Answer from the pre-class reading only.Negative marks will be applicable for wrong answers.

Answer in one or two sentences.

Presidency Business School, QUIZ no. 5

Name : Date:

Sem: 1(MKU) Marketing Management

1.What is product Idea ?

2. What is product concept ?

3. How many concepts have been listed with respect to the product idea of food product?4. What is concept testing

5. What do many companies use today to design new products?

1.What is product Idea ?A possible product the company might offer to the market.

2. What is product concept ? An elaborated version of the idea expressed in meaningful consumer terms.

3. How many concepts have been listed with respect to the product idea of food product? 34. What is concept testingInvolves presenting the product concept tp appropriate target consumers and getting their reactions.

5. What do many companies use today to design new products?Customer-driven engineering.

Companies that fail to develop new products are putting themselves at great risk.

Their existing products are vulnerable to changing customer needs and tastes, new technologies, shortened product life cycles and increased foreign & domestic competition.

At the same time new-product development is risky.

New products are failing at a very high rate.

What are the reasons to fail ?

1. Executive pushes inspite of negative market research findings

2. The idea is good but the market size is overestimated

3. The product is not well designed4. The product is not positioned properly5. Development costs are higher than

planned6. Competitors fight back harder

Other reasons hinder new product development

1. Shortage of ideas2. Fragmented markets3. Social and governmental constraints4. Costlinesws of the developmental

process5. Capital shortages6. Faster required development time:

Concurrent-new product development7. Shorter product life cycle

What is a brand ? American Marketing Association defines a

brand as follows:Brand is• A name• A term• A sign• A symbol• A design or a combination of all these intended

to identifyand differentiate from competition

A brand is a complex symbol that can convey up to six levels of meanings and there is a two way rub- off between the brands and the meanings

• Attributes• Benefits• Values• Culture• Personality• User

1. Expensive, cheap, durable, strong - Attributes2. Translates into functional benefits – Expensive-

makes mefeel important and prestigious - Benefits3. Mercedes – safety, prestige, very high social

status -Values4. Japanese – hardworking, industrious - Culture5. Mercedes – no nonsense, efficient - Personality6. Mazda – young user , upcoming executive,

Mercedes-MD, Chairman – User

A Branding is the art and cornerstone of marketing.

Brand EquityBrands vary in the amount of power

and value they have in the marketplace.

Brand awarenessBrand AcceptabilityBrand PreferenceBrand Loyalty.Brand equity is related to how many customers

are satisfied and devoted to the brand

Branding decision: To brand or not to brand.

Today hardly anything goes unbranded. Even salt oranges etc.

Advantages of branding:1. Easier for the seller to process

orders and track down problems2. Legal protection of unique product

features3. To attract loyal and profitable set

of customers. Brand loyalty provides protection from competition.

4. Branding helps the seller segment markets.

5. Strong brands help build the corporate image, making it easier to launch new brands and gain acceptance by distributors and consumers.