TOP 10 Learning Questions for            (Chapter 12)            LU, QINGJUAN          December 16, 2011      Chapter 12 S...
1. In below five of the Product Levels-     Customer-Value Hierarchy, which one     is the Fundamental level of the     hi...
Product Levels: The   Customer-Value Hierarchy                         Basic Product-the                                  ...
2. At the third level of the customer     value hierarchy, the marketer prepares     a(n) _____, a set of attributes and  ...
Customer-Value HierarchyAt the third level, the marketer prepares anExpected Product, a set of attributes andconditions bu...
3. _____ goods are purchased without     any planning or search effort.A.   StaplesB.   ImpulseC.   UnsoughtD.   Emergency...
Consumer- Goods ClassificationStaples are goods consumers purchase on regular basis.Impulse goods are purchased without an...
4. Buyers expect products to have a high     _____, which is the degree to which all the     produced units are identical ...
Conformance QualityConformance Quality which is the degree to which allthe produced units are identical and meet the promi...
5. Tide detergent comes in two scents andtwo additives creating variation with thebrand. This refers to the _____ of the p...
Product Systems and Mixes The Width of a product mix refers to how many different product lines the company caries. The Le...
6. A company can classify its products into four types.     Which type of product produces a high sales volume     and is ...
Four types of Product yield different gross    margins depending on sales volume and    promotion.Core products-high sales...
7. A company may wish to enter the high end of     the market for more growth , higher margins, or     simply to position ...
Line Stretching•   Down-Market Stretch: A company positioned in the    middle market may want to introduce a lower-price  ...
8. A company normally develop product lines     rather than single products and introduce     price steps, This is _____?A...
Product-Mix PricingProduct-line pricing is company normally develop productlines rather than single products and introduce...
9. _____ is defined as all activities of     designing and producing the container for a     product.A.   DesigningB.   Pa...
Packaginga.   Labeling may be a simple tag attached to     the product or an elaborately designed     graphic that is part...
10. A _____ is a formal statement of expectedproduct performance by the manufacturer.A.   GuaranteeB.   LabelC.   PromiseD...
Packaging, Labeling, Warranties, andGuaranteesA.   Packaging as all the activities of designing and     producing the cont...
Chapter 12 conceptso   Product is the first and most important element of marketing    mix. Product strategy calls for mak...
Chapter 12 conceptsBrands can be differentiated on the basis of a numberof different product or service dimensions: Produc...
TOP 10 Learning Questions for            (Chapter 12)            LU, QINGJUAN          December 16, 2011      Chapter 12 S...
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Chapter 12 setting product strategy

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Chapter 12, Top 10 Concepts, Question and answers

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Chapter 12 setting product strategy

  1. 1. TOP 10 Learning Questions for (Chapter 12) LU, QINGJUAN December 16, 2011 Chapter 12 Setting Product Strategy
  2. 2. 1. In below five of the Product Levels- Customer-Value Hierarchy, which one is the Fundamental level of the hierarchy?A. Potential ProductB. Augmented ProductC. Expected ProductD. Basic ProductE. Core Benefit 2
  3. 3. Product Levels: The Customer-Value Hierarchy Basic Product-the Expected Product- Core Benefit- marketer must turn the attributes andFundamental Level core benefit into a basic conditions of buyers product Potential Product- Augmented Product- encompasses all the exceeds customer possible augmentations expectations and transformations for the product 3
  4. 4. 2. At the third level of the customer value hierarchy, the marketer prepares a(n) _____, a set of attributes and conditions buyers normally expect when they purchase this product.A. Potential productB. Expected productC. Augmented productD. Basic productE. Anticipated product 4
  5. 5. Customer-Value HierarchyAt the third level, the marketer prepares anExpected Product, a set of attributes andconditions buyers normally expect when theypurchase this product. 5
  6. 6. 3. _____ goods are purchased without any planning or search effort.A. StaplesB. ImpulseC. UnsoughtD. EmergencyE. Nondurable 6
  7. 7. Consumer- Goods ClassificationStaples are goods consumers purchase on regular basis.Impulse goods are purchased without any planning orsearch effort.Emergency goods are purchased when a need is urgent.Unsought goods are those the consumer does not knowabout or does not normally think of buying.Nondurable goods are tangible goods normally consumedin one or a few uses. 7
  8. 8. 4. Buyers expect products to have a high _____, which is the degree to which all the produced units are identical and meet the promised specifications.A. Performance qualityB. Conformance qualityC. DurabilityD. RepairabilityE. Reliability 8
  9. 9. Conformance QualityConformance Quality which is the degree to which allthe produced units are identical and meet the promisedspecifications.Durability measure of the product’s expected operatinglife under natural or stressful conditions is a valuedattribute for certain products.Reliability measure of the probability that a product willnot malfunction or fail within a specified time periodRepairability measure the ease of fixing a product whenit malfunctions or fails. 9
  10. 10. 5. Tide detergent comes in two scents andtwo additives creating variation with thebrand. This refers to the _____ of the productmix.A. DepthB. LengthC. WidthD. ConsistencyE. Breath 10
  11. 11. Product Systems and Mixes The Width of a product mix refers to how many different product lines the company caries. The Length of a product mix refers to the total number of items in the mix. If Tide comes in two scents, two formulations and two additives, Tide has a depth of eight because there are eight distinct variants. The Consistency of the product mix refers to how closely related the various product lines are in end use. 11
  12. 12. 6. A company can classify its products into four types. Which type of product produces a high sales volume and is heavily promoted but has low margins because it is viewed as an undifferentiated commodity?A. Core productB. Staple productC. Specialty productD. Convenience itemsE. Shopping goods 12
  13. 13. Four types of Product yield different gross margins depending on sales volume and promotion.Core products-high sales volume and are heavily promotedbut with low margins because then are viewed asundifferentiated commodities.Staples-Items with lower sales volume and no promotion.Specialties- Items with lower sales volume but that might behighly promoted.Convenience items- high volume but receive less promotion. 13
  14. 14. 7. A company may wish to enter the high end of the market for more growth , higher margins, or simply to position themselves as full-line manufacturers. This is called a(n) _____?A. Two-way stretchB. Up-market stretchC. Down-market stretchD. Sideways stretchE. High-end stretch 14
  15. 15. Line Stretching• Down-Market Stretch: A company positioned in the middle market may want to introduce a lower-price line• Up-Market Stretch: Companies may wish to enter the high end of the market to achieve more growth.• Two-Way Stretch: Companies serving the middle market might decide to stretch their line in both directions. 15
  16. 16. 8. A company normally develop product lines rather than single products and introduce price steps, This is _____?A. Product-Line PricingB. Optional-Feature PricingC. Captive-Product PricingD. Two-part PricingE. By-product Pricing 16
  17. 17. Product-Mix PricingProduct-line pricing is company normally develop productlines rather than single products and introduce price steps.Optional-feature pricing is company offer optional products,features, and services along with their main product.Captive-product pricing are some products require the use ofancillary products, or captive products.Two-part pricing is consisting of a fixed fee plus a variableusage fee.By-product pricing is the production of certain goods meats,pertroleum products and other chemicals. 17
  18. 18. 9. _____ is defined as all activities of designing and producing the container for a product.A. DesigningB. PackagingC. ContainerizingD. LabelingE. Marketing 18
  19. 19. Packaginga. Labeling may be a simple tag attached to the product or an elaborately designed graphic that is part of the package.b. Packaging as all the activities of designing and producing the container for a product.c. Designing is particularly important is making and marketing retail services, apparel, packaged goods and durable equipment. 19
  20. 20. 10. A _____ is a formal statement of expectedproduct performance by the manufacturer.A. GuaranteeB. LabelC. PromiseD. WarrantyE. Mission statement 20
  21. 21. Packaging, Labeling, Warranties, andGuaranteesA. Packaging as all the activities of designing and producing the container for a product.B. Labeling may be a simple tag attached to the product or an elaborately designed graphic that is part of the package.C. Warranties are formal statement of expected product performance by the manufacturer.D. Guarantees reduce the buyer’s perceived risk. 21
  22. 22. Chapter 12 conceptso Product is the first and most important element of marketing mix. Product strategy calls for making coordinated decisions on product mixes, product lines, brands, and packaging and labeling.o In planning its market offering, the marketer needs to think through the five levels of the product: the core benefit, the basic product, the expected product, the augmented product, and the potential product, which encompasses all the augmentations and transformations the product might ultimately undergo.o Products can be classified in several ways. In terms of durability and reliability, products can be nondurable goods, durable goods, or services. 22
  23. 23. Chapter 12 conceptsBrands can be differentiated on the basis of a numberof different product or service dimensions: Productform, features, performance, conformance, durability,reliability, repairability, style, and design, as well assuch service dimensions as such service dimensions asordering ease, delivery, installation, customer training,customer consulting, and maintenance and repair. 23
  24. 24. TOP 10 Learning Questions for (Chapter 12) LU, QINGJUAN December 16, 2011 Chapter 12 Setting Product Strategy

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