Chapter 11 Final

Question 1

What are the 4 steps in the product lifecycle?

Answer 1

introduction, growth, maturity, decline

Question 2

What is the objective for the introduction stage? what are its defining features?

Answer 2

create customer awareness about a product. products are being introduced into the market

Question 3

what is the objective for the growth stage? what are its defining features?

Answer 3

differentiate the brand from its customers rapid increase in product sales

Question 4

what is the objective of the maturity stage? what are its defining features?

Answer 4

maintain brand loyalty and hold market share. slow product sales

Question 5

what is the objective of the decline stage? what are its defining features?

Answer 5

reduce product support through deletion or harvesting. sales drop and prices decrease.

Question 6

what are 3 important aspects of the product life cycle?

Answer 6

length of cycle, shape of cycle, rate of customer adoption

Question 7

what are the 5 types of product adopters on a normal z curve?

Answer 7

1. innovators. 2. early adopters. 3. early majority. 4. late majority. 5. laggards

Question 8

what are innovators?

Answer 8

people who are adventurous and do a lot of research on products

Question 9

what are early adopters?

Answer 9

people who are leaders in social settings, adopts a new innovation before most of the population

Question 10

what are early majorities?

Answer 10

the first sizable segment of a population to adopt the innovation

Question 11

what are late majorities?

Answer 11

people who are skeptical about a product and have below average social status

Question 12

who are laggards?

Answer 12

people who have a fear of debt and their family and friends are their source of information

Question 13

what is product modification?

Answer 13

altering the product characteristics or appearance

Question 14

what is product bundling?

Answer 14

the sale of 2 or more products in one bundle package

Question 15

what is market modification?

Answer 15

involves strategies in which a company tries to find new customers or increase advertising to current customers

Question 16

what is branding?

Answer 16

marketing decision to use a word or look to distinguish one company from its competitors

Question 17

what is a brand name?

Answer 17

word or look used to distinguish a good or service

Question 18

what is brand personality?

Answer 18

set of human characteristics associated with a brand name

Question 19

what are the factors that contribute to brand equity?

Answer 19

1. positive brand awareness
2. establishing a brand meaning for customers
3. responding to the brand meaning accordingly
4. ultimately create brand loyalty

Question 20

what is a multiproduct branding strategy?

Answer 20

a strategy in which one brand makes many products (ex: apple makes iphone and ipad)

Question 21

what is a multibranding strategy?

Answer 21

a strategy in which one company has products in the same category but each one has a different branding strategy associated with it (ex: one company owns both Lexus and Kia)

Question 22

what is a private branding strategy?

Answer 22

a private branding strategy means that a customer cannot find the brand anywhere else besides sold by the company that owns the brand (ex: kirkland is only sold at costco)

Question 23

what is a mixed branding strategy?

Answer 23

a strategy in which one company uses multiple brand names to market the same type of product to different customers (Ex: michelin makes michelin tires and sears tires)

Question 24

what are 3 benefits to packaging and labeling products?

Answer 24

1. communication benefits
2. functional benefits
3. perceptual benefits

Question 25

what are 4 challenges with packaging and labeling products?

Answer 25

1. connecting with customers
2. environmental issues
3. security issues
4. shelf life concerns

Question 26

what is a warranty?

Answer 26

the liability of the manufacturer for product deficiencies.