Archive for August 2021

Identify the five main characteristics that affect the diffusion of innovations. Describe each and provide an example.

Identify the five main characteristics that affect the diffusion of innovations. Describe each and provide an example.



Student answers will vary. Five characteristics influence an innovation's rate of adoption. We consider them for digital video recorders (DVRs) for home use, as exemplified by TiVo.


1. Relative advantage — the degree to which the innovation appears superior to existing products. The greater the perceived relative advantage of using a DVR, say, for easily recording favorite shows, pausing live TV, or skipping commercials, the more quickly it was adopted.

2. Compatibility — the degree to which the innovation matches consumers' values and experiences. DVRs are highly compatible with the preferences of avid television watchers.

3. Complexity — the degree to which the innovation is difficult to understand or use. DVRs are somewhat complex and therefore took slightly longer to penetrate into home use.

4. Divisibility — the degree to which the innovation can be tried on a limited basis. This provided a sizable challenge for DVRs — sampling could occur only in a retail store or perhaps a friend's house.

5. Communicability — the degree to which the benefits of use are observable or describable to others. The fact that DVRs have some clear advantages helped create interest and curiosity.

Other characteristics that influence the rate of adoption are cost, risk and uncertainty, scientific credibility, and social approval.

A customer survey at a mall revealed that Zoe is considered to be an early adopter. What does this mean?

A customer survey at a mall revealed that Zoe is considered to be an early adopter. What does this mean?



Answer: Early adopters are opinion leaders who carefully search for new technologies that might give them a dramatic competitive advantage. They are less price sensitive and willing to adopt the product if given personalized solutions and good service support.

What is the consumer-adoption process? What are the various steps in the process?

What is the consumer-adoption process? What are the various steps in the process?



The consumer-adoption process is the mental steps through which an individual passes from first hearing about an innovation to final adoption. The steps are the following:


1. Awareness: The consumer becomes aware of the innovation but lacks information about it.

2. Interest: The consumer is stimulated to seek information about the innovation.

3. Evaluation: The consumer considers whether to try the innovation.

4. Trial: The consumer tries the innovation to improve his or her estimate of its value.

5. Adoption: The consumer decides to make full and regular use of the innovation.

Relative advantage of an innovation refers to the degree to which ________.

Relative advantage of an innovation refers to the degree to which ________.



A) it matches the values and experiences of the individuals

B) it is difficult to understand or use

C) it can be tried on a limited basis

D) it appears superior to existing products

E) the benefits of use are observable or describable to others



Answer: D

Joseph, a student of Columbia University, finds many of his classmates have purchased an iPad tablet from Apple. The iPad, launched a few months before has been identified as a very useful product and many students in the US have rated it highly. Considering all these, Joseph also decides to purchase an iPad. Which of the following is the adopter group to which Joseph belongs?

Joseph, a student of Columbia University, finds many of his classmates have purchased an iPad tablet from Apple. The iPad, launched a few months before has been identified as a very useful product and many students in the US have rated it highly. Considering all these, Joseph also decides to purchase an iPad. Which of the following is the adopter group to which Joseph belongs?



A) early adopter

B) innovator

C) late majority

D) laggard

E) early majority



Answer: E

Jason is a technology enthusiast who is happy to conduct alpha and beta testing and report on early weaknesses of consumer electronics products. He is most likely to fall in the ________ adopter category.

Jason is a technology enthusiast who is happy to conduct alpha and beta testing and report on early weaknesses of consumer electronics products. He is most likely to fall in the ________ adopter category.



A) late majority

B) early

C) early majority

D) innovator

E) laggard



Answer: D

Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) systems mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.

Troma Inc. is a famous manufacturer of cookware that follows a traditional distributor-retailer system to distribute its products. The company abstains from the use of automated supply chain management (SCM) systems mainly due to the fear of unknown. However, rapidly escalating operational costs and inefficiencies have made it necessary for the company to implement an SCM system. The company goes for a big-bang installation of SCM system to become more competitive and cost effective. Identify the adopter group to which Troma belongs.



A) innovator

B) early adopter

C) early majority

D) laggard

E) late majority



Answer: D

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?

Armordo is a famous vacuum cleaner brand in Africa. Clara has heard of Armordo and she knows that the product is a success. She has started considering whether or not to buy the vacuum cleaner. What stage of the consumer-adoption process is Clara in?



A) awareness

B) adoption

C) evaluation

D) trial

E) interest



Answer: C

Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with other Wi-Fi enabled devices. Robert visits the company's Web site to read more about the phone. Robert is in the ________ stage of consumer-adoption process.

Robert has heard about the latest cell phone from LG Electronics that features Wi-Fi hotspot technology. Wi-Fi hotspot is a technology that allows users to share mobile internet with other Wi-Fi enabled devices. Robert visits the company's Web site to read more about the phone. Robert is in the ________ stage of consumer-adoption process.



A) interest

B) awareness

C) evaluation

D) trial

E) adoption



Answer: A

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. The company has plans to enter developing markets such as Brazil and India. TechToys, GameTech's major competitor has already started operations in India. GameTech decides to delay its entry to India and to closely observe TechToys' operations in India. What is the possible rationale behind this delaying decision?

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. The company has plans to enter developing markets such as Brazil and India. TechToys, GameTech's major competitor has already started operations in India. GameTech decides to delay its entry to India and to closely observe TechToys' operations in India. What is the possible rationale behind this delaying decision?



Answer: GameTech is using the late entry strategy. The firm will delay its launch until after the competitor has borne the cost of educating the market. It can also avoid the mistakes that TechToys make. The company can also learn the size of the market.

Mobile phone company HCF delayed the introduction of a new cell phone model with innovative features so that the launch could coincide with that of its competitor, LCM, which was introducing a phone with similar features. What kind of entry did HCF use? How can this benefit the company?

Mobile phone company HCF delayed the introduction of a new cell phone model with innovative features so that the launch could coincide with that of its competitor, LCM, which was introducing a phone with similar features. What kind of entry did HCF use? How can this benefit the company?



Answer: HCF used a parallel entry strategy. The market may pay more attention when two companies are advertising the new product.

What is the significance of performing business analysis?

What is the significance of performing business analysis?



Answer: Business analysis is performed to study a proposal's business attractiveness. Management prepares sales, cost, and profit projections to determine whether they satisfy company objectives.

Briefly explain the three choices available to companies when deciding the timing of market entry.

Briefly explain the three choices available to companies when deciding the timing of market entry.



Companies face three choices when deciding the timing.


1. First entry: The first firm entering a market usually enjoys the "first mover advantages" of locking up key distributors and customers and gaining leadership. But if rushed to market before it has been thoroughly debugged, the first entry can backfire.

2. Parallel entry: The firm might time its entry to coincide with the competitor's entry. The market may pay more attention when two companies are advertising the new product.

3. Late entry: The firm might delay its launch until after the competitor has borne the cost of educating the market, and its product may reveal flaws the late entrant can avoid. The late entrant can also learn the size of the market.

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?

Poga International, a multinational beverage corporation identifies that one of its competitors is launching an apple flavored drink. The company decides to launch an apple flavor brand along with its competitor. What timing strategy is used here?



A) first entry

B) blunt entry

C) parallel entry

D) late entry

E) exchange entry



Answer: C

For a frequently purchased new product, the seller estimates repeat sales as well as first-time sales. A high rate of repeat purchasing means customers ________.

For a frequently purchased new product, the seller estimates repeat sales as well as first-time sales. A high rate of repeat purchasing means customers ________.



A) value price more than differentiation

B) do not support innovation on brands

C) value differentiation more than price

D) prefer personalized products rather than standard ones

E) are satisfied with the product



Answer: E

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. Some top managers want to collect sales-wave research, but others disagree, offering several disadvantages. List these disadvantages.

GameTech International Inc. engages in the design, development, and marketing of interactive electronic bingo systems primarily in the United States. Some top managers want to collect sales-wave research, but others disagree, offering several disadvantages. List these disadvantages.



Answer: Sales-wave research can be implemented quickly, conducted with a fair amount of security, and carried out without final packaging and advertising. However, because customers are preselected, it does not indicate trial rates the product would achieve with different sales incentives, nor does it indicate the brand's power to gain distribution and favorable shelf position.

Caribou Coffee Company Inc. operates coffeehouses primarily in the United States. The company wants to launch a new brand of specialty coffee and it has created a few hypothetical combinations. The company wants to select two of the combinations after obtaining a ranking by customers based on their preference. What concept testing method is suited here?

Caribou Coffee Company Inc. operates coffeehouses primarily in the United States. The company wants to launch a new brand of specialty coffee and it has created a few hypothetical combinations. The company wants to select two of the combinations after obtaining a ranking by customers based on their preference. What concept testing method is suited here?



Answer: The company can use conjoint analysis, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

Explain the concepts of sales-wave research and simulated test marketing.

Explain the concepts of sales-wave research and simulated test marketing.



Answer: In sales-wave research, consumers who initially try the product at no cost are reoffered it, or a competitor's product, at slightly reduced prices. The offer may be made as many as five times (sales waves), while the company notes how many customers select it again and their reported level of satisfaction. 


During simulated test marketing, 30-40 qualified shoppers are asked about brand familiarity and preferences in a specific product category and attend a brief screening of both well-known and new TV commercials and print ads. One ad advertises the new product but is not singled out for attention. Consumers receive a small amount of money and are invited into a store where they may buy items.

What is concept testing? What is its importance? Explain two modern techniques used for concept testing.

What is concept testing? What is its importance? Explain two modern techniques used for concept testing.



Answer: Concept testing means presenting the product concept to target consumers, physically or symbolically, and getting their reactions. The more the tested concepts resemble the final product or experience, the more dependable concept testing is. 


Concept testing of prototypes can help avoid costly mistakes, but it may be especially challenging with radically different, new-to-the-world products. Rapid prototyping can be used to design products on a computer and then produce rough models to show potential consumers for their reactions. Companies are also using virtual reality to test product concepts. Virtual reality programs use computers and sensory devices (such as gloves or goggles) to simulate reality.

Customers of a proposed truck may want a certain acceleration rate, which is a desired customer attribute. Engineers can turn this into the required horsepower and other engineering attributes through a process known as alpha testing.

Customers of a proposed truck may want a certain acceleration rate, which is a desired customer attribute. Engineers can turn this into the required horsepower and other engineering attributes through a process known as alpha testing.



Answer: FALSE

In response to a short-term oversupply of wine in the marketplace, the makers of Kendall-Jackson developed two new brands by using rapid prototyping — designing products on a computer and producing rough models to show potential consumers for their reactions — to quickly bring its ideas to life.

In response to a short-term oversupply of wine in the marketplace, the makers of Kendall-Jackson developed two new brands by using rapid prototyping — designing products on a computer and producing rough models to show potential consumers for their reactions — to quickly bring its ideas to life.



Answer: TRUE

During ________ testing, the company's technical people observe how customers use the product, a practice that often exposes unanticipated problems of safety and servicing and alerts the company to customer training and servicing requirements.

During ________ testing, the company's technical people observe how customers use the product, a practice that often exposes unanticipated problems of safety and servicing and alerts the company to customer training and servicing requirements.



A) beta

B) research

C) sales-wave

D) alpha

E) simulated



Answer: A

Which of the following is an advantage of sales-wave research?

Which of the following is an advantage of sales-wave research?


A) It gives surprisingly accurate results on advertising effectiveness.

B) It allows the brand to gain favorable shelf position.

C) It guarantees immediate brand recognition and high sales volume.

D) It can be implemented quickly with a fair amount of security.

E) It easily creates a buzz in the minds of customers.



Answer: D

A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers. Later it offers the product to the customers at a discounted price and observes that not only more than seventy percent of the customers are purchasing it but the same number are also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count of the number of people purchasing the product repeatedly. Which of the following testing methods is being used here?

A large FMCG company decides to test market Kora, a new brand of face cleanser, to be launched soon. The company initially distributes a few free samples to some prospective consumers. Later it offers the product to the customers at a discounted price and observes that not only more than seventy percent of the customers are purchasing it but the same number are also satisfied using it. The company keeps using this process 3-4 times to obtain a correct count of the number of people purchasing the product repeatedly. Which of the following testing methods is being used here?



A) simulated testing

B) controlled testing

C) full test marketing

D) parallel testing

E) sales-wave research



Answer: E

Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use?

Which of the following methodologies takes the list of desired customer attributes (CAs) generated by market research and turns them into a list of engineering attributes (EAs) that engineers can use?



A) quality control processes

B) quality function deployment

C) rapid prototyping

D) marketing control

E) control system formation



Answer: B

The highest loss a project can create is called ________.

The highest loss a project can create is called ________.



A) rapid prototyping income

B) payback income

C) maximum investment exposure

D) incremental yearly exposure

E) cannibalized income



Answer: C

The trade-off approach may be easier to use when there ________.

The trade-off approach may be easier to use when there ________.



A) are many variables

B) are only a few alternatives

C) are observers that are biased

D) are possible offers that are limited

E) is only one highly desirable solution



Answer: A

Universal Services Inc. provides communication services to residential and business customers in rural and small urban communities primarily in northern England. The company offers services such as local and long distance voice, data, and Internet and broadband product offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to provide special voice and data packages to its customers. The company designs eight different packs that offer varying voice and data benefits to customers. The company then asks a few of its customers to rank the packs in order to choose two best packs. Which of the following testing methods is being used in this scenario?

Universal Services Inc. provides communication services to residential and business customers in rural and small urban communities primarily in northern England. The company offers services such as local and long distance voice, data, and Internet and broadband product offerings. The company, in an attempt to increase the attractiveness of its offerings, decides to provide special voice and data packages to its customers. The company designs eight different packs that offer varying voice and data benefits to customers. The company then asks a few of its customers to rank the packs in order to choose two best packs. Which of the following testing methods is being used in this scenario?



A) virtual reality testing

B) conjoint analysis

C) perceptual mapping

D) product fabrication

E) rapid prototyping



Answer: B

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.

Consumer preferences for alternative product concepts can be measured through ________, a method for deriving the utility values that consumers attach to varying levels of a product's attributes.



A) concept testing

B) perceptual mapping

C) gap level analysis

D) conjoint analysis

E) morphological analysis



Answer: D

Brown & Smith Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Before approving a new design, the company draws it on a computer and then produces models to show potential consumers and get their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here.

Brown & Smith Inc. engages in the design, development, making, and retail selling of designer jewelry in North America. Before approving a new design, the company draws it on a computer and then produces models to show potential consumers and get their reactions. This allows the company to analyze the possible customer reaction. Identify the concept testing method used here.



A) conjoint analysis

B) perceptual mapping

C) virtual reality testing

D) rapid prototyping

E) digital fabrication



Answer: D

What are some of the ways a firm can draw new ideas from its customers?

What are some of the ways a firm can draw new ideas from its customers?



Answer: Forming a brand community; using Web sites for new ideas, including feedback forms and specialized search engines like Technorati and Daypop to find blogs and postings relevant to their businesses; using a customer advisory board; observing how customers are using its products and asking customers about their dream products are all ways to get new ideas from customers.

What is a brand-positioning map?

What is a brand-positioning map?



Answer: A brand-positioning map is a perceptual map showing the current positions of various existing brands competing with each other.

A group of young students run an Internet center. In an attempt to increase their profitability they start a cafe alongside the existing business. Explain the type of marketing used here.

A group of young students run an Internet center. In an attempt to increase their profitability they start a cafe alongside the existing business. Explain the type of marketing used here.



Answer: Lateral marketing is used here. It combines two product concepts or ideas to create a new offering.


Use reverse assumption analysis to analyze a school.

Use reverse assumption analysis to analyze a school.



Answer: Student answers will vary. Instead of assuming that a school is a place where teachers teach according to a set syllabus and timetable, you could assume that a school is a place where students choose what they want to learn and how they want to learn it. Students could choose people to teach them, depending on what they want to study.

Horon Furniture is a manufacturer of office furniture. The company is known for its innovative multipurpose furniture. When designing a new product, the designers list several ideas and consider each in relationship to others. For example, the company considers various options such as an office table, foldable chairs, and filing cabinet, etc. Finally, the company may come up with a foldable office table with chairs attached and with a filing cabinet. Describe the creativity technique used at Horon Furniture.

Horon Furniture is a manufacturer of office furniture. The company is known for its innovative multipurpose furniture. When designing a new product, the designers list several ideas and consider each in relationship to others. For example, the company considers various options such as an office table, foldable chairs, and filing cabinet, etc. Finally, the company may come up with a foldable office table with chairs attached and with a filing cabinet. Describe the creativity technique used at Horon Furniture.



Answer: The company uses forced relationship techniques. This method lists several ideas and considers each in relationship to each of the others.

What is crowdsourcing?

What is crowdsourcing?



Answer: Crowdsourcing means inviting the Internet community to help create content or software, often with prize money or a moment of glory as an incentive.

Explain three techniques for stimulating creativity to generate better ideas.

Explain three techniques for stimulating creativity to generate better ideas.



Answer: The following are some of the techniques. Students may explain any three of these techniques.

• Attribute listing: List the attributes of an object, such as a screwdriver. Then modify each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on.

• Forced relationships: List several ideas and consider each in relationship to each of the others.

• Morphological analysis: Start with a problem, such as "getting something from one place to another via a powered vehicle." Now think of dimensions, such as the type of platform (cart, chair, sling, bed), the medium (air, water, oil, rails), and the power source (compressed air, electric motor, magnetic fields). By listing every possible combination, you can generate many new solutions.

• Reverse assumption analysis: List all the normal assumptions about an entity and then reverse them. Instead of assuming that a restaurant has menus, charges for food, and serves food, reverse each assumption.

• New contexts: Take familiar processes, such as people-helping services, and put them into a new context.

• Mind mapping: Start with a thought, such as a car, write it on a piece of paper, then think of the next thought that comes up (say Mercedes), link it to the car, then think of the next association (Germany), and do this with all associations that come up with each new word. Perhaps a whole new idea will materialize.

Morboro Energy Inc. is a large chain of fuel stations in Europe. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________.

Morboro Energy Inc. is a large chain of fuel stations in Europe. The company decided to expand its business by incorporating restaurants and automobile service stations as a part of its fuel outlets. This is an example of ________.



A) lateral marketing

B) brand extension

C) market development

D) internal marketing

E) brand personification



Answer: A

A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here?

A group of college graduates decides to start a business. Though they are knowledgeable in various business domains, they are unable to arrive at a valuable business idea. They decide to search for ideas in a structured manner. They meet and start discussing everyone's ideas. Each idea is recorded and then the thoughts that come up in relation to the ideas are written down and discussed. This process helps them to finalize a business plan. What technique is used here?



A) morphological analysis

B) forced relationship analysis

C) reverse assumption analysis

D) attribute listing

E) mind mapping



Answer: E

The ________ creativity technique begins with a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally a new idea materializes by associating all of the thoughts.

The ________ creativity technique begins with a thought that is written down, then proceeds to develop other thoughts that are linked to the first thought, and finally a new idea materializes by associating all of the thoughts.



A) mind mapping

B) contextual analysis

C) attribute listing

D) reverse assumption analysis

E) morphological analysis



Answer: A

Electro Locomotors (EL) Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Brazil. Bono, a hybrid car brand that the company produces, is a market leader in the hybrid vehicles segment. With the increased global focus on nature-friendly vehicles and governmental subsidies for companies that manufacture hybrid vehicles, competition has increased for flex-fuel cars like Bono. The heads of the R&D team at EL are in a creative session to generate ideas for improvements to Bono. They consider each part of the car and discuss the possibilities of improvements in each of them. Identify the creativity technique used here.

Electro Locomotors (EL) Inc. engages in the manufacture, distribution, and marketing of custom vehicles in Brazil. Bono, a hybrid car brand that the company produces, is a market leader in the hybrid vehicles segment. With the increased global focus on nature-friendly vehicles and governmental subsidies for companies that manufacture hybrid vehicles, competition has increased for flex-fuel cars like Bono. The heads of the R&D team at EL are in a creative session to generate ideas for improvements to Bono. They consider each part of the car and discuss the possibilities of improvements in each of them. Identify the creativity technique used here.



A) attribute listing

B) forced relationship analysis

C) morphological analysis

D) reverse assumption analysis

E) mind mapping



Answer: A

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called ________.

In an attempt to improve the product, a company that manufactures screwdrivers discusses the modification of each attribute, such as replacing the wooden handle with plastic, providing torque power, adding different screw heads, and so on. This creativity technique is called ________.



A) attribute listing

B) mind mapping

C) morphological analysis

D) lateral analysis

E) reverse analysis



Answer: C

Many people believe that customer focus does not help to create better, or new, products. This belief rests on which of the following ideas?

Many people believe that customer focus does not help to create better, or new, products. This belief rests on which of the following ideas?



A) Such new product developments decrease the chances of success.

B) Customers do not consider the cost of design when making suggestions.

C) Customers are at times unaware of what they really want.

D) It increases the cost of testing a product or service.

E) Having too much customer focus leads to a negative brand image.



Answer: C

Companies such as Edison Nation and the Big Idea Group have sprung up to tap into ________ possibilities, often combining its own design, branding, engineering, and sales teams with online participants, forming a community for devising new products.

Companies such as Edison Nation and the Big Idea Group have sprung up to tap into ________ possibilities, often combining its own design, branding, engineering, and sales teams with online participants, forming a community for devising new products.



A) stage-gating

B) cocreation

C) microstocking

D) buzzing

E) crowdsourcing



Answer: E

What are the benefits of brainstorming? How would one run an effective brainstorming session?

What are the benefits of brainstorming? How would one run an effective brainstorming session?



Answer: If done correctly, group brainstorming sessions can create insights, ideas, and solutions that would have been impossible without everyone's participation. If done incorrectly, they are a painful waste of time that can frustrate and antagonize participants. To ensure success, experts recommend the following:

• A trained facilitator should guide the session, and the right physical environment must be used.

• The right participants must be chosen. Sometimes it is useful to have a real mixture with many different points of view.

• Participants must see themselves as collaborators working toward a common goal.

• Rules need to be set up and followed so conversations don't get off track. Some structure is needed, though flexibility is desired too.

• Participants must be given proper background preparation and materials so they can get into the task quickly.

• Individual sessions before and after the brainstorming can be useful for thinking and learning about the topic ahead of time and for reflecting afterward on what happened.

• During the session, each participant must be encouraged to participate and think freely and constructively. It may be useful to give participants time to think and gather their thoughts based on what they have heard.

• To help stimulate thinking, participants may be told to identify and challenge existing assumptions, role-play some aspect of the situation they are analyzing, or consider borrowing ideas from other firms, even outside the industry.

• Brainstorming sessions must lead to a clear plan of action and implementation so the ideas that materialize can provide tangible value.

• Brainstorming can do more than just generate ideas — it should help build teams and leave participants better informed and energized.

What is a spiral development process?

What is a spiral development process?



Answer: A spiral development process recognizes the value of returning to an earlier stage to make improvements before moving forward.

Interno Computers Inc., together with subsidiaries, designs, manufactures, and markets personal computers and mobile communication and media devices, as well as sells related software, services, peripherals, networking solutions, and applications worldwide. The company is planning to launch a high-end portable digital music player worldwide. What is the best way to organize this product launch?

Interno Computers Inc., together with subsidiaries, designs, manufactures, and markets personal computers and mobile communication and media devices, as well as sells related software, services, peripherals, networking solutions, and applications worldwide. The company is planning to launch a high-end portable digital music player worldwide. What is the best way to organize this product launch?



Answer: Large companies, like Interno, often establish a new-product department headed by a manager with substantial authority and access to top management whose responsibilities include generating and screening new ideas, working with the R&D department, and carrying out field testing and commercialization. This model is necessary here as the product is going to be launched worldwide.

Dormentor Inc. produces, converts, and markets packaging products including boxboard, container board, and numerous other specialty packaging products. In an attempt to increase its organic growth, the company decides to introduce new products. It asks the managers and employees to send in ideas for new products. Before launching products based on any of these ideas, what are the stages that the company has to go through?

Dormentor Inc. produces, converts, and markets packaging products including boxboard, container board, and numerous other specialty packaging products. In an attempt to increase its organic growth, the company decides to introduce new products. It asks the managers and employees to send in ideas for new products. Before launching products based on any of these ideas, what are the stages that the company has to go through?



Answer: The following are the steps that Dormentor has to go through before launching:

1. It must screen the ideas that are obtained.

2. The ideas that pass the screening should be concept tested.

3. After concept testing a few are screened out and the remaining should be placed for product development.

4. After developing the product, product has to be test marketed. Ideas that are successfully test marketed can be launched.

Explain how stage-gate systems are used by companies to manage innovation and new product launches.

Explain how stage-gate systems are used by companies to manage innovation and new product launches.



Answer: Many top companies use the stage-gate system to divide the innovation process into stages, with a gate or checkpoint at the end of each. The project leader, working with a cross-functional team, must bring a set of known deliverables to each gate before the project can pass to the next stage. To move from the business plan stage into product development requires a convincing market research study of consumer needs and interest, a competitive analysis, and a technical appraisal. Senior managers review the criteria at each gate to make one of four decisions: go, kill, hold, or recycle. Stage-gate systems make the innovation process visible to all and clarify the project leaders and team's responsibilities at each stage. The gates or controls should not be so rigid, however, that they inhibit learning and the development of novel products. Many firms have parallel sets of projects working through the process, each at a different stage. Some firms use a spiral development process that recognizes the value of returning to an earlier stage to make improvements before moving forward.

How do companies organize new product development?

How do companies organize new product development?



Answer: Companies handle the organizational aspect of new-product development in several ways. Many assign responsibility to product managers. Some employ new-product managers who report to category managers. A few companies have growth leaders, a full-time job for its most creative and successful managers. Some companies have a high-level management committee charged with reviewing and approving proposals. Large companies often establish a new-product department headed by a manager with substantial authority and access to top management whose responsibilities include generating and screening new ideas, working with the R&D department, and carrying out field testing and commercialization.

Angell Healthcare, the world's largest manufacturer of protective gloves and clothing, adopted a spiral development process, which divided the innovation process into stages with checkpoints at the end of each stage, to develop products that increased overall sales from 4.6 percent to 13 percent in a little over two years.

Angell Healthcare, the world's largest manufacturer of protective gloves and clothing, adopted a spiral development process, which divided the innovation process into stages with checkpoints at the end of each stage, to develop products that increased overall sales from 4.6 percent to 13 percent in a little over two years.



Answer: FALSE

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?

During which of the following stages in new product development decision making do managers analyze if they can find a good thought consumers say they would try?



A) idea generation

B) idea screening

C) business analysis

D) concept development and testing

E) product development and testing



Answer: D

Which of the following questions is answered during the business analysis of ideas?

Which of the following questions is answered during the business analysis of ideas?



A) Will this product meet our profit goals?

B) Have we got a technically and commercially sound product?

C) Can we find a cost-effective, affordable marketing strategy?

D) Can this product meet sales expectations?

E) Can we find a good concept consumers say they would try?



Answer: D

A team formed at Intercom Inc. to generate ideas for new products conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.

A team formed at Intercom Inc. to generate ideas for new products conducts frequent meetings and engages in activities such as mind mapping and brainstorming. Most of the meetings are conducted at informal locations away from office. These workplaces are called ________.



A) skunkworks

B) idea funnels

C) research centers

D) stage-gate systems

E) contextual bases



Answer: A

Intercom Inc., together with its subsidiaries, primarily engages in the generation, transmission, and distribution of electric power in the United States. The company observes that its growth has stagnated over a period of two years. In an attempt to promote growth, it considers adding new features to the existing products and introducing a few new products. The company forms a committee consisting of three top executives, one of the production mangers, a few operational managers, and a representative of the HR department to generate ideas. This team is called a(n) ________ team.

Intercom Inc., together with its subsidiaries, primarily engages in the generation, transmission, and distribution of electric power in the United States. The company observes that its growth has stagnated over a period of two years. In an attempt to promote growth, it considers adding new features to the existing products and introducing a few new products. The company forms a committee consisting of three top executives, one of the production mangers, a few operational managers, and a representative of the HR department to generate ideas. This team is called a(n) ________ team.



A) virtual

B) venture

C) fundamental

D) elemental

E) transitory



Answer: B

Identify a shortcoming of giving the responsibility to develop new products to the product managers of a company.

Identify a shortcoming of giving the responsibility to develop new products to the product managers of a company.



A) They would not be familiar with the industry standards.

B) Product managers would not have an operational focus.

C) Product managers are often busy managing existing lines.

D) They will find it difficult to gain support from employees.

E) Product managers are less likely to use participative management.



Answer: C

Tosho Electronics, a leading Japanese, electronic manufacturer believes shorter product life cycles of new products reduce the scope for R&D and innovation. Offer a possible reason for shorter life cycles.

Tosho Electronics, a leading Japanese, electronic manufacturer believes shorter product life cycles of new products reduce the scope for R&D and innovation. Offer a possible reason for shorter life cycles.



Student answers will vary. Rivals are quick to copy success of an innovation. An innovative product is copied even before the company recovers the cost of R&D. This leads to shorter life cycles for products.

What practices guide innovation at W. L. Gore?

What practices guide innovation at W. L. Gore?



Answer: First, it works with potential customers. Second, Gore has a distinctly egalitarian culture; it lets employees choose projects and appoints few product leaders and teams. The company likes to nurture "passionate champions" who convince others a project is worth their time and commitment, and leaders have positions of authority because they have followers. Third, all research associates spend 10 percent of their work hours on "dabble time," developing their own ideas. Promising ideas are judged according to a "Real, Win, Worth" exercise: Is the opportunity real? Can we win? Can we make money? Fourth, Gore knows when to let go.

Identify the major reasons why new product failures occur. The following are some of the possible reasons for the failure of new products:

Identify the major reasons why new product failures occur. The following are some of the possible reasons for the failure of new products:



• shortage of important ideas in certain areas

• fragmented markets

• social, economic, and governmental constraints

• high cost of development

• capital shortages

• shorter required development time

• poor launch timing, shorter product life cycles

• organizational support

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?



A) commercializing the product

B) performing concept testing

C) conducting beta testing with customers

D) creating a marketing strategy for the product

E) performing business analysis



Answer: C

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product was a failure. Which of the following is the most likely reason for the product's failure in this case?

Pager, a simple personal device for short messages, became famous in the 1990s. Troveron Communications launched a pager in the early twenty-first century. Due to the introduction of mobile phones and text messaging, the pager industry was on a decline. The company's innovations were not well received by the market and the product was a failure. Which of the following is the most likely reason for the product's failure in this case?



A) poor launch timing of the product

B) a small and fragmented target market

C) high cost of development

D) social and economic constraints

E) hasty product development



Answer: A

It has been observed that most new products have shorter product life cycles. What is the reason for this?

It has been observed that most new products have shorter product life cycles. What is the reason for this?



A) Most new products do not use technology.

B) Most new products are not backed by a marketable idea.

C) New products do not get adequate management support.

D) Social and governmental constraints lead to this failure.

E) Rivals quickly copy products that are successful.



Answer: E

What is incremental innovation? Give an example of incremental innovation.

What is incremental innovation? Give an example of incremental innovation.



Answer: Student answers will vary. Incremental innovation refers to entering new markets by tweaking products for new customers, using variations on a core product to stay one step ahead of the market, and creating interim solutions for industry-wide problems.

When Scott Paper couldn't compete with Fort Howard Paper Co. on price for the lucrative institutional toilet tissue market, it borrowed a solution from European companies: a dispenser that held bigger rolls. Scott made the larger rolls of paper and provided institutional customers with free dispensers, later doing the same thing with paper towels. Scott not only won over customers in a new market; it became less vulnerable to competitors, such as Fort Howard, which could lower prices but weren't offering the larger rolls or tailor-made dispensers.

I-ball, a cell phone manufacturer introduces a cell phone targeted at customers ages 70 and above. It has features such as loud volume, large keys, and so forth. How do you classify this product innovation? What could be a possible disadvantage of this product?

I-ball, a cell phone manufacturer introduces a cell phone targeted at customers ages 70 and above. It has features such as loud volume, large keys, and so forth. How do you classify this product innovation? What could be a possible disadvantage of this product?



Answer: This can be considered a new-to-the-world product. New-to-the-world products are products that create an entirely new market. The product has the greatest cost and risk of all product types.

What does the term organic growth mean?

What does the term organic growth mean?



Answer: Organic growth refers to the development of new products from within.

What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the necessary conditions to create a radically innovative product?

What are the types of new products that a firm can introduce? What are the problems associated with introducing a truly innovative product? What are the necessary conditions to create a radically innovative product?



Answer: New products range from new-to-the-world products that create an entirely new market to minor improvements or revisions of existing products. Most new-product activity is devoted to improving existing products. Truly innovative and new-to-the-world products incur the greatest cost and risk. Although radical innovations can hurt the company's bottom line in the short run, if they succeed they can create a greater sustainable competitive advantage than ordinary products and produce significant financial rewards as a result. Companies typically must create a strong R&D and marketing partnership to pull off a radical innovation. The right corporate culture is another crucial determinant; the firm must prepare to cannibalize existing products, tolerate risk, and maintain a future market orientation. Few reliable techniques exist for estimating demand for radical innovations.

Jill, a Product Manager for Nike, is responsible for evaluating the viability of a radically new product. How should she estimate demand?

Jill, a Product Manager for Nike, is responsible for evaluating the viability of a radically new product. How should she estimate demand?



Answer: Few reliable techniques exist for estimating demand for radical innovations. Focus groups can provide perspective on customer interest and need, but marketers may need a probe-and-learn approach based on observation and feedback of early users' experiences and other means such as online chats or product-focused blogs.

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it uses ________.

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it uses ________.



A) disruptive technologies

B) incremental innovation

C) complex innovations

D) discontinuous innovations

E) radical innovations



Answer: E

Most established companies focus on ________ innovation when they aim to enter new markets by tweaking existing products, or they want to stay one step ahead in the market by using variations on a core product.

Most established companies focus on ________ innovation when they aim to enter new markets by tweaking existing products, or they want to stay one step ahead in the market by using variations on a core product.



A) incremental

B) continuous

C) spontaneous

D) radical

E) competitive



Answer: A

Which of the following is the best example of a new-to-the-world product?

Which of the following is the best example of a new-to-the-world product?



A) Walmart, the retail giant, opens new stores in an underdeveloped African country.

B) Pestorica, a publishing company, decides to launch a new sports magazine.

C) Tata Motors, an Indian automobile company, acquires Jaguar to extend its business.

D) An Asian company licenses a US apparel brand name though the brand is not familiar in Asia.

E) Kids-Med, a company that produces childcare products, launches a non-contact thermometer.



Answer: E

Most new-product activities are devoted to ________.

Most new-product activities are devoted to ________.



A) changing the target markets

B) developing new-to-the-world products

C) introducing backward integration

D) improving existing products

E) changing the existing market dynamics



Answer: D

Which of the following firms is most likely to seek radical innovation?

Which of the following firms is most likely to seek radical innovation?



A) a traditional publishing company

B) a small scale FMCG company

C) a firm that procures and markets wheat

D) a high-tech firm in telecommunications

E) a firm that sells mineral water



Answer: D

New-to-the-world products are ________.

New-to-the-world products are ________.



A) low-cost products designed to obtain an edge in highly competitive markets

B) new product enhancements that supplement established products

C) new versions of an existing product that has been less successful

D) new products that create an entirely new market

E) existing products that are targeted to new geographical markets



Answer: D

What skills and competencies will marketers need to succeed in the future?

What skills and competencies will marketers need to succeed in the future?



Answer: Marketing must become more holistic and less departmental. Marketers must achieve wider influence in the company, continuously create new ideas, and strive for customer insight by treating customers differently but appropriately. They must build their brands more through performance than promotion. They must go electronic and win through building superior information and communication systems. To accomplish these changes and become truly holistic, marketers need a new set of skills and competencies in:

• Customer relationship management (CRM)

• Partner relationship management (PRM)

• Database marketing and data mining

• Contact center management and telemarketing

• Digital marketing and social media

• Public relations marketing (including event and sponsorship marketing)

• Brand-building and brand-asset management

• Experiential marketing

• Integrated marketing communications

• Profitability analysis by segment, customer, and channel

List some of the marketing trends that are likely to emerge in the near future.

List some of the marketing trends that are likely to emerge in the near future.



The coming years will see:


• The demise of the marketing department and the rise of holistic marketing

• The demise of free-spending marketing and the rise of ROI marketing

• The demise of marketing intuition and the rise of marketing science

• The demise of manual marketing and the rise of both automated and creative marketing

• The demise of mass marketing and the rise of precision marketing

If a company has too many products and many are losing money; the company is giving away too many services; and the company is poor at cross-selling products and services, it is a sign that the company's brand-building and communication skills are weak.

If a company has too many products and many are losing money; the company is giving away too many services; and the company is poor at cross-selling products and services, it is a sign that the company's brand-building and communication skills are weak.



Answer: FALSE

Which of the following is NOT a predicted direction for marketing in the coming years?

Which of the following is NOT a predicted direction for marketing in the coming years?



A) the demise of precision marketing and rise of mass marketing

B) the demise of the marketing department and the rise of holistic marketing

C) the demise of marketing intuition and the rise of marketing science

D) the demise of manual marketing and the rise of both automated and creative marketing



Answer: E) the demise of free-spending marketing and the rise of ROI marketing

A

Full costing allocates nontraceable common costs to marketing entities and has three major weaknesses. What are they?

Full costing allocates nontraceable common costs to marketing entities and has three major weaknesses. What are they?



Full costing has three major weaknesses:

1. the relative profitability of different marketing entities can shift radically when we replace one arbitrary way to allocate nontraceable common costs by another

2. the arbitrariness demoralizes managers, who feel their performance is judged adversely

3. the inclusion of nontraceable common costs could weaken efforts at real cost control

What is the full-cost approach of evaluating a marketing entity's performance?

What is the full-cost approach of evaluating a marketing entity's performance?



When evaluating a marketing entity's performance, the major controversy is about whether to allocate the nontraceable common costs to the marketing entity. Such allocation is called the full-cost approach, and its advocates argue that all costs must ultimately be imputed in order to determine true profitability. However, this argument confuses the use of accounting for financial reporting with its use for managerial decision making.

What are direct, traceable common, and nontraceable common costs? Give an example of each.

What are direct, traceable common, and nontraceable common costs? Give an example of each.



Direct costs are costs that we can assign directly to the proper marketing entities, such as materials costs and sales-force salaries. Traceable common costs are incurred indirectly but can be attributed on a plausible basis to various marketing entities, such as rent expenses. Nontraceable common costs are costs whose assignments are highly arbitrary, such as "corporate image" expenditures.

What are the steps involved in marketing profitability analysis?

What are the steps involved in marketing profitability analysis?



The steps involved in marketing profitability analysis are as follows:

Step 1: Identifying functional expenses

Step 2: Assigning functional expenses to marketing entities

Step 3: Preparing a profit-and-loss statement for each marketing entity

Define sale-variance analysis and microsales analysis.

Define sale-variance analysis and microsales analysis.



Answer: Sales-variance analysis measures the relative contribution of different factors to a gap in sales performance. Microsales analysis looks at specific products, territories, and so forth that failed to produce expected sales.

How can a firm periodically reassess its strategic approach to the marketplace?

How can a firm periodically reassess its strategic approach to the marketplace?



Answer: Each company should periodically reassess its strategic approach to the marketplace with a good marketing audit. Companies can also perform marketing excellence reviews and ethical/social responsibility reviews.

What is the purpose of profitability control?

What is the purpose of profitability control?



Answer: The purpose of profitability control is to examine where the company is making and losing money. Companies should measure the profitability of their products, territories, customer groups, segments, trade channels, and order sizes to help determine whether to expand, reduce, or eliminate any products or marketing activities.

What is marketing control? List the four types of marketing control.

What is marketing control? List the four types of marketing control.



Answer: Marketing control is the process by which firms assess the effects of their marketing activities and programs and make necessary changes and adjustments. The four types of needed marketing control are: annual-plan control, profitability control, efficiency control, and strategic control.

What is a marketing audit? Explain the four characteristics of a marketing audit.

What is a marketing audit? Explain the four characteristics of a marketing audit.



A marketing audit is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance. A marketing audit should be:

• comprehensive — it covers all the major marketing activities of a business

• systematic — it is an orderly examination of the organization's macro- and micromarketing environments, marketing objectives and strategies, marketing systems, and specific activities

• independent — outside consultants bring the necessary objectivity, broad experience in a number of industries, familiarity with the industry being audited, and undivided time and attention

• periodic — firms typically initiate marketing audits only after failing to review their marketing operations during good times, with resulting problems. A periodic marketing audit can benefit companies in good health as well as those in trouble

Briefly explain the concept of annual-plan control.

Briefly explain the concept of annual-plan control.



Annual-plan control ensures the company achieves the sales, profits, and other goals established in its annual plan. At its heart is management by objectives. First, management sets monthly or quarterly goals. Second, it monitors performance in the marketplace. 


Third, management determines the causes of serious performance deviations. Fourth, it takes corrective action to close gaps between goals and performance. This control model applies to all levels of the organization. Top management sets annual sales and profit goals; each product manager, regional district manager, sales manager, and sales rep is committed to attaining specified levels of sales and costs. Each period, top management reviews and interprets the results. 


Marketers today have better marketing metrics for measuring the performance of marketing plans. Four tools for the purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.

The manufacturer launches a brand building advertising campaign. The campaign does not promote any one specific car but is aimed at promoting the company as a whole. Which type of cost does this fall under?

The manufacturer launches a brand building advertising campaign. The campaign does not promote any one specific car but is aimed at promoting the company as a whole. Which type of cost does this fall under?



A) direct costs

B) material costs

C) nontraceable costs

D) traceable costs

E) labor costs



Answer: C

Which of the following is true about market share?

Which of the following is true about market share?



A) Outside forces affect all companies in the same way.

B) A company's performance should be judged against the average performance of all companies.

C) A decline in market share does not necessarily mean the company is performing worse than are other companies.

D) A decline in market share cannot be deliberately engineered.

E) All shifts in market share have marketing significance.



Answer: C

To succeed in the future, marketing must ________.

To succeed in the future, marketing must ________.



A) become more holistic

B) build brands through promotion rather than performance

C) be more departmental

D) focus on free-spending

E) rely more on mass marketing



Answer: A

Which of the following is true regarding a marketing audit?

Which of the following is true regarding a marketing audit?



A) It focuses primarily on a firm's macromarketing environment.

B) It identifies the most-needed improvements and incorporates them into a corrective-action plan with short- and long-run steps.

C) It is less effective at locating the real source of a problem than a functional audit.

D) It analyzes only those marketing activities that have failed to produce adequate results.

E) It relies solely on company managers for data and opinions.



Answer: B

A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.

A ________ is a comprehensive, systematic, independent, and periodic examination of a company's or business unit's marketing environment, objectives, strategies, and activities, with a view to determining problem areas and opportunities and recommending a plan of action to improve the company's marketing performance.



A) marketing plan

B) test market

C) marketing audit

D) market-based scorecard analysis

E) marketing metric



Answer: C

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following should you track to ensure that the firm's distribution efficiency is maximized?

Your firm has experienced a decline in sales over the last three quarters. You have traced the problems to distribution inefficiencies. Which of the following should you track to ensure that the firm's distribution efficiency is maximized?



A) average sales per point of sale

B) sales from new products

C) trial rate

D) repurchase rate

E) new customer gains



Answer: A

Which of the following is true regarding annual-plan control?

Which of the following is true regarding annual-plan control?



A) This control process begins by identifying the causes of serious performance deviations.

B) The tools used for this purpose are sales analysis, market share analysis, marketing expense-to-sales analysis, and financial analysis.

C) The marketing controller has the primary responsibility for annual-plan control.

D) Its purpose is to evaluate and improve the spending efficiency and impact of marketing expenditures.

E) It measures profitability by product, territory, customer, segment, trade channel, and order size.



Answer: B

The purpose of strategic control is to ________.

The purpose of strategic control is to ________.



A) examine whether the planned results are being achieved

B) examine where the company is making and losing money

C) evaluate and improve the spending efficiency and impact of marketing expenditures

D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels

E) understand the efficiency of the sales force, advertising, sales promotion, and distribution



Answer: D

The purpose of profitability control is to ________.

The purpose of profitability control is to ________.



A) examine whether the planned results are being achieved

B) examine where the company is making and losing money

C) evaluate and improve the spending efficiency and impact of marketing expenditures

D) examine whether the company is pursuing its best opportunities with respect to markets, products, and channels

E) understand the efficiency of the sales force, advertising, sales promotion, and distribution



Answer: B

IBM lets frontline employees spend up to $5,000 to solve a customer problem on the spot, which is an example of which of the following steps that a marketing CEO can take to create a market- and customer-focused company?

IBM lets frontline employees spend up to $5,000 to solve a customer problem on the spot, which is an example of which of the following steps that a marketing CEO can take to create a market- and customer-focused company?



A) Empower the employees.

B) Hire strong marketing talent.

C) Get outside help and guidance.

D) Install a modern marketing planning system.

E) Develop strong in-house marketing training programs.



Answer: A

As long as finance focuses on short-term profit, it will oppose major investments designed to build satisfied, loyal customers. Which of the following steps that a marketing CEO can take to create a market- and customer-focused company can help a CEO overcome this challenge?

As long as finance focuses on short-term profit, it will oppose major investments designed to build satisfied, loyal customers. Which of the following steps that a marketing CEO can take to create a market- and customer-focused company can help a CEO overcome this challenge?



A) Empower the employees.

B) Get outside help and guidance.

C) Install a modern marketing planning system.

D) Change the company's reward measurement and system.

E) Develop strong in-house marketing training programs.



Answer: D

_______ software provides a set of Web-based applications that automate and integrate project management, campaign management, budget management, asset management, brand management, customer relationship management, and knowledge management.

_______ software provides a set of Web-based applications that automate and integrate project management, campaign management, budget management, asset management, brand management, customer relationship management, and knowledge management.



A) Marketing dashboard

B) Enterprise resource planning

C) Supply chain management

D) Marketing resource management

E) Enterprise campaign management



Answer: D

Give an example of a cognitive social marketing campaign.

Give an example of a cognitive social marketing campaign.



Answer: Cognitive campaigns try to educate and inform people. A cognitive campaign might explain the nutritional value of different foods or demonstrate the importance of conservation.

Define cause-related marketing. What is the difference between cause-related marketing and social marketing?

Define cause-related marketing. What is the difference between cause-related marketing and social marketing?



Answer: Cause-related marketing links the firm's contributions to a designated cause to customers' engaging directly or indirectly in revenue-producing transactions with the firm. Cause-related marketing supports a cause whereas social marketing by nonprofit or government organizations furthers a cause.

Explain the concept of greenwashing along with an example.

Explain the concept of greenwashing along with an example.



Answer: Student answers will vary. Greenwashing gives products the appearance of being environmentally friendly without living up to that promise. An automobile manufacturer who promotes its cars as being environmentally friendly when the company is in fact a major polluter, would be an example of greenwashing.

How can firms promote ethical behavior among their employees?

How can firms promote ethical behavior among their employees?



Companies must adopt and disseminate a written code of ethics, build a company tradition of ethical behavior, and hold their people fully responsible for observing ethical and legal guidelines. Organizations must also ensure that every employee knows and observes relevant laws.

What are some of the forces that are driving companies to practice corporate social responsibility?

What are some of the forces that are driving companies to practice corporate social responsibility?



A number of forces are driving companies to practice a higher level of corporate social responsibility, such as rising customer expectations, evolving employee goals and ambitions, tighter government legislation and pressure, investor interest in social criteria, media scrutiny, and changing business procurement practices.

Identify three key success factors in developing and implementing a social marketing program.

Identify three key success factors in developing and implementing a social marketing program.



Students may choose three of the following key success factors presented in the text:



• choose target markets that are most ready to respond

• promote a single, doable behavior in clear, simple terms

• explain the benefits in compelling terms

• make it easy to adopt the behavior

• develop attention-grabbing messages and media

• consider an education-entertainment approach

Identify some of the brand benefits that can accrue to a company that engages in cause marketing.

Identify some of the brand benefits that can accrue to a company that engages in cause marketing.



A successful cause-marketing program can improve social welfare, create differentiated brand positioning, build strong consumer bonds, enhance the company's public image, create a reservoir of goodwill, boost internal morale and galvanize employees, drive sales, and increase the firm's market value. Consumers may develop a strong, unique bond with the firm running the cause-marketing that transcends normal marketplace transactions. Specifically, cause marketing can build brand awareness, enhance brand image, establish brand credibility, evoke brand feelings, create a sense of brand community, and elicit brand engagement.

What is sustainability? How is it related to the concept of greenwashing?

What is sustainability? How is it related to the concept of greenwashing?



Answer: Sustainability is the ability to meet humanity's needs without harming future generations. It now tops many corporate agendas. Major corporations outline in great detail how they are trying to improve the long-term impact of their actions on communities and the environment. 


Heightened interest in sustainability has also unfortunately resulted in greenwashing, which gives products the appearance of being environmentally friendly without living up to that promise. 


Because of insincere firms jumping on the green bandwagon, consumers bring a healthy skepticism to environmental claims, but they are also unwilling to sacrifice product performance and quality. Many firms are rising to the challenge and are using the need for sustainability to fuel innovation.

The first step in the social marketing planning process is ________.

The first step in the social marketing planning process is ________.



A) determining the focus of the program

B) selecting the target audience

C) setting objectives and goals

D) designing the market offering

E) finding a source of funding



Answer: A

Which of the following should be done to increase the likelihood that social marketing programs will be successful?

Which of the following should be done to increase the likelihood that social marketing programs will be successful?



A) Choose target markets that are the least ready to respond.

B) Promote multiple, doable behaviors in clear, simple terms.

C) Make it easy to adopt the behavior.

D) Adopt a soft sell approach, as opposed to attention grabbing messages.

E) Explain the benefits in an exaggerated manner.



Answer: C

Which of the following represents the objective of a social marketing campaign aimed at changing people's behavior?

Which of the following represents the objective of a social marketing campaign aimed at changing people's behavior?



A) Motivate people with obesity to eat healthy and exercise more often.

B) Change public attitudes and stereotypes associated with people who are obese.

C) Explain the different causes of obesity and how it can be prevented.

D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.

E) Attract people with obesity to sign up for a one-time free medical check up.



Answer: A

Which of the following represents the objective of a social marketing campaign aimed at changing people's values?

Which of the following represents the objective of a social marketing campaign aimed at changing people's values?



A) Motivate people with obesity to eat healthy and exercise more often.

B) Change public attitudes and stereotypes associated with people who are obese.

C) Explain the different causes of obesity and how it can be prevented.

D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.

E) Help people with obesity to implement lifestyle changes.



Answer: B

Which of the following represents the objective of a social marketing campaign aimed at changing people's actions?

Which of the following represents the objective of a social marketing campaign aimed at changing people's actions?



A) Motivate people with obesity to eat healthy and exercise more often.

B) Change public attitudes and stereotypes associated with people who are obese.

C) Explain the different causes of obesity and how it can be prevented.

D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.

E) Help people with obesity to implement lifestyle changes.



Answer: D

Which of the following represents the objective of a cognitive social marketing campaign?

Which of the following represents the objective of a cognitive social marketing campaign?



A) Motivate people with obesity to eat healthy and exercise more often.

B) Change public attitudes and stereotypes associated with people who are obese.

C) Explain the different causes of obesity and how it can be prevented.

D) Encourage people to participate in a walkathon aimed at promoting awareness about obesity.

E) Help people with obesity to implement lifestyle changes.



Answer: C

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