118) What are end-user and vertical-level specialists?
119) Describe a counterfeiter as a market-follower.
120) If your company, which is a market follower, was labeled as an imitator, what would its
primary strategies for meeting competition be?
121) Who is a market-nicher?
122) The market nicher is a specialist. Characterize the end-user specialist role that can be
assumed by the market nicher.
123) What is a product-feature specialist?
124) ________ is the period of slow sales growth and nonexistent profits.
A) Growth
B) Decline
C) Maturity
D) Introduction
E) Stagnancy
125) Campbells is a newly established company that specializes in preparing healthy but tasty
food for children under the age of 5. It is incurring huge production costs, nonexistent profits,
and slow sales growth. The company is in the ________ phase of its life cycle.
A) stagnancy
B) introduction
C) maturity
D) decline
E) growth
126) ________ is a period of rapid market acceptance and substantial profit improvement.
A) Stagnancy
B) Introduction
C) Maturity
D) Decline
E) Growth
127) A dance school in the Bronx teaches professional hip-hop and salsa classes. It is
experiencing an increase in student admissions, which is leading to substantial improvement in
profits. The school is going through the ________ phase of its life cycle.
A) decline
B) stagnancy
C) growth
D) introduction
E) maturity
128) ________ is a slowdown in sales growth because the product has achieved acceptance by
most potential buyers.
A) Obsolescence
B) Introduction
C) Growth
D) Decline
E) Maturity
129) A music school in Boyles Height, LA, specializes in teaching the guitar and the violin.
After a spurt in growth and a few successful years, the school is experiencing a slowdown in
sales and stability in its profits due to an increase in competition. The school is in the ________
stage of its life cycle.
A) introduction
B) growth
C) decline
D) maturity
E) obsolescence
130) During the ________ stage of a product’s life cycle, sales show a downward drift and
profits erode.
A) introduction
B) growth
C) decline
D) obsolescence
E) maturity
131) After a couple of years of successful business, an experimental theatre company based in
Aurora is unable to sell tickets for its theatre shows. They have been using profits from previous
shows to run the business. The company is in the ________ phase of its life cycle.
A) maturity
B) obsolescence
C) introduction
D) growth
E) decline
132) According to Peter Golder and Gerald Tellis, a(n) ________ is the first to develop a
working model of the product.
A) developer
B) creative pioneer
C) market pioneer
D) product pioneer
E) inventor
133) One of the ways to change the course of a brand is to modify the product. Under product
modification, ________ improvement adds size, weight, materials, supplements, and accessories
that expand the product’s performance, versatility, safety, or convenience.
A) feature
B) quality
C) style
D) size
E) technological
134) An alternate way to increase sales volume is to increase the usage rate among users. This
can be done by ________.
A) converting nonusers
B) having consumers use less of the product on each occasion
C) having consumers use the product on more occasions
D) attracting competitors’ customers
E) entering new market segments
135) ________ is a distribution strategy that can be effectively used during the growth stage of
the product life cycle.
A) Building product awareness
B) Phasing out unprofitable outlets
C) Building selective distribution
D) Building intensive distribution
E) Stressing on brand differences
136) An inventor is the first to develop a working model while a product pioneer is the first to
develop patents in a new-product category.
137) An alternate way to increase sales volume is to expand the number of users by converting
nonusers.
138) An alternate way to increase sales volume is to increase the usage rates among users by
entering new market segments.
139) The product strategy during the maturity stage of the product life cycle should be to build
more intensive distribution.
140) Sales of nylon have shown a scalloped PLC pattern because of the many new uses —
parachutes, hosiery, shirts, carpeting, boat sails, automobile tires — discovered over time.
141) During the introduction stage of the product life cycle, firms are likely to use cost-plus
pricing.
142) During the development stage of the product life cycle, the marketing objective is to
maximize profit while defending market share.
143) Bic’s Wite-out phased out unprofitable outlets and reduced communications to the minimal
level needed to retain hard-core loyals because it was in the maturity stage of the product life
cycle.
144) What is fashion?
145) What must a firm do to sustain rapid market share growth?
146) Which are the three ways to change the course for a brand?
147) What are fads?
148) What is the criticism of the product life-cycle concept?
149) Which of the following strategies should be adopted by marketers during a recession?
A) increase investment on marketing existing products
B) focus on expanding the customer base and not on the retention of existing customers
C) focus primarily on price reductions and discounts
D) concentrate on communicating the brand value and product quality to consumers
E) stick to the budget allocations adopted during the preceding years
150) Benz & Frendz Corp., a manufacturer of high end consumer durables, experienced sluggish
sales growth in most of its product categories during three consecutive quarters of 2009.
However, market analysis revealed that its competitors’ sales had also slackened during this
period. Analysts pointed out that when all firms are losing sales, it is extremely important to
adopt strategies that are aimed at retaining customers. This led the firm to reduce operation costs
while maintaining product quality. They also revamped their marketing strategy to focus on the
values created by their products. Which of the following can be inferred from the strategies
adopted by the firm?
A) The company was trying to protect its market share and continue to operate as a market
leader.
B) The company was focusing on geographical expansion.
C) The company was aiming to capture a new market segment.
D) The company was marketing its products amidst an economic downturn.
E) The company was focusing on market penetration.
151) During an economic downturn, the potential value and profitability of some target
consumers may change.
152) Heavy focus on price reductions and discounts during a recession allows firms to improve
long-term brand equity and price integrity.
153) Armani uses a three-tier product line that is differentiated based on style, luxury,
customization, price, and distribution. During the recession, the lower priced, younger, street
savvy third tier, Armani Exchange, picks up the selling slack for the upper tiers, which is in line
with the recommendation to fine-tune brand and product offerings during an economic
downturn.
154) Explain how luxury brands can benefit during an economic recession from having lower-
priced brands or subbrands in their portfolio.
155) List the five guidelines for improving the odds for marketing success in a slow-growth
economy.
156) Explain how Armani uses its brand portfolio approach to maintain profits during recessions.