

Question 18

An apparel manufacturer decides to create a line of t-shirts depicting the most popular soft drinks on the market.The images would include Coke,Pepsi,Sprite,Mountain Dew,and Dr.Pepper.The apparel manufacturer will have to complete which of the following practices before creating this line of t-shirts?
A) Line extension
B) Brand extension
C) Brand licensing
D) Brand engagement

Accepted Answer

The answer of An apparel manufacturer decides to create a...

Question 19

At the _____ stage in the consumer adoption process,potential buyers begin to seek information about the product.
A) trial
B) evaluation
C) interest
D) adoption

Accepted Answer

At the interest stage, potential buyers are curious about the product and seek information about it. The trial stage comes after they have had a chance to use the product, the evaluation stage is when they weigh the product's advantages and disadvantages, and adoption is the final stage when they decide to make a purchase and continue using the product.

Question 20

Responding to moviegoers' recently revived interest in the 3D format,Panasonic introduced the world's first 3D home entertainment system.This strategy used by Panasonic is an example of a _____.
A) market engagement strategy
B) market simulation strategy
C) product development strategy
D) product association strategy

Accepted Answer

Panasonic's introduction of the world's first 3D home entertainment system is an example of a product development strategy, as they are creating a new product to meet the demand of customers interested in 3D technology.

Quiz 13: Developing and Managing Brand and Product Categories

A _____ strategy concentrates on finding new markets for existing products.

More than 90 percent of cereal is consumed at breakfast,but ads for Kellogg's Cracklin' Oat Bran say that it tastes like oatmeal cookies and makes "a great snack anytime." Kellogg's is implementing a strategy of _____ with this product.

The term cannibalization refers to the:

The term "product positioning" refers to:

Apex Corp.has been manufacturing furniture for past several years.Now in order to grow its business,the company has decided to manufacture curtains and bed sheets.The strategy being used by the company to target new markets is referred to as a _____.

The strategy of developing individual offerings to appeal to different market segments while remaining closely related to the existing product line is called _____.

A company introduced a new low calorie version of one of its popular cold drinks.As a result,the sales of the original cold drink started decreasing because consumers preferred its low calorie version.This situation is known as:

Dayer's,a popular ice cream brand,added new flavors to their existing line of ice creams to attract kids.This is an example of _____.

At the _____ stage in the consumer adoption process,buyers consider the likely benefits of the product.

The _____ strategy seeks to increase sales of existing products in existing markets.

Which of the following terms refers to a series of stages consumers go through in learning about a new product,trying it,and deciding whether to purchase it again?

The strategy of _____ refers to the introduction of new products into identifiable or established markets.

Dali stationery and office supplies is a market leader in China.The company wants to expand its business and is setting up retail chains in other Asian countries.Which of the following new-product development strategies is being used by the company in the above scenario?

Firms may also choose to introduce new products into markets in which they have already established positions to try to increase overall market share.These new offerings are called _____ brands.

Individuals who purchase new products almost as soon as these products reach the market are called _____.

A _____ strategy focuses on developing entirely new products for new markets.

At the _____ stage in the consumer adoption process,potential buyers begin to seek information about the product.

Responding to moviegoers' recently revived interest in the 3D format,Panasonic introduced the world's first 3D home entertainment system.This strategy used by Panasonic is an example of a _____.