DECA MARKETING CLUSTER CORRECT EXAMS
ANSWERS AND QUESTIONS SET A+
✔✔Identify the impact of the product life cycles on marketing decisions. - ✔✔There are
four stages of the product life cycle: introduction, growth, maturity, and decline.
Depending on the stage in which the product is in, marketer must adjust their product
mix and marketing strategies to ensure continued sales. Different stages of the life cycle
demand different focuses. In the introduction phase, companies focus their efforts on
promotion and production to draw customer attention and increase product awareness
using special promotions. During the growth stage, companies focus on customer
satisfaction and introducing new models to compete against competitors. During the
maturity stage, the company focuses on fighting off the competition and deciding
whether or not to improve the product to gain additional sales. During the decline stage,
management must decide how long it will continue to support the product, when to drop
the product, or what product mix strategies to use (selling or licensing the product,
recommitting to the product line, discounting the product, regionalizing the product,
altering the product).
✔✔Describe the use of technology in the product/service management function. -
✔✔Technology can create opportunities for new products, make production of products
more efficient, make products easier to use, and make products obsolete.
✔✔Explain business ethics in product/service management. - ✔✔Business ethics in
product/service management involves making customers aware of product information
that can affect safety and health when the product is used. E.g. product recalls, allergy
information and labeling, and clear instructions on how to use the good or service.
✔✔Identify product opportunities. - ✔✔Identifying product opportunities uses marketing
information to find problems that can be solved using a product. A product opportunity
exists when there is a gap between what is currently on the market and the possibility
for new or significantly improved products that result from emerging trends. Product
generation then stems from ideas on how to solve the problem. (E.g. devices getting
stolen in cars: compartment to put devices in). New product opportunities can come
from a variety of sources including consumers, competitors, manufacturers,
wholesalers, and internal research and development teams. The use of creativity is an
,inherent part of this process. Ideas can be generated during the market research
process through both customers and competitive analysis. Internal teams may be put
together to evaluate new product decisions including all departments of the business.
✔✔Identify methods/techniques to generate a product idea. - ✔✔New product ideas can
come from a variety of sources: customers, competitors, channel members and
company employees. Focus groups or idea sessions are often used my companies to
involve customers in generating product ideas. In addition, companies that manufacture
consumer packaged goods use a task force approach to new product development.
This approach involves gathering employees from various departments to take a new
concept and run it through the steps of product development. Companies that
manufacture and sell industrial products establish venture teams that develop new
products not part of the existing business.
✔✔Generate product ideas. - ✔✔Tools used to generate product ideas can include
brainstorming, creative thinking processes and problem solving sessions. A company
can generate product ideas by conducting consumer and sales force focus groups.
✔✔Describe the uses of grades and standards in marketing. - ✔✔Standards are
statements that specify a product's size, contents and/or quality. Grades are ratings
assigned to products that indicate to what extent standards are met. Grades and
standards are used to compare and judge different products. They help speed up
consumers' buying decisions because consumers do not need to spend time to inspect
the product. Consumer rely on grades and standards for product information.
✔✔Explain warranties and guarantees. - ✔✔A warranty is a guarantee (often written)
that specific facts or conditions are true or will happen or that a product will work in the
way promised. A guarantee is an agreement assuming responsibility to perform,
execute, or complete something and offering security for that agreement. It is a promise
or an assurance, especially one given in writing, that attests to the quality or durability of
a product or service. Warranties can be implied, express (oral or written), and extended
(costs extra).
✔✔Identify consumer protection provisions of appropriate agencies. - ✔✔Consumers
are protected by both federal and state provisions. The Federal Trade Commission
enforces the Magnuson-Moss Consumer Product Warranty Act that sets minimum
standards for warranties. The Consumer Product Safety Commission monitors product
safety by issuing standards for constructions, testing, packaging and performance. The
Food and Drug Administration enforces the Food, Drug and Cosmetics Act which sets
standards for pure, wholesome and effective products in these categories. States have
various forms of lemon laws and Better Business Bureaus to protect consumers.
✔✔Explain the concept of product mix. - ✔✔A product mix is all the products that a
company makes or sells. This includes the width, length, depth and consistency of the
product mix. Width: total # of lines of products. Length: total # of products in each line.
, Depth: variations of each product (e.g. colour, size). Consistency: similarity between
different products in use, function, etc.
✔✔Describe the nature of product bundling. - ✔✔Marketers may use product bundling
to package two or more complementary goods and services, usually for a lower price
than had the products been purchased separately. For example, if customer goes to the
spa for a manicure and pedicure the price may be lower than if that customer purchased
a manicure and pedicure separately.
✔✔Describe factors used by marketers to position products/services. - ✔✔The focus of
product/service positioning is the image the product/service projects to the public. The
goal is to set the product apart from the competition. Marketers can position products
based on price and quality (focuses on price as in indication of value; high price =
quality, low price = value), features and benefits (focuses on effectiveness and use) and
in relation to competition or other products in the line (compares benefits of product to
others).
✔✔Explain the nature of product/service branding - ✔✔Product/service branding is how
a product interacts with its customers through design, logo and messaging and how its
distinguishes itself from competitors. Branding can identify one product, a family of
products, or all products of a company. Brands connote various benefits, (e.g. quality
and reliability or fun and excitement.) The importance of branding is to build product
recognition and customer loyalty, ensure quality and consistency, and capitalize on
brand exposure.
✔✔Explain the nature of corporate branding. - ✔✔Corporate branding refers to the
practice of promoting the brand name of a corporate entity, as opposed to specific
products or services. The activities and thinking that go into corporate branding are
different from product and service branding because the scope of a corporate brand is
typically much broader. Trade names or corporate branding are used to identify and
promote an entire company or department in a business. A trade name is the legal
name of the business and is used to promote its various activities as an organization.
✔✔Describe factors used by businesses to position corporate brands. - ✔✔Factors
used to position corporate brands include price, quality, features and benefits and
relationship to the competition.
✔✔Explain the nature and scope of channel management - ✔✔Channel management is
the supervision of a good or service through the manufacturing process to the final user.
This process can include manufacturers, wholesalers, retailers, direct and indirect
distribution and agents. As a good or service moves in this process, channel
management can include the selection of a transportation systems and services as well
as inventory storage.
ANSWERS AND QUESTIONS SET A+
✔✔Identify the impact of the product life cycles on marketing decisions. - ✔✔There are
four stages of the product life cycle: introduction, growth, maturity, and decline.
Depending on the stage in which the product is in, marketer must adjust their product
mix and marketing strategies to ensure continued sales. Different stages of the life cycle
demand different focuses. In the introduction phase, companies focus their efforts on
promotion and production to draw customer attention and increase product awareness
using special promotions. During the growth stage, companies focus on customer
satisfaction and introducing new models to compete against competitors. During the
maturity stage, the company focuses on fighting off the competition and deciding
whether or not to improve the product to gain additional sales. During the decline stage,
management must decide how long it will continue to support the product, when to drop
the product, or what product mix strategies to use (selling or licensing the product,
recommitting to the product line, discounting the product, regionalizing the product,
altering the product).
✔✔Describe the use of technology in the product/service management function. -
✔✔Technology can create opportunities for new products, make production of products
more efficient, make products easier to use, and make products obsolete.
✔✔Explain business ethics in product/service management. - ✔✔Business ethics in
product/service management involves making customers aware of product information
that can affect safety and health when the product is used. E.g. product recalls, allergy
information and labeling, and clear instructions on how to use the good or service.
✔✔Identify product opportunities. - ✔✔Identifying product opportunities uses marketing
information to find problems that can be solved using a product. A product opportunity
exists when there is a gap between what is currently on the market and the possibility
for new or significantly improved products that result from emerging trends. Product
generation then stems from ideas on how to solve the problem. (E.g. devices getting
stolen in cars: compartment to put devices in). New product opportunities can come
from a variety of sources including consumers, competitors, manufacturers,
wholesalers, and internal research and development teams. The use of creativity is an
,inherent part of this process. Ideas can be generated during the market research
process through both customers and competitive analysis. Internal teams may be put
together to evaluate new product decisions including all departments of the business.
✔✔Identify methods/techniques to generate a product idea. - ✔✔New product ideas can
come from a variety of sources: customers, competitors, channel members and
company employees. Focus groups or idea sessions are often used my companies to
involve customers in generating product ideas. In addition, companies that manufacture
consumer packaged goods use a task force approach to new product development.
This approach involves gathering employees from various departments to take a new
concept and run it through the steps of product development. Companies that
manufacture and sell industrial products establish venture teams that develop new
products not part of the existing business.
✔✔Generate product ideas. - ✔✔Tools used to generate product ideas can include
brainstorming, creative thinking processes and problem solving sessions. A company
can generate product ideas by conducting consumer and sales force focus groups.
✔✔Describe the uses of grades and standards in marketing. - ✔✔Standards are
statements that specify a product's size, contents and/or quality. Grades are ratings
assigned to products that indicate to what extent standards are met. Grades and
standards are used to compare and judge different products. They help speed up
consumers' buying decisions because consumers do not need to spend time to inspect
the product. Consumer rely on grades and standards for product information.
✔✔Explain warranties and guarantees. - ✔✔A warranty is a guarantee (often written)
that specific facts or conditions are true or will happen or that a product will work in the
way promised. A guarantee is an agreement assuming responsibility to perform,
execute, or complete something and offering security for that agreement. It is a promise
or an assurance, especially one given in writing, that attests to the quality or durability of
a product or service. Warranties can be implied, express (oral or written), and extended
(costs extra).
✔✔Identify consumer protection provisions of appropriate agencies. - ✔✔Consumers
are protected by both federal and state provisions. The Federal Trade Commission
enforces the Magnuson-Moss Consumer Product Warranty Act that sets minimum
standards for warranties. The Consumer Product Safety Commission monitors product
safety by issuing standards for constructions, testing, packaging and performance. The
Food and Drug Administration enforces the Food, Drug and Cosmetics Act which sets
standards for pure, wholesome and effective products in these categories. States have
various forms of lemon laws and Better Business Bureaus to protect consumers.
✔✔Explain the concept of product mix. - ✔✔A product mix is all the products that a
company makes or sells. This includes the width, length, depth and consistency of the
product mix. Width: total # of lines of products. Length: total # of products in each line.
, Depth: variations of each product (e.g. colour, size). Consistency: similarity between
different products in use, function, etc.
✔✔Describe the nature of product bundling. - ✔✔Marketers may use product bundling
to package two or more complementary goods and services, usually for a lower price
than had the products been purchased separately. For example, if customer goes to the
spa for a manicure and pedicure the price may be lower than if that customer purchased
a manicure and pedicure separately.
✔✔Describe factors used by marketers to position products/services. - ✔✔The focus of
product/service positioning is the image the product/service projects to the public. The
goal is to set the product apart from the competition. Marketers can position products
based on price and quality (focuses on price as in indication of value; high price =
quality, low price = value), features and benefits (focuses on effectiveness and use) and
in relation to competition or other products in the line (compares benefits of product to
others).
✔✔Explain the nature of product/service branding - ✔✔Product/service branding is how
a product interacts with its customers through design, logo and messaging and how its
distinguishes itself from competitors. Branding can identify one product, a family of
products, or all products of a company. Brands connote various benefits, (e.g. quality
and reliability or fun and excitement.) The importance of branding is to build product
recognition and customer loyalty, ensure quality and consistency, and capitalize on
brand exposure.
✔✔Explain the nature of corporate branding. - ✔✔Corporate branding refers to the
practice of promoting the brand name of a corporate entity, as opposed to specific
products or services. The activities and thinking that go into corporate branding are
different from product and service branding because the scope of a corporate brand is
typically much broader. Trade names or corporate branding are used to identify and
promote an entire company or department in a business. A trade name is the legal
name of the business and is used to promote its various activities as an organization.
✔✔Describe factors used by businesses to position corporate brands. - ✔✔Factors
used to position corporate brands include price, quality, features and benefits and
relationship to the competition.
✔✔Explain the nature and scope of channel management - ✔✔Channel management is
the supervision of a good or service through the manufacturing process to the final user.
This process can include manufacturers, wholesalers, retailers, direct and indirect
distribution and agents. As a good or service moves in this process, channel
management can include the selection of a transportation systems and services as well
as inventory storage.
