Small Business Management BA 313-01
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Product and Supply Chain Management - Review

<< Back to Product and Supply Chain - Chapter 14

1) Sustainable competitive advantage is a value-creating industry position that is likely to endure over time.

2) It is importanet that small firms gain a competitive advantage, which cannot be easily imitated.

3) A firm's competitive advantage will never last forever.

4) According to the textbook's three-stage model (develop, deploy, decline) of the life-cycle of a competitive advantage, it is during the deploy stage that a firm can capitalize on its competitive advantage.

5) If a firm is to maintain its performance over time, it is essential to produce a contineous stream of competitive advantages.

6) To maintain its performance, a small firm must launch a new competitive advantage before the current strategy has run its course.

7) Strategies for the marketing of goods and services are not the same, . They differ along the a number of dimensions (e.g., tangibility, standardization, and perishability).

8) For small businesses, one growing threat to sustainabile competitive advantage is a lack of legal planning.

9) Despite the limited resources of a typical small business, this type of firm should formalize the product development process.

10) The collection of product lines within a firm,s ownership and control is referred to as the product mix.

11) The four stages of a product life cycle are: introduction, growth, maturity, and decline.

12) The new product development process consist of: idea accumulation, business analysis, development of the product and product testing (in the order shown).

13) Legitimate sources of new product ideas within the framework of a formal product development process include: business personnel, customer request or suggestions, government owned patents, competitor's products and advertising, through merger/acquisition of other small companies, market research, and brainstorming.

14) Key factors to consider when conducting the business analysis phase of the new product development process include: development cost, introduction of the product, available personnel and facilities, competition, market acceptance, and the product's relationship to the existing product lines.

15) Appropriate vehicles for testing a product in the product development process are: laboratory test, test of the physical product, and limited market field tests.

16) Given that strong competition in a market can make introduction of a new product difficult, it is best for a small firm to offer a product that is sufficiently different from competitor's products, or that is in a cost and price range bracket where it can avoid direct competition.

17) A small firm can try to increase sales of an existing product by convincing non-users in the market to become customers, by persuading current customers to use more of the product, and alerting current customers to new uses for the product.

18) A major explicit responsibility of marketing is to transform a basic product into a total product offering.

19) A brand is a means of identifying a product--verbally an/or symbolically.

20) Important rules of thumb in naming a product includes: choosing a descriptive name, selecting a name that is easy to pronounce and remember, using a name that can have legal protection, selecting a name with promotional possibilities, and selecting a name that can be used on several product lines.

21) The name "Apple" is a brand. McDonalds golden arch is a brand (symbol).

22) Trademark and service mark are legal terms indicating the exclusive right to use a brand.

23) Packaging is a significant tool for increasing the value of the total product by creating a distinctive impression.

24) Innovative packaging is frequently a deciding factor for consumers.

25) Explicit functions of packaging include all the following: distinguishing the product from competitor's products, influencing customers, and protecting the product.

26) Labeling shows the product's brand, is an informative tool for consumers, and it should emphasize brand visibility.

27) Labeling information should go beyond the specified minimum legal requirements.Effective evaluation of warranty policies should focus on legal implications, service capability, and customer perceptions.

28) The warranty may be written or unwritten.

29) Warranties are important for products that are relatively complex to repair.

30) There are six categories of product strategy alternatives for small businesses. The most appropriate and effective product strategy to use in the initial stage of a small business is the one product/one market product strategy. It is important to be able to identify product strategies using company concepts of product(s) and market(s) information.

31) To balance out seasonal use, some sporting goods firms manufacture both snow ski and water skis. This should provide a useful hedge against volatile shifts in market demand.

32) A product strategy that includes a new product that is quite different from existing products can be very risky.

33) Small businesses can protect their intangible assets by means of trademarks, patents, trade dress, and copyrights.

34) Conducting a trademark search is complex, but an entrepreneur can conduct the trademark search personally instead of using a lawyer by using the Trademark Search Library of the United States Patent and Trade Office.

35) A copyright provides protection for the duration of the creator's life plus 70 years.

36) The distinctive image of a product, including features such as size, shape, color or color combinations, texture, graphics, or even particular sales techniques, can be protected as trade dress.

37) A copyright notice should include the symbol (c).

38) By law a trademark registred today will remain effective for 10 years and can be renewed for 10 year periods as long as it is used.

39) A design patent provides protection for the appearance of the product and its inseparable parts for a period of 14 years.

40) A utility patent provides protection for a new process or a product's function for a period of 20 years.

41) A plant patent provides protection for any disnct, new variety of living plant for a period of 20 years.

42) Marketeers often regard distribution as the least glamerous marketing activity.The three considerations in building a channel of distribution are cost, coverage, and control.

43) Small businesses are encouraged to view distribution costs as an investment.

44) Distribution includes both the physical movement of products and the establishment of intermediary relationships to guide and support the movement of products.

45) Distribution is essential for both tangible and intangible goods.

46) A direct channel of distribution is one tht involves no intermediaries.

47) Analysis of competitor's distribution is a valuable source of information to a small business that is structuring its own distribution system.

48) Transportation is the main component of physical distribution. Additional components include storage, materials hancling delivery terms, and inventory management.

49) Physical distribution and Logistics are synonymous. The distribution management course is the Logistics course for marketing.

50) When the channel system uses merchant middlemen or wholesalers, the storage function is transferred to the intermediary.

51) Available types of transportation intermediaries includes common carriers, public carriers, and private carriers.

52) Shippers that use their own means of transport are called private carriers (e.g., Sherman Williams).

53) Contract carriers contract with individual shippers.

54) Common carriers are available for hire to the general public.

55) Supply chain managemetn does not integrate and coordinate the ways the firm developes product pricing structures on the retail level.

56) Delivery terms specify which party pays the freight costs, selects cariers, bears the risk of damage, and selects the modes of transportation.

57) F.O.B. origin, freight collect, is a delivery term that shifts all responsibility for freight costs to the buyer. There are many types of delivery terms that are not discussed in this book.

58) I would have liked to have seen at least one chapter covering Logistics only, but for some reason, the authors did not choose to do so. Transportation alone is a course at many universities/colleges.

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