MKT 3401 EXAM 2 QUESTIONS AND ANSWERS
What are the 5 stages of the Product Life Cycle? - Answers - Introduction, Growth,
Maturity, Decline, and Extension
What is extension? - Answers - when a brand continues on just when you think it's over
What is an example of a brand extension? - Answers - The Volkswagen Beetle
returning
What is the growth stage in the product life cycle? - Answers - Focuses on price and
promotion changes along the product life cycle.
What are some questions asked in the growth phase of the product life cycle? -
Answers - How are we going to advertise? How are we going to price it?
What is the maturity phase? - Answers - When the product is sustained, but price and
promotion change along the way
What is the decline phase? - Answers - When the product disappears and dissolves
What is involvement? - Answers - the time and effort spent searching for a product
What are the categories of products? - Answers - Convenience, Shopping, Specialty,
and Unsought
What is a convenience product? - Answers - things that don't cost a lot of money or time
and are low risk. (example: candy bar from a gas station)
What is a shopping product? - Answers - a product that you have to spend more time
and money with a little more risk (example: computer or phone)
What is a specialty product? - Answers - product with a bigger risk on the product and it
can cost more (example: william sonoma cooking gear)
What is an unsought product? - Answers - a type of product you don't think about
needing, but all of the sudden it is needed. Can be hard to shop for, so companies that
present the clearest message get the buyer (Example: Health Insurance)
What are the components that make up products? - Answers - Packaging and warranty
What is product packaging? - Answers - The way a product is packaged and what that
portrays about it
, What is a warranty? - Answers - statement explaining what the company will give if your
product break/malfunctions within a certain amount of time
What is the importance behind a warranty? - Answers - it serves as a point of
differentiation and shows the company trusts their product
What is the story about the creation of the warranty? - Answers - Chrysler is struggling;
several years ago, they hired a whiz kid named Lee Iacoca, a charismatic leader with
Ford who helped design the Mustang. He leaves Ford and goes to Chrysler who had
nothing. Lee saw the van that Chrysler had and saw a segment of the market emerging
that the van would play well in. He also saw that they had this car called the "K" that
was very old-fashioned and plain and there was a segment out there that needed this
car. Going through all the data, Lee realized that the working class needed an
inexpensive means of reliable transportation. They needed to get from point A to B then
from B to A consistently. The problem that Chrysler had was that their products were
not reliable, so Lee made sure that they were more reliable. How do you prove that
something is reliable? He came up with a warranty. Lee came up with the 10-year,
100,000-mile bumper-to-bumper warranty. The warranty made Chrysler look like it was
a better company.
What are the 3 objectives of branding? - Answers - Identification, repeat sales, and
introduction of new products
What are the components of packaging? - Answers - Contain the product, facilitate
recycling, prevent theft, and promote the product
What are the components of promoting the product? - Answers - Color, Shape, Smell,
Sound, and the label
What is the color component of packaging? - Answers - serves as a source identifier
(Example: Pepsi hating Coca-Cola's red)
What is the shape component of packaging? - Answers - the shape the package is
(examples: Red Bull can shape, mints being in a tin because of altoids)
What is the smell component of packaging? - Answers - How the product smells
(Example: New car smell can make you want a new car, smell of tiger stadium can
remind you of college, nice hotels identifying as smells)
What is the sound component of packaging? - Answers - the audio logo, what you think
of when you hear the product sound. (Example: Bell sound on a Taco Bell Commercial)
What are the components of a packages label? - Answers - Instruction, Construction,
Nutrition, and Reducing Cognitive Dissonance
What are the 5 stages of the Product Life Cycle? - Answers - Introduction, Growth,
Maturity, Decline, and Extension
What is extension? - Answers - when a brand continues on just when you think it's over
What is an example of a brand extension? - Answers - The Volkswagen Beetle
returning
What is the growth stage in the product life cycle? - Answers - Focuses on price and
promotion changes along the product life cycle.
What are some questions asked in the growth phase of the product life cycle? -
Answers - How are we going to advertise? How are we going to price it?
What is the maturity phase? - Answers - When the product is sustained, but price and
promotion change along the way
What is the decline phase? - Answers - When the product disappears and dissolves
What is involvement? - Answers - the time and effort spent searching for a product
What are the categories of products? - Answers - Convenience, Shopping, Specialty,
and Unsought
What is a convenience product? - Answers - things that don't cost a lot of money or time
and are low risk. (example: candy bar from a gas station)
What is a shopping product? - Answers - a product that you have to spend more time
and money with a little more risk (example: computer or phone)
What is a specialty product? - Answers - product with a bigger risk on the product and it
can cost more (example: william sonoma cooking gear)
What is an unsought product? - Answers - a type of product you don't think about
needing, but all of the sudden it is needed. Can be hard to shop for, so companies that
present the clearest message get the buyer (Example: Health Insurance)
What are the components that make up products? - Answers - Packaging and warranty
What is product packaging? - Answers - The way a product is packaged and what that
portrays about it
, What is a warranty? - Answers - statement explaining what the company will give if your
product break/malfunctions within a certain amount of time
What is the importance behind a warranty? - Answers - it serves as a point of
differentiation and shows the company trusts their product
What is the story about the creation of the warranty? - Answers - Chrysler is struggling;
several years ago, they hired a whiz kid named Lee Iacoca, a charismatic leader with
Ford who helped design the Mustang. He leaves Ford and goes to Chrysler who had
nothing. Lee saw the van that Chrysler had and saw a segment of the market emerging
that the van would play well in. He also saw that they had this car called the "K" that
was very old-fashioned and plain and there was a segment out there that needed this
car. Going through all the data, Lee realized that the working class needed an
inexpensive means of reliable transportation. They needed to get from point A to B then
from B to A consistently. The problem that Chrysler had was that their products were
not reliable, so Lee made sure that they were more reliable. How do you prove that
something is reliable? He came up with a warranty. Lee came up with the 10-year,
100,000-mile bumper-to-bumper warranty. The warranty made Chrysler look like it was
a better company.
What are the 3 objectives of branding? - Answers - Identification, repeat sales, and
introduction of new products
What are the components of packaging? - Answers - Contain the product, facilitate
recycling, prevent theft, and promote the product
What are the components of promoting the product? - Answers - Color, Shape, Smell,
Sound, and the label
What is the color component of packaging? - Answers - serves as a source identifier
(Example: Pepsi hating Coca-Cola's red)
What is the shape component of packaging? - Answers - the shape the package is
(examples: Red Bull can shape, mints being in a tin because of altoids)
What is the smell component of packaging? - Answers - How the product smells
(Example: New car smell can make you want a new car, smell of tiger stadium can
remind you of college, nice hotels identifying as smells)
What is the sound component of packaging? - Answers - the audio logo, what you think
of when you hear the product sound. (Example: Bell sound on a Taco Bell Commercial)
What are the components of a packages label? - Answers - Instruction, Construction,
Nutrition, and Reducing Cognitive Dissonance
