Exam 2 Review: CH. 10

Question 1

Define product life cycle

Answer 1

The process by which products emerge, grow, stablise and decline over time.

Question 2

What are the stages of the product life cycle ?

Answer 2

Introduction, Growth, Maturity, Decline

Question 3

Introduction

Answer 3

very risky, very pricey, often unprofitable. only highly innovative customers. need to have deep pockets.

Question 4

Growth

Answer 4

early adapters. profits peak, trying to gain new customers, increase product differentiation

Question 5

Maturity

Answer 5

Industry/product sales slow, Fewer new buyers, Profit declines, Product differentiation, Fewer competitors

Question 6

Decline

Answer 6

sales & profits both decline. virtually no new customers. often due to a dominant replacement technology

Question 7

Diffusion of Innovations

Answer 7

Innovators (2.5%)
Early adopters (13.5%)
Early majority (34%)
Late majority (34%)
Laggards (16%)

Question 8

Product Modification

Answer 8

involves altering one or more of a product’s characteristics, such as its quality, performance, or appearance, to increase the product’s value and sales

Question 9

Market Modification

Answer 9

strategies allow a company to try to find new customers, increase a products use among existing customers, or create new use

Question 10

Product Repositioning

Answer 10

Changes place that the product occupies in consumer’s mind

i.e…. new market, catch rising trend, trading up/down, downsizing

Question 11

Branding

Answer 11

a marketable decision when an org. uses a name, phrase, design, or symbols to identify its products

Question 12

Brand Name

Answer 12

any word or device (shape/sound/color) to distinguish goods or services

Question 13

Trade Name

Answer 13

a commercial name under which a company does business (i.e. Coca-Cola)

Question 14

Trademark

Answer 14

identifies that a firm has legally registered its brand name for exclusive use

Question 15

Brand Personality

Answer 15

is a set of human characteristics associated w/ brand

Question 16

Brand Equity

Answer 16

the added value a brand name gives to a product beyond the functional benefits.

Question 17

Creating Brand Equity

Answer 17

1. develop positive awareness
2. establish brand’s meaning
3. elicit the proper response to brand’s meaning
4. Create intense brand loyalty with consumers.

Question 18

Valuing Brand Equity

Answer 18

1. provides financial advantage

2. Brands can be bought and sold

Question 19

Brand Licensing

Answer 19

a contractual agreement where a company allows their brand name to be used.

Question 20

Multiproduct branding

Answer 20

a strat in which a company uses one name for all of its products

Question 21

Multibranding

Answer 21

giving each product a distinct name (fighting brands)

Question 22

Private Branding

Answer 22

(AKA-reseller branding)– manufacturer produces products but sells them under the brand name of a retailer.

Question 23

Mixed Branding

Answer 23

markets products under its own name and that of a reseller

Question 24

Packaging

Answer 24

any container in which it is offered for sale

Question 25

Labeling

Answer 25

integral part of the package and identifies the brand or produt

Question 26

Packaging and Labeling create what?

Answer 26

customer value & competitive advantage thru benefits: 1. communication 2. Functional 3. Perceptual

Question 27

what IS the 7 P's of service?

Answer 27

it is an expanded marketing mix concept for services.

Question 28

What ARE the 7 P's?

Answer 28

Product, Price, Promotion, place(distribution), people, physical environment, & process