MKT 202 Final Exam QA Suggestions

MKT 202
Preparation Questions for Final Exam
Chapter 8
1. Discuss the four types of consumer products with examples.

(Convenience, Shopping, Specialty and Unsought)
Convenience products
A consumer product that customers usually buy frequently, immediately, and with minimal
comparison and buying effort.
• Consumer usually buys frequently, immediately and with minimal comparison and
buying effort.
• Low Price
• Widespread distribution, readily available
• Mass promotion by producer
• Example: laundry detergent, candy, magazines
Shopping products
A consumer product that the customer, in the process of selecting and purchasing, usually
compares on such attributes as suitability, quality, price and style.
• Purchased less frequently than convenience products
• Consumer spend time and effort in gathering information and making comparisons.
• Higher than convenience good pricing
• Selective distribution in fewer outlets
• Provide greater sales support to help customers in purchase decisions
• Examples: furniture, home appliances, tour packages
Examples of shopping products include cars, home appliances, clothes, etc.
Specialty products
A consumer product with unique characteristics or brand identification for which a significant
group of buyers is willing to make a special purchase effort.
• Unique characteristics or brand identifications
• Specialty goods have few reasonable substitutes so consumers put forth a special effort to
purchase them.
• High Price
• Exclusive Distribution
• Carefully targeted promotion by producers and resellers
• Example: Tiffany jewelry, Rolex watches, Lamborghini automobiles
Examples of specialty products are luxury goods, fancy cars, priceless paintings, etc.
Unsought products
A consumer product that the consumer either does not know about or knows about but does not
normally consider buying.
• Major innovations are unsought until consumers become aware through marketing.
• Aggressive advertising and personal selling by producers and resellers.
• Examples: Car-towing services, Funeral Services, Blood Donations, Insurance
2. Discuss the four types of brand sponsorships with examples. (National

Brand, Store Brand, Licensed Brand and Co-Branding)
National Brand (or manufacturer’s brand), when the company or manufacturer sell their output
under their own brand names
Ex. Sony Bravia HDTV, Samsung Galaxy Tablet, Kellogg’s Frosted Flakes
Store brand (or private brand)- A brand created or owned by a reseller. The manufacturer may
sell to resellers who give the product a private brand.
Ex: Debenhams in UK sells clothing brands such as Karen Millen, Coast, Warehouse and Oasis,
Dorothy Perkins, Wallis and Burton brands. The retail brand “Iconic” sells Aghanoor dresses.
Licensed brands Some companies license names or symbols previously created by other
manufacturers, names of well-known celebrities or characters from popular movies and books.
This avails instant and proven brand names for a fee.
Co-Branding The practice of using the established brand names of two different companies on
the same product.
3. Discuss the brand development strategies with examples. (Line

Extension, Brand Extension, Multibrands and New Brands)
Line extension
Extending an existing brand name to new forms, colors, sizes, ingredients, or flavors of an
existing product category
*Low cost, low risk to introduce new products
*Meet consumer desires for variety, use, excess capacity or to command more shelf space
Ex – Dove shop
Brand extension
Extending an existing brand name to new product categories.
*Many new products are an extension of already successful brand.
*It can build immediate familiarity and acceptance at lower development costs.
Ex – All dove products
Multibrands
Many different brands for a given product.
**Multibranding offers a way to establish different features that appeal to different customer
segments, lock up more reseller shelf space, and capture a larger market share.
**A drawback is that companies may end up spreading its resources over many brands instead of
building few brands to a highly profitable level.
EX – Pepsi, 7up, Dew
New Brands
Creating a new brand name when entering a new category for which none of its current brand
names is appropriate. Ex Pran, Rfl
Chapter 9
4. Discuss the five stages of product life cycle. (Product development,

Introduction, Growth, Maturity and Decline)
Product development begins when the company finds and develops a new-product idea. During
this stage the sale is zero, and the company's investment cost is high.
Introduction is the period of slow sales growth as the product is introduced in the market. Profit
are non-existent because of heavy expenses of the product introduction.
Growth is a period of rapid market acceptance and increasing profit.
Maturity is a period of slowdown on sales growth because the product has achieved acceptance
by most potential buyers. Profit levels off or declines because of increased marketing outlays to
defend the product against competitors.
Decline is the period when sales fall off and profit drops.
Chapter 10
5. Define “Value-based Pricing” and “Cost-based Pricing”. Discuss the four

stages of each approach.
Chapter 15
6. Discuss any five of the advertisement message execution styles with

examples.
Slice of life: This style shows one or more “typical” people using the product in a normal setting.
Ex – Aquafina, Nutella
Lifestyle: This style shows how a product fits in with a particular lifestyle. Ex – XBOXONE,
Beyond
Fantasy: This style creates a fantasy around the product or its use. Ex- Fantasy Samsung Tv ad,
Mood or image: This style builds a mood or image around the product or service, such as
beauty, love, intrigue, or serenity. Ex – Black jack Fiat Car
Musical: This style shows people or cartoon characters singing about the product. Ex: Nescafe
Personality symbol: This style creates a character that represents the product. The character
might be animated. Ex- Mr. clean, koodo,
Technical expertise: This style shows the company’s expertise in making the product. Ex -
BSRM
Scientific evidence: This style presents survey or scientific evidence that the brand is better or
better liked than one or more other brands. Ex - Charmin
Testimonial evidence or endorsement: This style features a highly believable or likable source
endorsing the product. It could be ordinary people saying how much they like a given product.
Ex- Consumer Testimonial - Dove
Chapter 16
7. Discuss any five forms of consumer promotions with examples.

(Samples, Coupons, Price Packs, Premiums, Cash Refunds/ Rebates,
Sweepstakes)
Samples are offers of a trial amount of a product.

Sampling is the most effective but most expensive way to introduce a new product or create new
excitement for an existing one.
Some samples are free; for others, the company charges a small amount to offset its cost.
Example: Armani perfume tester; Milk coffee mini-pack.
Coupons
Coupons are certificates that give buyers a saving when they purchase specified products.
Coupons can promote early trial of a new brand or stimulate sales of a mature brand.
Example: Mobile text coupons: show this text to the counter and get 20% off on all shopper’s
world items. Argos.
Price Packs
Price Packs offers consumers savings off a regular price of a product.
Price packs can be single packages sold at a reduced price (such as two for the price of one) or
two related products banded together (such as a toothbrush and toothpaste)..
Premium
Premiums are goods offered either for free or at a low price as an incentive to buy a product.
A premium may come inside the package (in-pack), outside the package (on-pack), or through
the mail.
Example: Hair Dryer free with Dove Shampoo; Tissue roll free with Shakti, McDonald’s Happy
Meal Avatar
Cash refunds
Cash refunds (or rebates) are like coupons except that the price reduction occurs after the
purchase rather than at the retail outlet.
Example: Bkash cashback offers Demonstration
Sweepstakes: When the consumer buys a product/service, they submit their names for a draw to
win something.
Example: “POND’s Age Miracle – My second Honeymoon”.

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MKT 202

Preparation Questions for Final Exam

1. Discuss the four types of consumer products with examples.

2. Discuss the four types of brand sponsorships with examples. (National

3. Discuss the brand development strategies with examples. (Line

4. Discuss the five stages of product life cycle. (Product development,

5. Define “Value-based Pricing” and “Cost-based Pricing”. Discuss the four

6. Discuss any five of the advertisement message execution styles with

7. Discuss any five forms of consumer promotions with examples.

Samples are offers of a trial amount of a product.

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