Question 1

The GPS SmartSole is a discreet wearable insole that fits in the shoe and provides GPS tracking of the wearer.This product is being marketed as an inexpensive solution for caregivers whose charges are prone to wandering,like those with Alzheimer's disease or autism.When the insoles were first made available to consumers,what was the marketing objective for the company at that early stage of the product life cycle?

Accepted Answer

The introduction stage of the product life cycle occurs when a product is introduced to its intended target market.The marketing objective for a company at the introduction stage is to create consumer awareness and stimulate trial-the initial purchase of a product by a consumer.

Question 2

As more competitors launch their own products and the product progresses along its life cycle,company attention is focused on creating ________ demand,or the preference for a specific brand.

Accepted Answer

Key term definition-selective demand.

Question 3

The desire for a product class rather than for a specific brand is called ________ demand.

Accepted Answer

Key term definition-primary demand.

Question 4

During the introduction stage of the product life cycle,a(n)________ pricing strategy may be used.This pricing strategy charges a high initial price to recoup the costs of product development.

Accepted Answer

Key term definition-skimming pricing.

Question 5

When the Egg Farmers of Canada implemented its "Get Cracking" advertising campaign,the organization was trying to stimulate ________ demand.

Accepted Answer

Primary demand is the desire for the product class rather than for a specific brand.When expenditures are made to increase desire for a product class,such as eggs,this is an example of stimulating primary demand.

Question 6

3M is a master of the ________ pricing strategy,which uses a high initial price for a new product.

Accepted Answer

Skimming pricing strategy charges a high price to recoup the costs of product development as well as capitalize on the price insensitivity of early buyers.3M is a master of skimming pricing strategy.

Question 7

The preference for a specific brand is called ________ demand.

Accepted Answer

Key term definition-selective demand.

Question 8

The two most common pricing alternatives for products in the introduction stage of the product life cycle are

Accepted Answer

During the introduction,pricing can be either high or low.Skimming pricing (high)allows the company to recover costs of development and capitalize on pricing insensitivity of early buyers.Penetration pricing (low)allows a firm to build unit volume.

Question 9

Almost two decades ago,Survivor premiered as a reality TV show during the summer season when TV ratings are normally low and TV viewing options consisted primarily of reruns.The marketing goals for the first show included making television viewers aware of its existence and generating enough excitement about the show so that millions of viewers would watch the first episode.At the airing of the first show,Survivor was in what stage of its product life cycle?

Accepted Answer

The introduction stage of the product life cycle occurs when a product is introduced to its intended target market.The marketing objective for the company at this stage is to create consumer awareness and stimulate trial-in this case,getting people to watch the first show.

Question 10

Promotional expenditures at the introduction stage of the product life cycle are best spent on

Accepted Answer

Advertising and promotion expenditures in the introduction stage are often made to stimulate primary demand,the desire for the product class rather than for a specific brand since there are few competitors with the same product.

Question 11

The marketing objective for a product in the ________ stage of the product life cycle is to create consumer awareness and stimulate trial.

Accepted Answer

The marketing objective for a company at the introduction stage is to create consumer awareness and stimulate trial-the initial purchase of a product by a consumer.

Question 12

Cotton Incorporated is funded by cotton growers in the United States.It developed the "Cotton: The Fabric of Our Lives" advertising campaign as part of its mission "to ensure that cotton remains the first choice among consumers in apparel and home products." Because Cotton Incorporated promotes all cotton producers,it is stimulating ________ demand.

Accepted Answer

Primary demand is the desire for the product class rather than for a specific brand.When expenditures are made to increase the desire for a product class such as cotton goods,it is an example of stimulating primary demand.

Question 13

Primary demand is a desire for the ________ rather than for a ________;it might be the focus of marketing when there are few competitors with the same product.

Accepted Answer

Advertising and promotion expenditure in the introduction stage are often made to stimulate primary demand,the desire for a product class rather than for a specific brand,when there are few competitors with the same product,like at the introduction stage.

Question 14

A company may choose a skimming strategy during the introduction stage of its product to help recover costs of development and to

Accepted Answer

A high initial price in the introduction stage may be used as part of a skimming strategy to help the company recover the costs of development as well as capitalize on the price insensitivity of early buyers.

Question 15

During the introduction stage of the product life cycle,the place (distribution)element of the marketing mix is highly involved with

Accepted Answer

Gaining distribution outlets for the product is important but often challenging because channel intermediaries-wholesalers and retailers-may be hesitant to carry a new product.

Question 16

The initial purchase of a product by a consumer is referred to as a(n)

Accepted Answer

Key term definition-trial.

Question 17

The lack of profit in the introductory stage of the product life cycle is very often the result of

Accepted Answer

The lack of profit is often a result of large investment costs in product development.

Question 18

Marketing for a product in the introduction stage of its product life cycle should focus primarily on gaining awareness and which other marketing objective?

Accepted Answer

The marketing objective for a product at the introduction stage is to promote consumer awareness and stimulate trial-the initial purchase of a product by consumer.

Question 19

Northland Juices,a division of New York-based Apple & Eve,competes with Ocean Spray in the cranberry juice category.To be successful,Northland must create ________ demand so it will be selected over competitors.

Accepted Answer

Selective demand is the preference for a specific brand.Northland is interested in creating awareness and preference for its brand,not its product class (cranberry juice).

Question 20

Gillette budgeted $200 million in advertising to introduce the Fusion razor to male shavers.Such expenditures are often made to stimulate ________,the desire for the product class,rather than for a specific brand,when there are few competitors with the same product.

Accepted Answer

Advertising and promotion expenditure in the introduction stage are often made to stimulate primary demand,the desire for a product class rather than for a specific brand,since there are few competitors with the same product.

Quiz 11: Managing Successful Products, services, and Brands