BUS 1750 - Chapter 12 EOC Questions PDF

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Chapter 12 EOC Questions 1. Review the marketing definition of product. Why do you think marketers define product so broadly? How does the definition of product affect quality? The marketing definition of product is anything that an organization offers to satisfy consumer needs and wants, including both goods and services. I think marketers define product so broadly because they see many possibilities in satisfying consumers needs and wants that not only include physical goods, but also services and ideas. The definition of product affects quality because marketers have to carefully consider each element of the product to ensure that they are maximizing value without sacrificing profitability. 2. Draw a goods and services spectrum, and determine where to place the following products along the spectrum: a nightclub, a new motorcycle, a designer shoe store, an Internet search engine, a new snowboard, and a photography class. What are the reasons for your choices? A goods and services spectrum can provide a valuable tool for analyzing the relationship between the two. At one extreme, pure goods don’t include any services. At the other extreme, pure services don’t include any goods. I would place a nightclub in the middle between pure goods and pure services because a nightclub offers both goods (food and drinks) and services (area to dance and employees to help). I would place a new motorcycle at the pure goods extreme because it is only a good. I would place a designer shoe store would be in the middle between pure goods and pure services because a designer shoe store offers both goods (shoes) and services (sales associates to help you find the perfect pair). I would place an Internet search engine at the pure services extreme because it is only a service with no good involved. I would place a new snowboard at the pure goods extreme because it is only a good no service involved. I would place a photography class at the pure services extreme because it is only a service with no good involved. 3. List five examples of products that are commonly purchased as either business products or consumer products. How would the classification impact the marketing strategy? Five examples of products that are commonly purchased as business products are installations, accessory equipment, raw materials, component parts and processed materials, and business services. Five examples of products that are commonly purchased as consumer products are convenience products, shopping products, specialty products, and unsought products. The classification impacts the marketing strategy because the marketing of products depending on whether they are classified as consumer products or as business products. Marketers further divide consumer and business products into several different

subcategories and these subcategories help marketers develop better strategies for promoting their products. 4. Would it ever make sense for a firm to offer a new product line that they know would cannibalize an existing line? Explain your answer. It would make sense for a firm to offer a new product line that they know would cannibalize an existing line. This is because it is a way for firms to reach completely new customers that they wouldn’t have been able to reach before. If you want to create a new line, you need to include a range of different products designed to meet the needs of their specific customers. It can be dangerous introduced items that may be more attractive than products you have offered in the past, but if the company carefully monitors the cannibalization issue and works to differentiate its lines as fully as possible it can be good for the company and actually help them grow. 5. What are the three different levels of product innovation? Which is most common? Can a business survive long term with only continuous innovation? Why or why not? The three different levels of product innovation are discontinuous innovation, dynamically continuous innovation, and continuous innovation. The most common is continuous innovation. A business can’t survive long term with only continuous innovation. This is because you can’t continually making slight modifications of an existing product because eventually the customers will get tired of the same basic product. Businesses also need to use dynamically continuous and discontinuous innovation once in a while to keep customers interested and bring in new customers. 6. What are the four stages of the product life cycle? How does product life cycle stage impact marketing strategy? The four stages of the product life cycle are introduction, growth, maturity, and decline. The product life cycle impacts the marketing strategy by helping marketers plan effective strategies for existing products and identify profitable categories for new products. It can help marketers extend the profitable run of an individual brand as long as possible by finding new uses for products, changing the product, and changing the marketing mix. 7. How has marketing promotion evolved over the past decade? contributed to the changes?

How has technology

The marketing promotion has evolved over the past decade because consumer expectations and empowerment have skyrocketed, consumer tolerance for impersonal corporate communication has fallen, and digital technology has surged forward at a breakneck speed. Technology contributed to the change because it has given many new tools. Technology has

given us some leading edge tools including internet advertising, social media, product placement, advergaming, buzz marketing, and sponsorships. 8. Why are the key risks and the potential rewards of product placement in both movies and television? Do think this promotional tool will continue to grow? Why or why not? The key risks of product placement in both movies and television are disappearing viewers, jaded viewers, high cost, and uneven quality. The potential rewards of product placement in both movies and television are mass audience, efficient, targeted programming and high impact. I think this promotional tool won’t continue to grow. This is because the mass media prices are increasing and audiences fragment. I think that other types of new media, like the internet, will catch up to movies and television and stop their growth because of the growing disadvantages and the increasing advantages for other types of media. 9. Given that each type of media offers strengths and drawbacks, what factors should you consider in developing a media plan for a specific product? Since each type of media offers strengths and drawbacks, the factors that you should consider in developing a media plan for a specific product are how big of audience you are looking to reach, the type of impact it will make, the cost, if it will reach your target market, how efficient it is, the quality, the flexibility, the visibility, and its intrusive. Your goal as a marketer should be to determine which media options reach your target market efficiently and effectively within the limits of your budget. 10. What are the 6 stages in the selling process? What role does each stage play? Which stage do you believe is most important? Why? The 6 stages in the selling process are prospect and quality, prepare, present, handle objections, close sales, and follow-up. The role that prospect and quality plays is identifying potential customers and choosing those who are most likely to buy your product, which makes salespeople more efficient by focusing their limited time on people who is interested in the product. The role that prepare plays is having the answers to key questions by researching so that you can present your customers with the maximum effectiveness. The role that present plays is having a good first impression by matching the features of your product to the benefits that your customer seeks, so you can elimite reasons for buyers to turn away from your product. The role that handle objections plays is viewing objections as opportunities rather than criticisms, it allows you a chance to learn more about the needs of your prospects and to elaborate on the benefits of your product. The role that close sales plays is the heart of the selling process, which should flow naturally from the prior steps. Although it can seem tough, it’s important to offer another alternative and remember that even if the prospect doesn’t actually make the purchase remember they may be willing to purchase in the future.

The role that follow-up plays is a crucial role in future sales from the same customer and those sales are much easier than finding brand-new prospective prospects. The stage that I believe is most important is the last stage, follow-up. This is because it is key to keep those customers because it is much easier to keep them for future sales than to look for new customers and these relationships also lead to testimonials and referrals that build momentum for long-term sales success....