Deck 12: Setting Product Strategy

Question 1

Durable products normally require less personal selling and service and less seller guarantees than nondurable goods.

Answer 1

False

Question 2

________ are the major factors influencing the selection of suppliers for natural products. A.Price and delivery reliability
B)Product features and customization
C)Price and customization
D)Delivery reliability and product features
E)Customization and delivery reliability

Answer 2

A

Question 3

Because they are intangible,durable goods normally require more quality control,supplier credibility,and adaptability than either services or nondurable goods.

Answer 3

False

Question 4

Realizing that although household products is a huge category,taking up an entire supermarket aisle or more,it is an incredibly boring one,the founders of Method Products designed a sleek,uncluttered dish soap container that also carried functional advantages,such as ease of dispensing soap and cleaning.Method is competing in the crowded market for household products on the basis of superior ________. A.design
B)durability
C)conformance
D)reliability
E)performance quality

Question 5

Because ________ are purchased frequently,marketers should make them available in many locations,charge only a small markup,and advertise heavily to induce trial and build preference. A.nondurable goods
B)durable goods
C)services
D)unsought goods
E)specialty goods

Question 6

Marketing planning begins with formulating an offering to meet target customers' needs or wants.

Question 7

A product is anything that can be offered to a market to satisfy a want or need.

Question 8

Many products can be differentiated in terms of their ________,which is its size,shape,or physical structure. A.form
B)prototype
C)architecture
D)model
E)blueprint

Question 9

A(n)________ is defined as a distinct unit within a brand or product line distinguishable by size,price,appearance,or some other attribute. A.stockkeeping unit
B)inventory turn
C)individual brand
D)product type
E)brand line

Question 10

The customer-value hierarchy consists of the basic product,core benefit,expected product,augmented product,and the consumption system.

Question 11

Marketers have traditionally classified products on the basis of characteristics such as durability,tangibility,and use.

Question 12

Companies may wish to implement a(n)________ to achieve more growth,to realize higher margins,or simply to position themselves as full-line manufacturers. A.up-market stretch
B)rebranding plan
C)outsourcing strategy
D)disintermediation policy
E)vertical integration strategy

Question 13

Purchasers of theatre tickets receive a 20% discount if they purchase and pay for the full season at one time.This is an example of what type of product-mix pricing? A.mixed bundling
B)pure bundling
C)cross-promotion
D)captive pricing
E)two-part pricing

Question 14

The way the user performs the tasks of getting and using products and related services is the user's total ________. A.consumption system
B)consumable system
C)consistent use system
D)augmented system
E)potential system

Question 15

The ________ of the product mix refers to how closely related the various product lines are in end use,production requirements,distribution channels,or some other way. A.consistency
B)depth
C)width
D)length
E)composition

Question 16

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future.The firm decides to enter the "low-price" segment with its new items.This is an example of a firm's ________ to reach a new market. A.down-market stretch
B)up-market stretch
C)two-way stretch
D)marketing research
E)disintermediation

Question 17

_____________ is a measure of the ease of fixing a product when it malfunctions or fails. A.repairability
B)Durability
C)Reliability
D)Specialty
E)Compatibility

Question 18

In planning its market offering,the marketer needs to address five product levels,each of which reduces customer value.

Question 19

________ refers to educating the customer's employees to use the vendor's equipment properly and efficiently. A.Customer training
B)Open innovation
C)Crowdsourcing
D)Co-development
E)Collaborative research

Question 20

The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind.Consumer expectations about the level of involvement and commitment are likely to be high,so unsatisfactory performance could be very negative for the brands involved. A.co-branding
B)cannibalization
C)vertical integration
D)disintermediation
E)brand stretching

Question 21

The homogeneity of natural materials limits the amount of demand-creation activity that producers undertake.

Question 22

A product system is a group of diverse and unrelated items that does not function in a compatible manner and includes the product mix and product assortment.

Question 23

The cost of processing a return can be significantly greater than that of an outbound shipment.

Question 24

Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

Question 25

Every company's product line covers a certain part of the total possible range of products and consumer levels.

Question 26

Supplies are the equivalent of convenience goods;they are usually purchased with minimum effort on a straight rebuy basis.

Question 27

If the physical product cannot be easily differentiated,the key to competitive advantage lies in the pricing of the related "services" provided by the manufacturer.

Question 28

Capital items are long-lasting goods that facilitate developing or managing the finished products.

Question 29

Design can shift consumer perceptions to make brand experiences more rewarding.

Question 30

To avoid "feature fatigue," companies must be careful to prioritize those features that are included and find unobtrusive ways to provide information about how consumers can use and benefit from the feature.

Question 31

The product hierarchy stretches from basic needs to particular items that satisfy those needs.

Question 32

As a selling point,durability commands a particularly high pricing premium,especially for products that are subject to rapid technological obsolescence,as are personal computers and video cameras.

Question 33

The product-line length can be obtained by averaging the number of variants within the brand groups.

Question 34

To be branded,physical products need not be differentiated.

Question 35

Carl always buys bread and milk when he goes grocery shopping.In this case,bread and milk are examples of impulse goods.

Question 36

A Maserati sports car is considered a convenience good because interested buyers will travel far to buy one.

Question 37

Companies in the "middle market" should never attempt to stretch their line in both directions.

Question 38

The four product-mix dimensions (length,width,depth,consistency)permit the company to expand its business.

Question 39

Firms should design the highest performance level possible for their products.

Question 40

Line filling,if overdone,may result in self-cannibalization and increased customer loyalty.

Question 41

Pure bundling occurs when a firm offers goods both individually and in bundles.

Question 42

Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

Question 43

A pricing system in which there is a "fixed" fee and then a variable "usage" fee is called bundling.

Question 44

The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas.List these four main classifications of consumer goods and explain what elements are included within.

Question 45

A guarantee's greatest contribution to a product's success is that it decreases the buyer's perceived risk in the purchase of the product.

Question 46

Describe the six main service differentiators.

Question 47

Price-setting logic must be modified when the product is part of a product mix.

Question 48

What is the significance of design for a company's products and services? What are the advantages of a good design?

Question 49

Industrial goods can be classified in terms of how they enter the production process and their relative costliness.Identify the three groups of industrial goods.

Question 50

In the rapidly changing market of today's world,product lines must be continuously updated or modernized.

Question 51

In planning its market offering,the marketer must address the five product levels of the customer-value hierarchy.Describe the "customer-value hierarchy" and identify the five levels of product contained within.

Question 52

Even if the seller prefers a simple label,the law may require additional information.

Question 53

Companies normally develop product lines rather than a single product and introduce price steps such as a "low-," "average-," and "high-"priced computer system.

Question 54

Co-branding is when two or more well-known existing brands are combined into a joint product and/or marketed together in some fashion.

Question 55

Distinguish between controllable returns and uncontrollable returns.

Question 56

Warranties are formal statements of expected product performance by the manufacturer.

Question 57

Packaging is all the activities of designing and producing the container for a product.

Question 58

Manufacturers of systems such as razors and ink jet printers use a system of pricing called "two-part pricing",one price for the disposable products and another for the "hardware."

Question 59

You know that marketers have traditionally classified products based on characteristics of durability,tangibility,and use.You also know that each product type has an appropriate marketing-mix strategy attached.In analyzing your company's products,you decide to list each of these products and the appropriate marketing-mix strategy to understand where your products "fit." List these products and their appropriate marketing-mix strategies.

Question 60

Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

Question 61

What is the importance of guarantees?

Question 62

Industrial-goods classifications based on terms of how the products enter the production process and their relative costs include such segments as materials and parts and capital items.Window cleaning services,consumable office supplies,personal computers,desks,paint,nails,and buckets are included in the classifications of industrial goods.List the other "classifications" including subclassifications for industrial goods.

Question 63

Outline three guidelines for correctly implementing a bundling strategy.

Question 64

In your position as a marketing manager for a small industrial company,you have been asked by the president to help differentiate the company's product from its competitors.In reviewing your marketing management notes,you note that the text stated that physical products could be differentiated in nine ways.These nine areas comprise the "meat" of the memo you are writing to the president of your firm.What are the nine ways that physical products can be differentiated?

Question 65

Explain the concepts of product-mix width,length,depth,and consistency.

Question 66

During a meeting,you were asked by the vice-president of marketing,to comment on the company's pricing strategy for its products.Recalling your marketing management course in college,your comments define the six situations involving product-mix pricing.List these six product-mix pricing strategies.

Question 67

You have been asked to prepare a product-line analysis for your company's stable of products.Why is it important for product-line mangers to do a product-line analysis?

Question 68

When a physical product cannot easily be differentiated,the key to competitive success may lie in adding valued services and improving quality.Identify the six main service differentiators.

Question 69

To be branded,products must be differentiated.List the possible ways that physical products can be differentiated.

Question 70

As the marketing manager for your firm,you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item.What are some of the requirements for succeeding in ingredient branding?

Question 71

You have been asked to create a product system for your company's personal digital assistant.Before starting,you must define the term "product system" to the engineers to enable them to start design and production of the aligned items.Define the concept of a "product system."

Question 72

Sellers must label their products.Labels serve many purposes beyond just "naming" the product.List the additional services provided by a product's label.

Question 73

As the newest member of the marketing department,your immediate boss asks you to comment on the company's proposal to add two new shoes to the company's middle-of-the-road pricing and product-line strategies.The first pair will retail for $40.00 and has as its target market the "bargain" shopper.The second pair will retail for $200.00 and is targeted at the "sophisticated shopper." In relation to product-line strategy,what is the company trying to accomplish with these two new items?

Question 74

Studying how consumers shop,how they use a particular product or service,and how they dispose of the product when consumed is important for marketers.This information forms the basis of product strategy.Define the consumption system and identify the two upcoming product strategies that are affected by this knowledge.

Question 75

In discussions with the packaging design team,you note that they do not have a firm design objective for the final package.In an internal memo to your boss,outline the objectives (both company and consumer orientated)that you wish to see implemented by the design team.

Question 76

Explain the concept of line stretching and the three uses for it.

Question 77

Various factors have contributed to the increased importance of packaging as a marketing tool.List and briefly describe these events.

Question 78

A manufacturer is contemplating introducing a product that is inferior to its competition in its performance,design,and functionality.However,the manufacturer believes that "good brand marketing" can overcome these shortfalls.Why is this thinking incorrect?

Question 79

Product-mix pricing can involve a number of pricing strategies for the brand manager.List each of these strategies and briefly define each.

Question 80

Your research shows that over 53% of all purchases are made on impulse.As you sit down with your packaging design team,you tell them that the package must communicate many of the sales tasks.List the sales tasks that packaging must now incorporate due to the increase in self-service sales.