Chapter 10 mkt part II Flashcards
The emphasis of a marketing strategy for a discontinuous innovation would most likely be to
A) generate awareness among consumers.
B) advertise benefits to consumers that stress points of differentiation.
C) educate consumers about new consumption patterns through personal selling.
D) obtain widespread distribution in multiple channels.
E) stress price differentials from competitors’ products.
C
The Federal Trade Commission (FTC) advises that a product should be labeled as new only
A) for a period of one year after it enters widespread distribution.
B) if it is functionally different from a competitor’s product.
C) until an improved version of the same product is produced.
D) for a period of six months after it enters regular distribution.
E) for a period of 17 years at which time patent rights are returned to the public domain.
D) for a period of six months after it enters regular distribution.
From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the lowest level of risk? A) a radical invention B) a brand extension C) a product line extension D) a jump in innovation E) a product diversification
C) product line extension
From an organization's perspective regarding its new products and innovations, which of the following new-product strategies has the highest level of risk? A) a radical invention B) a brand extension C) a product line extension D) a jump in innovation E) a product deletion
A) radical invention
medium level of risk
A) a radical invention B) a brand extension C) a product line extension D) a jump in innovation E) a product deletion
B ) a brand extension
Mr. Clean is an antibacterial cleaning liquid for home use. If Procter & Gamble (P&G), the manufacturer of Mr. Clean, added Mr. Clean Magic Eraser Bath Scrubber to the Mr. Clean product line, it would be seen by P&G as
A) a discontinuous innovation.
B) a new product from the company’s perspective because it is a product line extension.
C) a high-risk product mix extension because it is new to the market.
D) new by the Federal Trade Commission for the usual one-year period.
E) not a new product because it does not represent a different SKU.
B) a new product from the company’s perspective because it is a product line extension.
A new-product or service protocol is
A) the standardized procedures a firm follows for the inception, design, manufacturing, promotion, and distribution of a new product.
B) a formalized statement of intent regarding what will be sold, to whom it will be sold, and by whom it will be sold.
C) maintaining compliance with all licensing, manufacturing, and distribution standards established by the U.S. Federal Trade Commission (FTC).
D) a statement that identifies a well-defined target market, specific customers’ needs, wants, and preferences, and what the product or service will be and do to satisfy consumers.
E) the raw unwritten ideas to produce a single commercially successful new product.
D)
Before a new product or service is developed, a firm should have a precise protocol, a statement that includes which of these?
A) a clear plan for product distribution
B) an analysis of potential competitors’ products
C) a precise budget of how much can be spent for the marketing program
D) a well-defined target market
E) clear financial goals and expectations
D
Less than \_\_\_\_\_\_\_\_ of new consumer packaged goods (CPG) exceed first-year sales of $50 million-the benchmark of a successful CPG launch. A) 3 percent B) 10 percent C) 17 percent D) 28 percent E) 35 percent
A) 3 percent
When General Mills introduced Fingos, a corn chip-sized sweetened cereal flake, it assumed that its customers would normally snack on them dry like a potato chip. Unfortunately, consumers did not switch from munching on popcorn and potato chips. The primary reason for the failure of Fingos was
A) an insignificant point of difference-consumers wouldn’t switch from competing snacks.
B) too little market attractiveness-the growth in the snacks market is declining.
C) poor execution of the marketing mix-General Mills did not offer free samples at grocery stores.
D) poor product quality-the chips were not the same size.
E) incomplete market and product protocol-the brand name Fingos did not get consumers excited.
A) an insignificant point of difference
One of the eight primary marketing-related reasons for new-product failure is_________.
a. not listening to the voice of the engineer
b. too much advertising or too aggressive a tone for it
c. failure to anticipate competitors actions
d. no economical access to buyers
d. no economical access to buyers
Kimberly-Clark developed its Avert Virucidal tissues that contained vitamin C derivatives, which were scientifically designed to kill cold and flu germs when users sneezed, coughed, or blew their noses into them. Unfortunately, people didn’t believe the claim and were frightened by the “cidal” in the brand name. The reason for this product failure was
A) an insignificant point of difference.
B) too little market attractiveness.
C) poor execution of the marketing mix.
D) poor product quality.
E) incomplete market and product protocol.
E) incomplete market and product protocol.
Thirsty Dog! is a zesty beef-flavored, vitamin-enriched, mineral-loaded, lightly carbonated bottled water for dogs. It might have been a great product, but competition over shelf space was fierce and the product could not generate enough sales per square foot for retailers. The makers of this product had
A) poor product quality.
B) no economical access to buyers.
C) an insignificant point of difference.
D) incomplete market and product protocol.
E) poor execution of the marketing mix.
B) no economical access to buyers.
