MKTG 350 EXAM 2 QUESTIONS AND
ANSWERS ALL CORRECT
What are some pros of having brand loyalty? - Answer- Important source of value for
firms
Consumers are less sensitive to price
Marketing costs are much lower
Firms are insulated from the competition
Why does brand equity matter? - Answer- Price premium
Customer loyalty
Lower marketing costs
Easier product launches
Competitive advantage
Packaging is often the ____ brand interaction - Answer- first
What does packaging influence? - Answer- Perceived quality
Brand personality
Purchase decisions
Price expectations
Products can be: - Answer- Physical goods
Services
Ideas
4 things that packaging actually does - Answer- Protect the product
Communicate the brand
Influence purchase decisions
Improve user experience
A great package becomes a ____ ____ - Answer- brand asset
Packaging must: - Answer- Stand out
Communicate quickly
Fit category expectations
4 Classifications of products - Answer- Convenience products
Shopping products
Specialty products
Unsought products
, Convenience products - Answer- inexpensive, everyday items purchased frequently,
immediately, and with minimal effort (snacks, toiletries)
Shopping products - Answer- consumer goods that customers typically compare for
suitability, quality, price, and style before purchasing (clothing, furniture)
Specialty products - Answer- unique goods or services with distinct characteristics or
brand identification that a specific group of buyers is willing to make a special
purchasing effort to acquire (sports cars)
Unsought products - Answer- goods or services that consumers are unaware of, do not
normally think of buying, or do not actively seek out (caskets)
Brand extensions - Answer- a growth strategy where an established brand name is
used to launch a new product in a different category, leveraging
Co-branding - Answer- marketing two or more brands together
Brand licensing - Answer- licensing images on brands
Brand repositioning - Answer- a strategic process of altering a brand's market
perception, targeting, or messaging to remain relevant, enter new markets, or overcome
poor performance
Breadth - Answer- number of product lines in a product mix
Depth - Answer- Number of categories within a product line
Breadth = new categories→____ ______ - Answer- new customers
Depth = more options in same category→____ customers, spend ____ - Answer- same,
more
Revamped (risk and growth potential) - Answer- low risk
low growth potential
Line extension (risk and growth potential) - Answer- low risk
medium growth potential
New category (risk and growth potential) - Answer- medium risk
medium growth potential
New to market (risk and growth potential) - Answer- high risk
high growth potential
ANSWERS ALL CORRECT
What are some pros of having brand loyalty? - Answer- Important source of value for
firms
Consumers are less sensitive to price
Marketing costs are much lower
Firms are insulated from the competition
Why does brand equity matter? - Answer- Price premium
Customer loyalty
Lower marketing costs
Easier product launches
Competitive advantage
Packaging is often the ____ brand interaction - Answer- first
What does packaging influence? - Answer- Perceived quality
Brand personality
Purchase decisions
Price expectations
Products can be: - Answer- Physical goods
Services
Ideas
4 things that packaging actually does - Answer- Protect the product
Communicate the brand
Influence purchase decisions
Improve user experience
A great package becomes a ____ ____ - Answer- brand asset
Packaging must: - Answer- Stand out
Communicate quickly
Fit category expectations
4 Classifications of products - Answer- Convenience products
Shopping products
Specialty products
Unsought products
, Convenience products - Answer- inexpensive, everyday items purchased frequently,
immediately, and with minimal effort (snacks, toiletries)
Shopping products - Answer- consumer goods that customers typically compare for
suitability, quality, price, and style before purchasing (clothing, furniture)
Specialty products - Answer- unique goods or services with distinct characteristics or
brand identification that a specific group of buyers is willing to make a special
purchasing effort to acquire (sports cars)
Unsought products - Answer- goods or services that consumers are unaware of, do not
normally think of buying, or do not actively seek out (caskets)
Brand extensions - Answer- a growth strategy where an established brand name is
used to launch a new product in a different category, leveraging
Co-branding - Answer- marketing two or more brands together
Brand licensing - Answer- licensing images on brands
Brand repositioning - Answer- a strategic process of altering a brand's market
perception, targeting, or messaging to remain relevant, enter new markets, or overcome
poor performance
Breadth - Answer- number of product lines in a product mix
Depth - Answer- Number of categories within a product line
Breadth = new categories→____ ______ - Answer- new customers
Depth = more options in same category→____ customers, spend ____ - Answer- same,
more
Revamped (risk and growth potential) - Answer- low risk
low growth potential
Line extension (risk and growth potential) - Answer- low risk
medium growth potential
New category (risk and growth potential) - Answer- medium risk
medium growth potential
New to market (risk and growth potential) - Answer- high risk
high growth potential
