Chapter 9 Product II: Product Strategy, Branding, and Product Management 1) Which of the following is an accurate statement about product management? A) It is also known as quality management. B) It is rarely team-based. C) It is a continual process. D) It includes responsibility for the marketing mix tools of product and promotion, but not of price and place. E) It involves more strategic planning than tactical planning. Answer: C 2) When marketers develop ________ strategies, they make decisions about product benefits, features, styling, branding, labeling, and packaging. A) communication B) product C) equity D) total quality management (TQM) E) Six Sigma Answer: B 3) Which of the following is NOT necessary for a product-related objective to be effective? A) It should focus primarily on short-term implications. B) It should be measurable. C) It should be feasible. D) It should indicate a specific time frame. E) It should be clear. Answer: A 4) A ________ is a firm's total product offering designed to satisfy a group of target customers. A) brand B) product line C) product mix D) positioning strategy E) marketing mix Answer: B 5) A firm's ________ is determined by the number of separate items within the same category. A) brand equity B) product mix width C) product line length D) product quality E) brand strategy Answer: C 6) The most appropriate strategy for a firm that wants consumers to see it as a specialist with a clear, specific position in the market is a(n) ________. A) full-line strategy B) limited-line strategy C) undifferentiated strategy D) upward line stretch E) downward line stretch Answer: B 7) A firm that plans to use a(n) ________ will add higher priced, higher quality items to its product line. A) upward line stretch B) limited-line strategy C) undifferentiated strategy D) marketing mix contraction E) cannibalization strategy Answer: A 8) Which of the following is NOT an option for extending a product line? A) cannibalization B) downward line stretch C) upward line stretch D) two-way stretch E) filling-out strategy Answer: A 9) Whenever a product line or a product family is extended, there is a risk of ________, which occurs when sales of an existing brand decline as the firm's current customers switch to the new product. A) product line contraction B) disintermediation C) cannibalization D) brand inequity E) a downward line stretch Answer: C 10) An alternative to a two-way stretch is ________, adding more items within the present range of the line. A) cobranding B) family branding C) a mixing strategy D) a filling-out strategy E) a contracting strategy Answer: D 11) Which of the following is one of the ways that Berkowitz Piano Company can expand its product line? A) a product mix strategy B) a filling-out strategy C) societal marketing D) internal marketing E) line mixing Answer: B 12) A focus on serving internal customers is part of ________. A) total quality management (TQM) B) Six Sigma C) ISO 9000 D) ISO 14000 E) ISO 22000 Answer: A 13) A firm's ________ is its entire range of products. A) product line B) product mix C) marketing mix D) promotional mix E) positioning strategy Answer: B 14) When a company begins marketing a new product line in addition to its existing product lines, it has done which of the following? A) expanded the length of the product line B) expanded the width of the product mix C) expanded the depth of the product mix D) expanded the width of the marketing mix E) used a filling-out strategy Answer: B 15) Which of the following refers to a product's overall ability to satisfy customers' expectations? A) value proposition B) brand equity C) product precision D) brand meaning E) product quality Answer: E 16) Which of the following is a management philosophy that focuses on satisfying customers through empowering employees to be an active part of continuous quality improvement? A) cannibalization B) total quality management (TQM) C) Six Sigma D) ISO 9000 E) ISO 14000 Answer: B 17) ________ involves a five-step process called DMAIC (define, measure, analyze, improve, and control) designed to improve quality. A) Total quality management (TQM) B) Cannibalization C) ISO 9000 D) ISO 14000 E) Six Sigma Answer: E 18) It is most accurate to say that total quality management firms believe that it is the responsibility of ________ employees to serve the needs of customers. A) marketing B) research and development C) human resource D) management E) all Answer: E 19) Which of the following was developed to guarantee that an organization's products conform to the customer's requirements? A) Six Sigma B) ISO 9000 C) ISO 14000 D) ISO 22000 E) TQM Answer: B 20) Which of the following helps an organization focus on minimizing any harmful effects it may have on the environment? A) Six Sigma B) ISO 9000 C) ISO 14000 D) ISO 22000 E) TQM Answer: C 21) An American company wanting to be competitive in the European market would be most likely to seek which type of certification? A) ISO 14000 B) DMAIC C) TQM D) Six Sigma E) ISO 22000 Answer: A 22) Which of the following is designed to help a firm almost entirely reduce product and service defects? A) ISO 14000 B) ISO 19000 C) Six Sigma D) TQM E) ISO 22000 Answer: C 23) Active Beverages targets the same people who watch the Gravity Games and enjoy skateboarding, in-line skating, mountain biking, and other extreme sports. It makes high-energy drinks for this target market. It does not attempt to make any drinks that are not targeted to this market. Active Beverages uses a(n) ________. A) undifferentiated marketing strategy B) filling-out strategy C) cannibalization strategy D) limited-line strategy E) brand extension strategy Answer: D 24) In addition to regular Alka-Seltzer, there is an Alka-Seltzer product for each of the following: cold sufferers, people with upset stomachs, people who can't sleep, people with allergies, and people who have a severe headache. The manufacturer of Alka-Seltzer is using a(n) ________ to reach as many different target markets as possible. A) full line strategy B) downward line stretch C) cannibalization strategy D) undifferentiated strategy E) upward line stretch Answer: A 25) Mercedes was able to successfully introduce its C-Class car at $30,000 without injuring its ability to sell other Mercedes cars for $100,000 or more. Mercedes implemented a(n) ________. A) downward line stretch B) product line contraction C) cannibalization strategy D) upward line stretch E) value stretch Answer: A 26) Heinz stopped marketing its "Bite Me" brand of frozen pizza snacks due to disappointing sales. This is an example of a ________. A) filling-out strategy B) downward line stretch C) product line contraction D) value stretch E) cannibalization strategy Answer: C 27) A winery introduced a brand wine that it priced twice as high as its other wine. This is an example of product extension by a(n) ________. A) downward line stretch B) product mix C) cannibalization strategy D) upward line stretch E) two-way stretch Answer: D 28) A company makes several different kinds of shampoo, but it did not have a dandruff shampoo designed for women until it added Pro-Women antidandruff shampoo. This is an example of a(n) ________. A) downward line stretch B) upward line stretch C) cannibalization strategy D) filling-out strategy E) product line contraction Answer: D 29) A company introduced the Funday film to compete with lower-priced brands, but it found many of its regular customers bought Funday instead of its usual, higher-priced film. The company experienced ________. A) an upward line stretch B) a product line contraction C) disintermediation D) cannibalization E) filling in Answer: D 30) A company has only one product line: all the company manufactures is supercomputers. This one product line is also the company's ________. A) branding strategy B) marketing mix C) product mix D) promotional mix E) brand equity Answer: C 31) Practically every brand of soft drink ever made is available at Mom's Soda Shop; regional beverages from around the world can be purchased at the retailer's web site. The retailer targets people who have developed a fondness for a particular soft drink and can no longer find it. The retailer's ________ is all types of soft drinks. A) branding strategy B) product objective C) positioning strategy D) marketing mix E) product mix Answer: E 32) When creating product objectives, marketers should consider the long-term implications of product decisions. Answer: True 33) A company can stretch its product line either upward or downward, but not both directions. Answer: False 34) A stock-keeping unit (SKU) is a unique identifier for each distinct brand. Answer: False 35) The poor quality of American products in comparison to Japanese products in the 1980s led to the ISO quality revolution in American industry. Answer: False 36) Total quality management involves all employees, regardless of their function, in continual quality improvement efforts. Answer: True 37) The Six Sigma process is applied to products but not services. Answer: False 38) A watch manufacturer added a watch to its product line that was higher priced than the models it already carried. The company used a two-way stretch strategy. Answer: False 39) Explain cannibalization. How does a line extension strategy increase the risk of cannibalization? Answer: Organizations often decide to extend their product lines by adding more brands or models. Any time a new or similar product is introduced, there is a risk of cannibalization of existing products. Cannibalization is the loss of sales of an existing product to a new item in a product line or product family that the company has introduced. Instead of reaching new customers, the new product may just cause current customers to switch brands. Marketers must consider whether a new brand or model will significantly detract from their existing brands. 40) How can marketers use elements of the marketing mix to improve product quality? Answer: Product, place, price, and promotion are the elements of the marketing mix. Improving quality through the product element might mean improving customer service support, making it quicker and easier for customers to interact with the company and get the results they desire. Improving quality through place could involve improving on-time delivery to customers by reevaluating and modifying purchasing and delivery strategies. Improving quality through price involves offering a lower price, which means reducing the firm's costs. Finally, improving quality through promotion can mean making more information available to customers when and where they want it. 41) Why is successful product management increasingly important as technology moves forward and the marketplace becomes more globalized? Answer: As more competitors enter the global marketplace and as technology moves forward at an increasing pace, more and more products are created, grow, reach maturity, and decline faster. This means that good product decisions are more critical than ever. Marketers don't have the time to try one thing, find out if it does not work, and then try something else. 42) A car company is marketing a new car model that is larger and more luxurious than any of the models currently in the product line. It is also significantly more expensive. Explain the strategy this car company is using with its product line. Answer: This car company is using an upward line stretch with this new car, adding a product that is higher quality or has added features to the product line. 43) What is the difference between a product line and a product mix? Answer: A product line is a firm's total product offering designed to satisfy a single need or desire of a group of target customers. A firm's product mix is its entire range of products, encompassing all of the firm's product lines. 44) What is the difference between ISO 9000 and ISO 14000? Answer: Both are quality guidelines set forth by the International Organization for Standardization; the ISO 9000 focuses on guaranteeing that an organization's products conform to customers' requirements, while the ISO 14000 focuses on an organization's environmental management. 45) What is the difference between total quality management (TQM) and the Six Sigma process? Answer: Six Sigma sets a specific goal for product and service quality, with a specific five-step process to achieve that goal, while total quality management sets a goal of continuous improvement of all of the company's operations. 46) Identify four different possible meanings of product quality. Answer: Answers will vary, but should reflect the different meanings of quality: durability, reliability, versatility, consistency, precision, ease of use, safety, and aesthetics. Four different possible meanings of product quality could include: 1. Performance Quality: How well the product performs its intended function. 2. Features: Additional characteristics or attributes that enhance the product's appeal. 3. Reliability: Consistency in performance over time and under different conditions. 4. Durability: The lifespan of the product and its ability to withstand wear and tear. 47) The product life cycle concept can be applied by marketers as a useful framework for describing how ________. A) to forecast product performance B) to develop marketing strategies C) a market responds to a product over time D) product ideas are developed E) a brand gains a dominant position in the market Answer: C 48) All of the following are stages in the product life cycle EXCEPT which one? A) introduction B) adoption C) growth D) maturity E) decline Answer: B 49) The marketing goal for a product in the growth stage of its product life cycle is to ________. A) stabilize profit margins B) encourage brand loyalty C) reach peak sales levels D) compete on the basis of price E) maintain market share Answer: B 50) The sales peak typically occurs during which stage of the product life cycle? A) introduction B) youth C) development D) maturity E) leveling Answer: D 51) Which stage in the product life cycle is characterized by rapidly increasing sales and increasing profits? A) introduction B) youth C) growth D) maturity E) development Answer: C 52) The final stage in the product life cycle is ________. A) maturity B) decline C) phasing out D) harvesting E) divestment Answer: B 53) In which stage of the product life cycle will promotional expenditures be especially high in an attempt to create consumer awareness? A) product development B) introduction C) decline D) maturity E) youth Answer: B 54) Which stage in the product life cycle is usually the longest? A) introduction B) development C) growth D) maturity E) decline Answer: D 55) In which stage of the product life cycle would a firm most likely use price reductions and reminder advertising to encourage customers to replace worn-out items? A) growth B) youth C) maturity D) adoption E) leveling Answer: C 56) A manufacturer of a product in the decline stage of its product life cycle would be LEAST likely to do which of the following? A) continue producing the product for loyal users B) reduce the advertising budget for the product C) phase out production of the product D) advertise heavily without changing the product or its target market E) withdraw most marketing support for the product and rely on e-commerce Answer: D 57) A manufacturer with a product in the decline stage of the product life cycle would most likely decide to ________ if there is reason to believe that there will be a residual demand for the product. A) maintain the product without change B) let existing stocks of the product run out C) drop the product immediately D) search for replacements E) increase sales promotion efforts Answer: A 58) ________ is the product life cycle period when sales fall off and profits drop. A) Maturity B) Decline C) Development D) Divestment E) Leveling Answer: B 59) Kitchen dishcloths are often difficult to rinse clean and typically dry slowly. A company developed a disposable kitchen cloth that rinses easily and dries quickly. Because this is a new product to the market, it can be said to be in the ________ stage of its product life cycle. A) competitive B) trial C) introduction D) growth E) youth Answer: C 60) There are numerous kinds of shampoo, including vitamin-enriched, fruit-enhanced, color-sensitive, therapeutic, and so on. Shampoo that simply promises to clean hair, however, has seen declining sales, has little or no advertising, and has been phased out by most manufacturers. Shampoo that makes no other promise than to clean hair is in the ________ stage of its product life cycle. A) maturity B) leveling C) repositioning D) withdrawal E) decline Answer: E 61) Recently a company brought a miniature version of its cereal bars to market. The nugget-sized product was very successful because it was not messy. Another company then introduced a similar product under its own brand. Mini-cereal bars are most likely in the ________ stage of their product life cycle. A) introduction B) youth C) growth D) maturity E) extension Answer: C 62) Over the past 100 years or so, Binney and Smith's Crayola crayons have become household staples in more than 80 countries around the world. The company occasionally tinkers with the product's marketing mix to maintain market share. Crayola crayons are in the ________ stage of the product life cycle. A) growth B) extension C) development D) maturity E) decline Answer: D 63) The length of the introduction stage of the product life cycle is typically the same for all products. Answer: False 64) Each year, the majority of new products introduced fail. Answer: True 65) A buttery spread designed to help lower cholesterol levels is a product with a number of new competitors entering the market. This product is most likely in the introduction stage of its product life cycle. Answer: False 66) Why do so many products fail to make it past the introduction stage of the product life cycle? Answer: For a new product to be successful, consumers must first know about it. Then they must believe it is something they want or need. The intense promotional costs of this stage, as well as the firm's need to recoup its investment in developing the product, put a lot of pressure on the firm to quickly establish and then increase sales. If marketers cannot successfully do this, then the new product is unlikely to leave the introduction stage. 67) Each product will have a life cycle, although its exact shape and length is not known in advance. Briefly explain each step in the product life cycle. Answer: Introduction is a period of slow sales growth as the product is introduced in the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction. Growth is a period of rapid market acceptance and increasing profits. Maturity is a period of slowdown in sales growth because the product has achieved acceptance by most potential buyers. Profits level off or decline because of increased marketing outlays to defend the product against competition. Decline is the period when sales fall off and profits drop. A company may seek to maintain a product hoping competition will diminish or drop it. 68) Why might ad expenditures be high for products in the introductory stage of the product life cycle? Answer: Consumers have very little awareness about such products; promotional spending can enhance customer awareness. 69) Why might ad expenditures remain high in the growth stage of the product life cycle? Answer: Though sales are increasing for such products, competition becomes fierce as competitors attempt to enter the market; therefore, ad dollars remain high in an effort to offset competitive threats. 70) A ________ is a name, term, symbol, or other unique element of a product that identifies one firm's products and sets it apart from the competition. A) patent B) brand C) license D) position E) value proposition Answer: B 71) The triangular red Nabisco logo is an example of a ________. A) patent B) brand mark C) trade character D) brand meaning E) cobrand Answer: B 72) According to your text, which of the following is probably the most used and most recognized form of branding? A) brand name B) trade character C) patent D) logo E) copyright Answer: A 73) A good brand name should do all of the following EXCEPT fit ________. A) the target market B) the competition C) the customer's culture D) the product's benefits E) legal requirements Answer: B 74) Which of the following is NOT a desirable quality for a brand name? A) It should suggest something about the product's benefits. B) It should be easy to pronounce and remember. C) It should be a long word to get attention. D) It needs to fit legal requirements. E) It should make sense in the customer's culture. Answer: C 75) A ________ is the legal term for a brand name, brand mark, or trade character. A) trademark B) patent C) copyright D) logo E) corporate mark Answer: A 76) Which of the following statements about brand equity is NOT true? A) Brand equity means a brand has customer loyalty. B) Brand equity refers to the brand's value to an organization. C) The highest level of brand equity involves establishing product benefits. D) Brand equity gives a firm the power to capture and hold onto a larger share of the market and to sell at prices with higher profit margins. E) Brand equity can provide a competitive advantage. Answer: C 77) The concept of ________ encompasses the beliefs and associations that a consumer has about a brand. A) brand meaning B) brand storytelling C) brand equity D) product quality E) total quality Answer: A 78) Which of the following most accurately describes a brand extension? A) a new product that combines the power of two or more brand names B) a new product sold under an established brand name C) a new product added to the lower end of a product mix D) a new product added to the higher end of a product mix E) a new product line added to a product mix Answer: B 79) A family brand strategy is also called a(n) ________ strategy. A) cobranding B) licensing C) umbrella brand D) store brand E) national brand Answer: C 80) P&G makes Tide, Cheer, Ivory Snow, and Bold detergents as well as PertPlus, Rejoice, and Vidal Sassoon shampoos. Through its use of a separate and unique brand name for each of these products, Procter & Gamble is using a(n) ________ strategy. A) umbrella brand B) family brand C) individual brand D) private-label brand E) cobranding Answer: C 81) Through ________, one firm sells another firm the right to use a legally protected brand name for a specific purpose for a specific period of time. A) umbrella branding B) store branding C) franchising D) licensing E) trademarking Answer: C 82) Toronto-based Loblaw supermarket chain developed President's Choice brand products to sell exclusively in its stores. President's Choice is an example of a ________. A) manufacturer brand B) national brand C) cobrand D) generic brand E) private-label brand Answer: E 83) Which of the following is essentially no branding at all? A) national branding B) ingredient branding C) generic branding D) sub-branding E) store branding Answer: C 84) What is the most logical explanation that retailers carry private-label brands? A) to eliminate the need for competitive advantages B) to encourage transaction marketing C) to support trade promotions D) to earn more profit E) to prevent sales cannibalization Answer: D 85) In a competition between ________ and ________ brands, retailers have the advantages of controlling what products will be stocked, where products will be stocked, what prices will be charged, and which products will be featured in local print promotions. A) national; manufacturer B) national; private-label C) store; private-label D) national; licensed E) manufacturer; licensed Answer: B 86) Which of the following is true about generic brands? A) They are more popular today than ever before. B) They were first developed during the last period of economic prosperity in the United States. C) They were designed to appeal to the price-conscious consumer. D) They attract approximately 25 percent of all dollars spent in U.S. supermarkets. E) They are manufacturer brands. Answer: C 87) ________ is an agreement between two brands to work together in marketing a new product. A) Manufacturer branding B) Cobranding C) Franchising D) Family branding E) Aggregated branding Answer: B 88) In ________, branded materials become component parts of other branded products. A) family branding B) aggregated branding C) umbrella branding D) manufacturer branding E) ingredient branding Answer: E 89) Breyers and Reese's have worked together to create Breyers Ice Cream with Reese's Peanut Butter Cups. This is an example of ________. A) family branding B) ingredient branding C) private-label branding D) individual branding E) generic branding Answer: B 90) Which approach to measuring brand equity focuses on the ability of a brand to charge a higher price than the price charged by an unbranded equivalent? A) revenue premium metrics B) financial market metrics C) product-market outcomes metrics D) equity-identity metrics E) customer mind-set metrics Answer: C 91) Which of the following types of brand equity metrics would most likely be based on information gathered through consumer surveys? A) revenue premium metrics B) financial market metrics C) brand venture metrics D) equity-identity metrics E) customer mind-set metrics Answer: E 92) Product packaging can do all of the following EXCEPT which one? A) protect the product B) provide service C) communicate brand personality D) make the product easier to store E) create a competitive advantage Answer: B 93) ________ involves designing and producing the container or cover for a product. A) Labeling B) Licensing C) Packaging D) Retailing E) Servicing Answer: C 94) Which of the following is true of the Universal Product Code (UPC)? A) It is a five-digit number used to control inventory. B) It is a package communication element. C) It is legally required for products with dual distribution channels. D) It is used only by companies that have more than one retail outlet. E) It prevents product cannibalization. Answer: B 95) Which of the following is NOT true of the Universal Product Code (UPC)? A) It is printed on the side or bottom of all non-perishable items sold in grocery stores and other mass-merchandising outlets. B) It supplies information about the type of item. C) It identifies the manufacturer of the product. D) It is read by an electronic scanner. E) Retailers use information from UPC bars to track sales and control inventory. Answer: A 96) Firms interested in using socially responsible packaging that is less harmful to the environment are developing ________. A) aesthetic packaging B) green packaging C) ingredient packaging D) venture packaging E) Kansei engineering Answer: B 97) Which of the following controls package communications and labeling in the United States? A) the Food and Drug Administration (FDA) B) the Nutrition Labeling and Education Act C) the Nutrition Facts Panel D) the Federal Fair Packaging and Labeling Act E) the Consumer Bill of Rights Answer: D 98) Which of the following is NOT required by the U.S. Food and Drug Administration (FDA) on the labels of most foods sold in the United States? A) amount of saturated fat in the product B) sources of all ingredients in the product C) amount of cholesterol in the product D) number of calories in the product E) amount of protein in the product Answer: B 99) Which of the following would be information included in a UPC code? A) the customer's contact information B) the ingredients of the product C) the manufacturer of the product D) the retailer of the product E) the expiration date of the product Answer: C 100) Chicken of the Sea brand tuna sells more than the same size Kroger brand tuna, even though the Kroger tuna costs $0.15 less per can. Chicken of the Sea has brand ________. A) extension B) equity C) service D) valuation E) specialization Answer: B 101) Oreos and Coke are both examples of ________. A) store brands B) cobrands C) private-label brands D) national brands E) ingredient brands Answer: D 102) Arm & Hammer began as a producer of baking soda. Now the company manufactures detergents, deodorants, and fabric softeners under the Arm & Hammer brand name. Arm & Hammer uses a ________ strategy. A) brand extension B) product line contraction C) downward line stretch D) cannibalization E) cobranding Answer: A 103) Kellogg's has marketed Special K cereal for a number of years to a loyal customer base. Its introduction of a new cereal called Special K with Red Berries is an example of a(n) ________ strategy. A) cannibalization B) cobranding C) brand extension D) upward line stretch E) downward line stretch Answer: C 104) The J. M. Smuckers Company makes jams, jellies, fruit spreads, and ice cream toppings. All of these products are sold using the Smuckers brand name. This company uses a(n) ________ strategy. A) store brand B) private-label brand C) cobranding D) ingredient branding E) family brand Answer: E 105) Disney allowed a paint manufacturer to produce paint using the Disney brand name for a specific period of time. Disney paint is an example of ________. A) licensing B) cobranding C) family branding D) ingredient branding E) private-label branding Answer: A 106) Mattel teamed with Coca-Cola to market Soda Fountain Sweetheart Barbie. This is an example of ________. A) generic branding B) family branding C) franchising D) cobranding E) ingredient branding Answer: D 107) Which of the following is an advantage offered by cobranding? A) Manufacturers do not have to invest in creating their own brand names. B) Retailers have exclusive products that cannot be purchased from competitors. C) Advertising, sales, promotion, and marketing must be carefully coordinated. D) Brand equity is stabilized. E) A company can expand its existing brand into a category it otherwise might have difficulty entering alone. Answer: E 108) Existing brand equity can hamper the success of a brand extension strategy. Answer: False 109) Discount retailers such as Walmart do not sell private-label brands. Answer: False 110) Packaging plays an important role in communicating brand personality. Answer: True 111) Marketers should consider the packaging of other brands within the category when designing their brand's packaging. Answer: True 112) The UPC is a global system of product identification. Answer: False 113) The Food and Drug Administration (FDA) controls all package communications and labeling in the United States. Answer: False 114) The Food and Drug Administration (FDA) requires most food labels in the United States to state how much fat, cholesterol, and protein are in each serving of the product. Answer: True 115) The Clorox Company marketed a new product called Clorox Oxygen Action multipurpose stain reliever. This is an example of a brand extension. Answer: True 116) Heinz and Jack Daniels worked together to produce Jack Daniels grilling sauce. This is an example of cobranding. Answer: True 117) Discuss the concept of escalating levels of commitment to a brand. How do consumers progress in loyalty to a brand? Answer: At the lowest level, consumers really have no loyalty to a brand and will switch brands for any reason. Moving up, though, consumers look at brand performance and imagery, focusing on what it does for them. The next level is more emotional, with consumers forming beliefs about the brand and having emotional reactions to it. The highest level of brand loyalty occurs when consumers bond with the brand and feel they have a real relationship with it. This relationship may be based on one of many different kinds of attachment, such as self-concept, nostalgia, interdependence, or even love. 118) As a retailer, why might you increase the number of private-label brands you sell? Answer: Private-label or store brands are the retailer's exclusive trade name. Retailers choose a private-label branding strategy because they generally make more profit on store brands than on national or manufacturer brands. Private-label branding is also important when retailers seek to maintain a consistent store image and build brand equity that belongs to their store rather than a manufacturer. 119) What is ingredient branding? Why would manufacturers want to engage in ingredient branding? Answer: Ingredient branding is a form of cobranding in which branded materials are used as ingredients or component parts of other branded products. The practice of ingredient branding has two primary benefits. First, it attracts customers to the host brand because the ingredient brand is familiar and has a strong brand reputation for quality. Second, the ingredient brand's firm can sell more of its product, not to mention the additional revenues it gets from the licensing agreement. 120) How can a marketer use a package to communicate with consumers? Answer: A marketer can use a package to communicate brand personality through effective use of colors, words, shapes, and images. In addition to brand identity, the package can provide facts and important consumer tips, as well as warranty information and ways to contact the company. The choice of packaging can make an aesthetic statement about the brand or convey a brand's commitment to social responsibility. For instance, many brands are now marketed in green packaging that is less harmful to the environment than other materials. 121) Briefly explain the history of regulations concerning packaging and labels. Answer: The Fair Packaging and Labeling Act of 1966 controls package communications and labeling. The law aims to make labels provide information that is useful to consumers. The Nutritional Labeling and Education Act of 1990 requires sellers to provide detailed nutritional information on food products. In addition, the Food and Drug Administration requires labels to provide information about calories, fat, carbohydrates, protein, and vitamin content. 122) What are the four "easy" tests brand designers use in selecting a good brand name? Choose a brand and explain how it passes these tests. Answer: The four "easy" tests brand designers use to judge a brand name are whether the name is easy to say, easy to spell, easy to read, and easy to remember. Specific brand answers will vary. 123) How is it possible for a company in the United States to have protection for a brand even if it has not legally registered it? Answer: In the United States, common-law protection exists if the firm has used the name and established it over a period of time. 124) Panasonic markets a line of digital cameras that use Leica lenses. Leica lenses are legendary for their superb image quality. Panasonic is known for its consumer electronics. What marketing strategy are Panasonic and Leica implementing? Support your answer. Answer: Panasonic and Leica are implementing cobranding. Cobranding benefits both partners when the combination of the two brands provides more customer recognition power than either brand on its own. 125) Why might a firm want to use green packaging? Describe one type of green packaging in your answer. Answer: A firm might want to use green packaging, such as a smaller package of concentrated laundry detergent or fabric softener, to reduce the environmental impact of the package. The firm can show customers its commitment to act in a socially responsible manner through its packaging choices. 126) Briefly explain what the U.S. Food and Drug Administration (FDA) requires on food labels and why. Answer: The FDA requires marketers to provide a great deal of information on food labels, including the amount of fat, saturated fat, calories, cholesterol, carbohydrates, protein, vitamins, and trans fat. These regulations are designed to force firms to be accurate in describing their products so that consumers can know exactly what they are buying. 127) In small firms, the marketing function is usually handled by a ________ who is responsible for new-product planning, advertising, working with the company's sales representatives, and marketing research. A) single marketing manager B) brand manager C) product category manager D) market manager E) venture team manager Answer: A 128) ________ are responsible for the positioning of a brand and developing its brand equity. They are likely to team with sales, finance, and logistics staff members as part of customer business teams who work with major retail accounts. A) Product category managers B) Brand managers C) Venture team managers D) Market managers E) Sales managers Answer: B 129) Which of the following is a disadvantage of the brand management system? A) a tendency to avoid price differentiation B) too much focus on the supplementary and complementary roles of all product lines C) a tendency to overemphasize short-term gains in sales D) an interdependent structure that can undermine personal responsibility E) too much focus on establishing brand equity Answer: C 130) Which of the following is true about a brand manager and a product category manager? A) They are two titles for the same job. B) They have the same functional responsibilities. C) They probably work for large firms. D) They are mainly responsible for financial decisions. E) They do not consider new product lines. Answer: C 131) Which of the following accurately describes a product category manager? A) A product category manager works for a company that relies solely on individual branding. B) A product category manager is responsible for moving a company's product mix from generic to branded. C) A product category manager coordinates the development of brand equity for a specific brand name. D) A product category manager is also called a sales manager. E) A product category manager coordinates the mix of product lines within a general product category and is responsible for the addition of new product lines. Answer: E 132) Within the market manager structure, managers focus on ________. A) specific customer groups rather than specific products B) specific products rather than specific customer groups C) one or two specific brands D) all company brands and all company customers E) new product development and marketing Answer: A 133) Which of the following is most useful when a firm offers a variety of products that serve the needs of a wide range of customers? A) the single marketing manager structure B) the independent brand manager structure C) the sales manager structure D) the product category manager structure E) the market manager structure Answer: E 134) When large companies undertake new-product development, they typically enlist specialists in different areas to create a ________ within the organization. A) focus group B) product category team C) sales team D) venture team E) cross-functional brand team Answer: D 135) Venture teams focus exclusively on which of the following? A) products in the maturity stage of the product life cycle B) products in the growth stage of the product life cycle C) relationships with large, important customers D) the development of a new product E) the promotional plan for a new product Answer: D 136) The term skunk works is associated with which of the following? A) total quality management (TQM) B) Six Sigma C) product category teams D) cross-functional teams E) venture teams Answer: E 137) A firm's skunk works department would most likely be located ________. A) in a central part of the firm's main office building B) in the most productive section of the company C) away from the firm's traditional offices D) at the headquarters of the firm's largest customer E) as close as possible to the firm's communication specialists Answer: C 138) General Foods produces many different brands of coffee, including Brim, Maxim, Maxwell House, International Coffees, Sanka, and Yuban. Each brand is likely to have its own ________. A) venture team B) market manager C) product category manager D) communication manager E) brand manager Answer: E 139) Kodak markets cameras, film, X-ray film and equipment, printers, motion picture film, and touch screen sensors. Kodak is likely to have ________ who coordinate the mix of the product lines. A) brand managers B) product category managers C) venture teams D) communication teams E) market managers Answer: B 140) Colgate-Palmolive replaced its brand management structure with a product category management structure. A manager who had once managed Colgate toothpaste now manages all of the company's dental products. Under Colgate's new system, a product category manager would have ________. A) profit and loss responsibility for all dental products B) completely different duties than the brand manager had C) less direct authority to achieve goals D) no authority over functions, other than marketing, that affect dental products E) no authority over international dental product sales Answer: A 141) A manufacturer of acrylic, latex, and nitrile gloves sells to medical laboratories, factories where employees handle chemicals, companies that manufacture micro-tech equipment, and cleaning services. The company is organized to better satisfy the specific needs of each of its four target markets, so it uses a ________ structure. A) product category B) market manager C) brand manager D) venture team E) family brand Answer: B 142) The effectiveness of product strategies depends on the managers who carry them out. Answer: True 143) Depending upon the organization, product management may include brand managers, product category managers, and market managers. Answer: True 144) Brand managers may push too hard with coupons or other price incentives to the point that customers will refuse to buy the product without these promotions. Answer: True 145) Long-term profitability will not be affected if the brand managers offer an excess of coupons or cents-off packages to customers. Answer: False 146) The market manager structure would probably not be useful when firms offer a variety of products that serve the needs of a wide range of customers. Answer: False 147) A brand manager serves essentially the same function as a product category manager. Answer: False 148) How does a product category manager differ from a market manager? Answer: The focus of each position is different. A product category manager is responsible for developing and implementing the marketing plan for all of the brands and products within a product category. A market manager is responsible for developing and implementing the marketing plans for all products sold to a particular customer group. A product category manager will have more expertise in a particular product line, while a market manager will have more expertise in serving a particular market segment. 149) What are some of the potential responsibilities of brand managers employed at P&G? Answer: Procter & Gamble brand managers function like internal consultants. They are responsible for positioning brands and developing brand equity. They are likely to work with sales and finance as well as logistic staff members as a part of cross-functional teams. 150) Explain the potential problems associated with the brand management system. Answer: Because brand managers within one firm may be in competition against each other, they may push too hard for short-term sales with coupons and other sales promotions for their own brand that damage other brands and, in the long run, hurt brand equity. Test Bank for Marketing: Real People, Real Choices Michael R. Solomon, Greg W. Marshall, Elnora W. Stuart 9780132948937, 9780135199893, 9780134292663, 9780135209929
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