Question 1

Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more.Mercedes implemented a/n ________.
A)upward line stretch
B)value stretch
C)downward line stretch
D)product line contraction strategy
E)filling-out strategy

Accepted Answer

Mercedes implemented a downward line stretch by introducing a lower-priced model (C-Class) without affecting the sales of its higher-priced models.

Question 2

In the growth stage of the product life cycle,the marketing goal is to ________.
A)decrease sales
B)reach peak sales levels and begin to plateau
C)profitably phase out the product
D)convince consumers that their brand is superior to competitors
E)ignore increased competition

Accepted Answer

In the growth stage of the product life cycle, competition increases and the focus shifts to convincing consumers that their brand is superior to competitors. The goal is to maximize market share and profits during this stage.

Question 3

Explain the stages in the adoption of a new product and the appropriate marketing strategies at each stage.

Accepted Answer

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Question 4

Explain cannibalisation.How does a line extension strategy increase the risk of cannibalisation?

Accepted Answer

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Question 5

A firm's ________ is the entire range of products the company offers for sale.
A)branding strategy
B)product mix
C)positioning strategy
D)promotional mix
E)product line

Accepted Answer

Product mix refers to the entire range of products that a company offers for sale, including all of its product lines. A company's product mix can include multiple product lines, each of which includes multiple products. A company's branding strategy and positioning strategy are components of its marketing strategy and may influence its product mix decisions, but they do not define the product mix itself. The promotional mix refers to the various marketing communication tools that a company uses to promote its products, and the product line refers to a group of related products within a company's product mix.

Question 6

Whenever a product line or a product family is extended,there is a risk of ________,which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.
A)cannibalisation
B)cross-docking
C)disintermediation
D)pyramiding
E)a piggyback exchange

Accepted Answer

Cannibalization is the risk of sales decline for an existing brand or product as customers switch to a newer one in the same product line or family. This can lead to a loss of market share and revenue for the firm.

Question 7

Kitchen dishcloths are often difficult to rinse clean and typically dry slowly.3M has developed a disposable ScotchBrite Microfiber Kitchen Cloth that rinses easily and dries quickly.Because this is a brand new product to the market,it can be said to be in the ________ stage of its product life cycle.
A)extension
B)maturity
C)growth
D)expansion
E)introduction

Accepted Answer

The description of the product being brand new to the market indicates that it is in the introduction stage of its product life cycle.

Question 8

What category of consumer adopters would purchase a product when the product is no longer considered new or different? What category of consumer adopters would purchase a product when the product is no longer considered to be risky? Explain your answer.

Accepted Answer

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Question 9

At what stage of the consumer adoption of a new product will a potential customer drop out if they do not feel the new product will provide adequate benefits?

Accepted Answer

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Question 10

Explain the factors that affect the rate of adoption and the strategies marketers can adopt.

Accepted Answer

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Question 11

Procter & Gamble make several different kinds of shampoo,but it did not have a dandruff shampoo designed specially for women until it added Pro-V anti-dandruff shampoo.This is an example of product extension through a/n ________.
A)downward line stretch
B)filling-out strategy
C)product line contraction
D)value stretch
E)upward line stretch

Accepted Answer

The introduction of Pro-V anti-dandruff shampoo for women by Procter & Gamble is an example of a filling-out strategy, where a company adds new products to an existing product line to fill gaps and better meet consumer needs.

Question 12

A company such as Procter & Gamble that offers a variety of different cleaners,detergents,and shampoos to appeal to a variety of target markets is using a/n ________.
A)production mix strategy
B)full line strategy
C)undifferentiated strategy
D)limited-line strategy
E)marketing mix orientation

Accepted Answer

Procter & Gamble is using a full line strategy by offering a variety of products to appeal to different target markets. This strategy is designed to capture a larger share of the market by providing options for different consumer preferences and needs.

Question 13

Samsung recognised earlier than their competitors that colour screens on cell phones were going to be in high demand by customers and created one of the first offerings.This is an example of how different organisations adopt innovations.

Accepted Answer

The statement mentions that Samsung recognised the demand for colour screens on cell phones before their competitors, indicating that they adopted the innovation earlier. Therefore, the statement is true.

Question 14

Why are marketers interested in the life cycle of products?
A)To use it to explain how product features change over the life of the product
B)To support only the product orientation stage of the product
C)To encourage cannibalisation
D)To control entrance in international markets
E)To implement demographic segmentation

Accepted Answer

Marketers are interested in the life cycle of products to use it to explain how product features change over the life of the product. The product life cycle explains the different stages a product goes through from its introduction to the market until its eventual decline. Each stage of the life cycle requires different marketing strategies and tactics, and understanding how product features change over time is essential to creating a successful marketing plan for the product.

Question 15

Discuss how a marketer could affect the rate of adoption.

Accepted Answer

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Question 16

Consumer products manufacturer Unilever plans to cut its number of product lines from 1,600 different products to 400 products so that it can concentrate on increasing its efficiency.This is an example of a/n ________.
A)value stretch
B)upward line stretch
C)product line contraction
D)downward line stretch
E)filling-out strategy

Accepted Answer

Unilever's plan to cut its number of product lines from 1,600 different products to 400 products is an example of product line contraction, which involves reducing the number of products in a company's portfolio to streamline operations and increase efficiency.

Question 17

Microsoft launched a massive $500 million marketing campaign when it introduced the Xbox,promoting the new product through in-store merchandising,retailer incentives,events and sponsorships,in addition to traditional advertising.Explain Microsoft's actions using the stages in the adoption of a new product.

Accepted Answer

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Question 18

A ________ is a firm's total product offering designed to satisfy a single need or desire of a group of target customers.
A)market segmentation strategy
B)positioning strategy
C)branding strategy
D)product line
E)product mix

Accepted Answer

A product line is a group of related products offered by a company. It is designed to satisfy a single need or desire of a group of target customers. Product lines can also be organized into a hierarchy, where smaller groups of products are part of a larger product category.

Question 19

Product objectives need to be measurable,unambiguous,achievable and have a specific time frame.

Accepted Answer

Product objectives must be measurable, clearly defined, achievable, and have a specific time frame to be effective in guiding a team towards success.

Question 20

What are two reasons an organisation would adopt business-to-business products?

Accepted Answer

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Quiz 8: Creating and Managing Products

Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more.Mercedes implemented a/n ________.

In the growth stage of the product life cycle,the marketing goal is to ________.

Explain the stages in the adoption of a new product and the appropriate marketing strategies at each stage.

Explain cannibalisation.How does a line extension strategy increase the risk of cannibalisation?

A firm's ________ is the entire range of products the company offers for sale.

Whenever a product line or a product family is extended,there is a risk of ________,which occurs when sales of an existing brand decline as the firm's current customers switch to the new product.

What category of consumer adopters would purchase a product when the product is no longer considered new or different? What category of consumer adopters would purchase a product when the product is no longer considered to be risky? Explain your answer.

At what stage of the consumer adoption of a new product will a potential customer drop out if they do not feel the new product will provide adequate benefits?

Explain the factors that affect the rate of adoption and the strategies marketers can adopt.

Procter & Gamble make several different kinds of shampoo,but it did not have a dandruff shampoo designed specially for women until it added Pro-V anti-dandruff shampoo.This is an example of product extension through a/n ________.

A company such as Procter & Gamble that offers a variety of different cleaners,detergents,and shampoos to appeal to a variety of target markets is using a/n ________.

Samsung recognised earlier than their competitors that colour screens on cell phones were going to be in high demand by customers and created one of the first offerings.This is an example of how different organisations adopt innovations.

Why are marketers interested in the life cycle of products?

Discuss how a marketer could affect the rate of adoption.

Consumer products manufacturer Unilever plans to cut its number of product lines from 1,600 different products to 400 products so that it can concentrate on increasing its efficiency.This is an example of a/n ________.

A ________ is a firm's total product offering designed to satisfy a single need or desire of a group of target customers.

Product objectives need to be measurable,unambiguous,achievable and have a specific time frame.

What are two reasons an organisation would adopt business-to-business products?