Marketing Concepts Quiz

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Questions and Answers

Which type of goods are primarily concerned with immediate purchase without deep thought?

Unsought goods

Convenience goods (correct)

Shopping goods

Specialty goods

What category do stocks and bonds fall under according to the product classifications?

Industrial goods

Real property

Consumer goods

Financial property (correct)

What is one characteristic of services that distinguishes them from tangible goods?

They can be owned

They are produced and consumed simultaneously (correct)

They are always purchased in large quantities

They require extensive storage

Which type of goods require more effort in the purchasing process due to higher involvement?

Shopping goods Signup and view all the answers

In what manner do places compete to attract attention?

By developing unique tourism experiences Signup and view all the answers

What is the main purpose of the new product development process?

To react to market signals and ensure growth Signup and view all the answers

Which of the following best describes 'unsought goods'?

Items that depend on advertising for sales Signup and view all the answers

What is a primary factor that can distinguish durable goods from non-durable goods?

Durable goods provide lasting satisfaction Signup and view all the answers

What defines a high-tech product?

Products that reflect current levels of technological advancement. Signup and view all the answers

Which among the following is NOT classified as a mid-tech product?

Satellite systems Signup and view all the answers

What is the main purpose of a product?

To serve as a solution to customers' problems. Signup and view all the answers

What is one of the reasons for developing a new product?

Customers want new products and choices Signup and view all the answers

Which of the following best describes low-tech products?

Products that are the result of minor improvements to existing items. Signup and view all the answers

Which of the following is NOT one of the four major stages of the product development process?

Distribution Signup and view all the answers

Innovation can be defined as:

A positive change in method or technology. Signup and view all the answers

In the idea screening stage, the primary purpose is to:

Eliminate unsound concepts Signup and view all the answers

Which of the following is included in the definition of a product?

A mix of tangible and intangible attributes. Signup and view all the answers

What occurs during the concept stage of product development?

Developing attractive ideas into product concepts Signup and view all the answers

To achieve entrepreneurial success, what must be identified?

Human and social needs, both apparent and dormant. Signup and view all the answers

Which of the following stages directly follows idea generation in the new product development process?

Incubation Signup and view all the answers

Which of the following best illustrates the concept of product technology?

The scientific knowledge applied to create a product. Signup and view all the answers

What is one of the main outcomes of the idea generation stage?

Create a large number of ideas Signup and view all the answers

What step in the product development process involves market tests and planning?

Implementation Signup and view all the answers

Which of these is least likely to contribute to the development of new product ideas?

Sales forecasting Signup and view all the answers

What is the purpose of consumer testing in the product development stage?

To determine consumer reaction to the physical product. Signup and view all the answers

Which of the following is NOT a reason for new product failure?

Effective promotion. Signup and view all the answers

What is the main goal of the test marketing stage?

To increase certainty of successful commercialization. Signup and view all the answers

Which stage involves developing the product concept into a physical product?

Product development. Signup and view all the answers

What should be assessed during the business analysis stage?

Sales, costs, and profit projections. Signup and view all the answers

Which of these is an example of intellectual property protection?

Trademark registrations. Signup and view all the answers

What type of consumer feedback can be gathered during testing?

Responses to product usage in real settings. Signup and view all the answers

Which component is NOT typically included in the initial market strategy development?

Tax implications. Signup and view all the answers

What is a patent primarily granted for?

An invention, product, or process Signup and view all the answers

Which of the following can be protected under copyright?

A song composed by an artist Signup and view all the answers

How long is patent protection valid in Ethiopia?

10 years Signup and view all the answers

What distinguishes trademarks from patents?

Trademarks must be renewed periodically Signup and view all the answers

Which of these is NOT protected under copyright?

A general business strategy Signup and view all the answers

Which of the following statements about trademarks is correct?

Trademarks can be invalidated by cancellation Signup and view all the answers

What type of protection does copyright provide?

Protection for original works of authorship Signup and view all the answers

Which of the following can be patented?

An invention of a new gadget Signup and view all the answers

Study Notes

Chapter Four: Product and Service Concept

Product technology is the application of scientific knowledge to new products, processes, or services. It generates and uses goods and services.
Innovation is a change in method or technology. A positive and useful departure from previous ways of doing things.
Product technology is classified into three categories: high-tech, mid-tech, and low-tech.
High-tech products are state-of-the-art, reflecting current technological advancements. Examples include digital CD players, computerized materials, and satellite systems.
Mid-tech products are commonplace items. Examples include cosmetics, fertilizers and nutrients, publishing materials, power supplies, and fax machines.
Low-tech products are developed from minor modifications or improvements to existing products. Examples include office furniture, plastic toys, clothing, printer ribbons, candy and cookies, and building supplies.

What is a Product?

A product solves customer problems.
A product can be anything offered to the market for attention, acquisition, use, or consumption which fulfills a want or need.
Successful entrepreneurs satisfy and delight customers. This requires producing outstanding products and providing excellent service.
A product is a combination of physical characteristics and how people feel about it.
Products include tangible and intangible attributes like goods, services, ideas, information, places, and people.

Service Characteristics

Intangibility: Services cannot be seen, tasted, felt, heard, or smelled before purchase.
Inseparability: Services cannot be separated from their providers.
Variability: The quality of services depends on who provides them and when, where, and how.
Perishability: Services cannot be stored for later sale or use.

Product Classifications

Products are classified based on durability, tangibility, and the ultimate user.
Durability: Durable (e.g., appliances); Non-durable (e.g., food); Service (e.g., haircuts)
Consumer goods are classified based on convenience, shopping, specialty, and unsought goods.
Industrial goods are classified based on materials and parts, capital items, and supplies and business services.

New Product Development Process

Product development is the process companies use to react to market signals and customer demands. It also involves embracing new technologies and ensuring continued growth.
Reasons for new product development include customer desires for new products, competitor actions, and technological advancements.
The product development process is usually split into five major stages: Idea generation, Idea screening, Concept stage, Market strategy development, Business analysis.
The product development process includes detailed stages like idea generation, incubation, preliminary design, prototyping, actual design, implementation, and diffusion.

Product Stages and Analysis

The idea stage involves brainstorming as many potential ideas for new products as possible, often through basic research.
Idea screening eliminates unsound concepts, quickly identifying good ideas to pursue further.
The concept stage involves testing new ideas with a target group to capture consumer responses while developing the idea into a tangible product concept.
Market strategy development involves a preliminary marketing plan, covering things such as market size, structure, consumer behavior, price, distribution, and budget.
Business analysis involves calculating sales forecasts, costs, profits, and determining if the business idea is financially viable to pursue.
Product development is the engineering stage, making a physical product based on the initial design.
Test marketing determines customer acceptance for products and predicts success in full-scale production.

Product Life Cycle

Product lifecycle shows the phases of a product from introduction to decline in sales over time. Sales increase as people are introduced to the product and then slow as the market becomes saturated and competition emerges. Profits peak during growth and maturity phases and ultimately decline if the product is not modified.

Reasons for New Product Failure

Product failure is often due to inaccuracies in market size estimations, flawed design, poor brand positioning, poor timing, inappropriate pricing strategies, lacking promotion efforts, internal management conflicts, exorbitant development costs, and intense competition.

Product Protection (IP)

Intellectual property is a legal term encompassing ideas, inventions, artistic works, and commercially viable products produced through the inventor’s mental processes. It is protected through methods like patents, copyrights, and trademark registrations.
Patents provide exclusive rights to an invention, offering a new way of doing something or solving a technical problem.
Patents are exclusive properties that can be transferred, sold, or used as collateral. The patenting process also involves disclosure with the government.
Trademarks, unlike patents, require periodic renewal and are distinctive names, symbols, or mottos associated with a product or service.
Copyrights protect original works of authorship, encompassing literary, musical, and artistic creations. Copyrights usually cover a creator's lifespan plus a certain number of years..
Copyrights do not protect an idea but the expression of that idea.

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Description

Test your knowledge of basic marketing concepts and classifications with this quiz. From the types of goods to the characteristics of services, each question will challenge your understanding of marketing principles. Get ready to dive into the world of product classifications and their attributes!