Presentation on theme: "3.01 Connor Trent & Connor Seay. 3.01 1. Which of the following is a way that a buisness can extend the life cycle of an establishes product? A. By promoting."— Presentation transcript:
3.01 1. Which of the following is a way that a buisness can extend the life cycle of an establishes product? A. By promoting the product to current users B. By finding new uses for the product C. By restricting distribution D. By attracting customers who are innovators
Answer B, By finding new uses for the product. Establishes products are in the maturity stage, and one way marketers can extend their life cycles is by finding new ways that the products can be used by current consumers. Continuing to promote the same product to current users will not extend its life cycle. Consumers who are innovators are attracted to products in the introductory stage, not the maturity stage. Restricting distribution would shorten rather than lengthen the products life cycle.
3.01 2. When a company uses its product wrapping to promote the preservation of an endangered animal species, its engaging in an ethical practice called.. A. political lobbying B. environmental labeling C. cause packaging D. provocative branding
3.01 3. A business is behaving unethically if its products label contains.. A. nutritional values B. recyclable material C. mandatory requirements D. misleading information
3.01 4. Which of the following technological tools helps a business's employees simultaneously access the same information about the business's products? A. Memory Card B. Micro-Portal C. Intranet D. Generator
Answer C, Intranet. Intranet refers to a business's network of computers that are linked so that the employees can retrieve the same business info. For example, a software program that tracks inventory may be available for the sales department, the shipping department, and the purchasing department to review. A business that uses an Intranet system to manage product maximizes its communications and response time. Generators and memory cards do not allow a business's employees to simultaneously access the product info. Micro-Portal is a fictitious term.
3.01 5. Five years aftera new product has been introduced, sales begin to level off because customers are purchasing the competitors brand. What strategy would be most appropiate to use in this situation? A. Take the product off the market B. Do nothing, fluctuations in sales are common C. Modify the product to renew customer intrest D. Triple the advertising budget for the product
Answer C, Modify the product to renew customer interest. Modifying the product allows a company an opportunity to increase sales without the risk of introducing an entirely new product. Also, such modifications could include and technological advances that have been made since the products introduction. The product should remain on the market, its sales have leveled off- not stopped. If the company does nothing, sales may continue to decline. Tripling the advertising budget does not guarantee increased sales, especially if there is something unsatisfactory about the existing product.
3.01 6. Which of the following is an unethical situation in product/service management? A. Vincent Electronics discontinues production of a slow-moving solar calculator. B. Travis Manufacturing uses recycled materials for its product packaging C. Donnas dress boutique obtains deep discounts from a new clothing designer D. The Simpson company embellishes the information the it places on its product labels
Answer D, The Simpson Company embellishes the info that it places on its product labels. When a company embellishes info on product labels, it is exaggerating the attributes or performance of the product. This is unethical behavior because the company is misleading customers.
3.01 7. What is one way businesses use computer technology to obtain info to improve their product/service mix? A. Mailing questionnaires to customers B. Tracking visitors to their web-sites C. Compiling detailed databases D. Preparing interactive software programs
Answer B, Tracking visitors to their websites. As a result of computer technology, many businesses have developed websites that are accessible to customers. This technology also allows businesses to track their visitors to their website and obtain info such as their name, address, type of purchase etc..
3.01 8. Which activity is addressed in the product/service management function? A. Setting discounts to clear products from inventory. B. Determining where products will be offered for sale. C. Focusing promotional activities on a new-product release. D. Eliminating products that are slow sellers.
Answer D. Eliminating Products that are slow sellers. The product/service management function follows a product throughout its life cycle, determining when to eliminate slow- selling items.
3.01 9. What is an example of an ethical issue that a product/service manager might face? A. Use of color on the label. B. Use of environmentally friendly packaging. C. Use of packaging as a means of promotion. D. Use of nutrition information on a food label.
Answer B. Use of environmentally friendly packaging. One of the ethical issues that product/service managers face is that of being environmentally friendly. Many businesses changed their packaging due to pressure by customers.
3.01 10. Why should a business continue to monitor an established product? A. To determine the acceptance of a product by a limited market. B. To make sure that a marketing plan is firmly in place. C. to make changes in order to extend a products life cycle. D. To evaluate how a product might fit the firms product mix.
3.01 11. Why is the quality level of a product an important product/service management decision? A. It identifies a products brand. B. It reflects the image of the business. C. It protects consumers. D. It refers to the way the product works.
Answer B. It reflects the image of the business. The quality level of a product is an important part of product/service management because it reflects the image of the business. Product managers must choose not only the image they wish to portray but the level of quality that is appropriate to the products themselves.
3.01 12. What is a technologically advanced method that allows a businesses to produce products that are specialized for a very few customers? A. Intermittent conversion B. Automatic production C. Computerized robotics D. Mass customization
Answer D. Mass customization. Computerization and the technology of mass production have created the method of mass customization which allows businesses to produce customized products for one customer or only a vary few customers.
3.01 13. Why might profits sometimes decline for the company that first introduced the product during the growth stage of a products life cycle? A. Because sales decline in the growth stage. B. Because marketing strategies are adjusted. C. Because competitors have entered the market. D. Because production is more efficient.
Answer C. Because competitors have entered the market. By the time a product reaches the growth stage, there are usually many competitors in the market. This forces producers to lower prices in order to compete for market share.
3.01 14. Why does a company need to know what stage of the product life cycle its products are in? A. To prevent imitators from entering the market. B. To find new uses for the product. C. To predict the length of the life cycle. D. To adapt its marketing strategies.
Answer D. To adapt its marketing strategies. Businesses change their marketing strategies as their products go through the stages of the life cycle. This means that companies need to know where products are in their life cycles in order to use marketing strategies appropriate for each stage.