QUESTION What are the three reasons for understanding how the process of innovation works? What will be an ideal response? ANSWER Answer: (1) Product obsolescence: Existing products become obsolete as consumers’ needs change or competitors add better features. (2) Frequent failure of new products: Constant innovation is necessary because most new products your company […]
QUESTION Differentiate among brand names, brand marks, and trademarks. What will be an ideal response? ANSWER Answer: Brand names are those parts of a brand that can be expressed verbally, such as by words, letters, or numbers. Brand names are those parts of a brand that cannot be expressed verbally, such as graphics and […]
QUESTION What is a brand manager, or product manager, responsible for? What will be an ideal response? ANSWER Answer: A brand manager, or product manager, is responsible for the key elements of the marketing mix—product, price, place, and promotion—for one brand or one product line. Explanation: Many companies have a brand manager, or product […]
QUESTION What is a brand? What will be an ideal response? ANSWER Answer: A brand is a unique name, symbol, or design that identifies an organization and its product or service. Explanation: Brands fall into the three general classes of brand names, brand marks, and trademarks.
QUESTION In hopes of encouraging children to wash dishes, Squishy Sponge Company has come up with the idea of making animal-shaped sponges sized to a child’s hand. The product idea has been screened, and the product analysis has been conducted. What does the company have left to do? (Assume the product is successful at each […]
QUESTION Most of us are likely familiar with the simple elegance of the containers associated with the Method brand of cleaning products. How does the packaging help the brand outside of the packaging’s normal purposes? What will be an ideal response? ANSWER Answer: It helps promote brand awareness. Explanation: Brand awareness means that consumers […]
QUESTION What is bundling? A) This is the practice of pricing two or more products together as a unit. B) This is the strategy in which the cost of producing or buying the product—plus making a profit—is the primary basis for setting price. C) This involves setting a low price to attract many customers and […]
QUESTION The cost of producing or buying the product—plus making a profit—is the primary basis for setting price in this pricing strategy. A) competitive pricing B) target costing C) cost pricing D) price skimming E) penetration pricing ANSWER Answer: C Explanation: C) Some companies favor cost pricing, in which the cost of producing or […]
QUESTION Which kind of pricing is the technique of pricing products or services in odd rather than even amounts to make products seem less expensive? A) discounting B) price skimming C) penetration pricing D) psychological pricing E) bundling ANSWER Answer: D Explanation: D) Psychological pricing, sometimes called odd-even pricing, is the technique of pricing […]
QUESTION Which of the following represents the pricing goal of making a profit? A) aiming for an 18 percent return on investment on the sale of milk B) lowering the price of milk to match the store across the street C) advertising milk as a loss leader to increase market share D) selling milk at […]
