Test 3

Question 1

What would an appropriate marketing strategy look like in the growth stage of the product lifestyle

Answer 1

With the growth of competition

Encourage brand loyalty

Question 2

In the maturity stage?

Answer 2

Communicate with the remainder advertising (late majority)

Price to maintain market share

Question 3

What typically happens to price and costs over the entire product life cycle?

Answer 3

Both decrease

Question 4

What alternative below describes the key categories of the classic model of communication in their correct order?

Answer 4

Sender, message, medium, receiver (steak made medium rare)

Question 5

Which alternative below was not a major trend anticipated by Reebok?

Answer 5

The birth of the running culture

Question 6

All of the following were important to Adidas marketing strategy except?

Answer 6

Their relationship with athletes’ foot

It is a tax haven

Question 7

All of the following were important to Nike’s marketing strategy except?

Answer 7

Knight decided to emphasize advertising then endorsement contracts

Question 8

All of the following are categories of the means-end chain except

Answer 8

Product Lifestyle (life cycle?)

Question 9

The relevance of the means-end for marketers is that

Answer 9

It helps them transform low involvement ones

Question 10

What are 3 types of “positive benefits” of product use

Answer 10

Functional, psychological and social

Question 11

When the customers are not sensitive to changes in price we call this

Answer 11

Inelastic demand (necessities)

Question 12

What was the key to foot lockers marketing strategy

Answer 12

Exclusivity of the product it brings

Question 13

It is said that Nike was able to research more customers faster than Adidas in America creating significant competitive advantage. This advantage was created throughout Nikes successful usage of

Answer 13

Distribution channel (to reach rural America too)

Question 14

You like apples. The price goes from $.49 per pound to $.99 per pound and you decide to eat pears instead. Assuming their price remains the same your demand for apples is considered to be

Answer 14

Elastic

Question 15

The process by which the use of a new product spreads throughout the population

Answer 15

Diffusion of innovation

Question 16

Anything that interferes with effective communication

Answer 16

Noise

Question 17

The difference between the price the firm charges for a product and the variable cost

Answer 17

Contribution per unit (margin)

Question 18

Why is calculating the break-even point important for marketing price

Answer 18

Helps evaluate whether or not a new product will pay off in time

And helps to focus attention on ways to reduce fixed and variable costs

Question 19

What can be learned from the Airwalk story

Answer 19

Don’t lose your core consumers

Fashion is often coming from the top

And the diffusion of innovation is related to the product life cycle

Question 20

A value in the means-end chain can be defined as?

Answer 20

An enduring belief that transcends specific situation

Question 21

What key role did the ad agency “lambesis” play in growing Airwalk?

Answer 21

Served in the capacity of the early adopter

Question 22

In the decline phase of the product life cycle, what is a typical strategy

Answer 22

Scale number of variations

Question 23

Why are early adopters so important in the diffusion process

Answer 23

Those customers translate the actions of the innovation into something that is more understandable to the mainstream

Question 24

At which stage in the product life cycle do competitors enter the market creating new variation of the product

Answer 24

Growth