Final Exam Prep Sheet Fall 2007 - Final Exam Prep Sheet...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Final Exam Prep Sheet – Fall 2007 50 Multiple-Choice, 10 T/F Questions Product Life Cycle 1. Diagram and explain the Product Life Cycle, including its limitations. Conditions: High expenses, low revenues Cash flow challenges Limited competition Limited consumer awareness Conditions: Operations becoming more efficient Cash flow remains a challenge Competition growing Markets are growing Prices soften Conditions: Slowing market growth Efficient operations Thin margins Keen competition Revenue growth comes at the expense of competitors Conditions: Permanently declining demand Industry and company over-capacity, operations less efficient Strong brands have advantage Weak competitors leave market 2. Compare and contrast business conditions for each stage of the PLC. 3. Compare and contrast marketing tactics for each stage of the PLC. 4. Distinguish among the following approaches for introducing new products: pioneers, follow-the- leader companies, segmenters, and me-too companies. Brand Management 5. Define brand and brand equity. Brand- Name, shape, symbol, and/or design that communicates a product’s attributes, benefits, values, and personality. Brand equity-
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
The added value the given brand name gives to a product beyond the functional benefits provided. 6. Distinguish between manufacturer’s brands and private label brands. Manufacturer’s brands-the brand name of manufacturer. National brand, but not always because many of manufacturer serves only for regional area. Private brand- a brand owned by retailer or wholesaler. 1. Overhead is low and there are no marketing costs 2. Higher margin 3. Trusted store brand can differentiate a chain from its competitor 7. Describe why distributors would use a private label brand. What challenges face manufacturer’s brands? AKA “House Brands” or “Store Brands” Applies to 1 in 5 items sold in U.S. stores. 45% of shoppers more likely to switch to store brand in 2001, 31% said so in 1996 (Gallup). Margins are 10% higher (minimal marketing costs and contract purchases). Manufacturer’s brands have uphill fight. In 1995, 3 TV ads could reach 80% of 18-to-49-year- old women. In 2000, the same coverage would require 97 ads. 8. Distinguish between a line extension and brand extension. Line extensions - use existing brand name to introduce new form of product in existing product category Brand extensions - use existing brand name to establish new product in new category. 9. What benefits are gained by using a line (or brand) extension? New revenue sources. Reduced costs and risks for product introductions. Satisfy consumers desire for something different, and block competitors. Move customers to higher price points. Means for introducing technological innovations.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern