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Unformatted text preview: 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 products attributes, benefits, values, and personality. Brand equity- The added value the given brand name gives to a product beyond the functional benefits provided. 6. Distinguish between manufacturers brands and private label brands. Manufacturers 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 manufacturers 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). Manufacturers 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....
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- Fall '07