Chapter 12 – Setting Product Strategy

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Chapter 12 – Setting Product Strategy

  1. 1. TOP 10 Learning Questions for Chapter 12 – Setting Product Strategy Ma. Camille V. Villagarcia 23 Sept 2010
  2. 2. 1. _____ is the service that the customer is really buying. <ul><li>A. Potential Product </li></ul><ul><li>B. Expected Product </li></ul><ul><li>C. Core Benefit </li></ul><ul><li>D. Basic Product </li></ul><ul><li>E. Augmented Product </li></ul>
  3. 3. Five Product Levels
  4. 4. Core Benefit is the fundamental level! <ul><li>The service or benefit the customer is really buying </li></ul>
  5. 5. 1. _____ is the service that the customer is really buying. A. Potential Product B. Expected Product C. Core Benefit D. Basic Product E. Augmented Product
  6. 6. 2. ___ are intangible & require more quality control, supplier credibility, & adaptability. <ul><li>A. Nondurable goods </li></ul><ul><li>B. Industries </li></ul><ul><li>C. Durable goods </li></ul><ul><li>D. Brands </li></ul><ul><li>E. Services </li></ul>
  7. 7. Durability and Tangibility Durable Goods Nondurable Goods Services
  8. 8. Marketing-mix Strategy of Product Types Nondurable – availability in many locations, small markup, heavy advertisement Durable – personal selling & service, higher margin, more seller guarantee Service – more quality control, supplier credibility, adaptability
  9. 9. 2. ___ are intangible & require more quality control, supplier credibility, & adaptability. A. Nondurable goods B. Industries C. Durable goods D. Brands E. Services
  10. 10. 3. The following show the importance of DESIGN in product differentiation except for: <ul><li>A. Provides competitive edge </li></ul><ul><li>B. Gives consumers variety of choices </li></ul><ul><li>C. Affects the totality of features </li></ul><ul><li>D. Compelling for start-up companies </li></ul><ul><li>E. Positions company’s products & designs </li></ul>
  11. 11. Product Differentiation Design Conformance Style Performance Repairability Customization Reliability Features Durability Product Form
  12. 12. Importance of Design in Product Differentiation <ul><li>Design </li></ul><ul><ul><li>totality of features </li></ul></ul><ul><ul><li>position a company’s product & services </li></ul></ul><ul><ul><li>gives competitive edge </li></ul></ul><ul><ul><li>compelling to smaller consumer-product companies and start-ups that don’t have big advertising budget </li></ul></ul>
  13. 13. 3. The following show the importance of DESIGN in product differentiation except for: A. Provides competitive edge B. Gives consumers variety of choices C. Affects the totality of features D. Compelling for start-up companies E. Positions company’s products & designs
  14. 14. 4. The following are the main Service Differentiators except for: <ul><li>A. Customer Service </li></ul><ul><li>B. Installation </li></ul><ul><li>C. Repair </li></ul><ul><li>D. Ordering Ease </li></ul><ul><li>E. Delivery </li></ul>
  15. 15. Service Differentiation <ul><li>Ordering ease </li></ul><ul><li>Delivery </li></ul><ul><li>Installation </li></ul><ul><li>Customer training </li></ul><ul><li>Customer consulting </li></ul><ul><li>Maintenance & repair </li></ul><ul><li>Returns </li></ul>
  16. 16. 4. The following are the main Service Differentiators except for: A. Customer Service B. Installation C. Repair D. Ordering Ease E. Delivery
  17. 17. 5. Which of the following is false? <ul><li>A. Product family satisfy a core need with reasonable effectiveness. </li></ul><ul><li>B. Need family is the core need that underlies the existence of a product family. </li></ul><ul><li>C. Product line shares one of several possible forms of the product. </li></ul><ul><li>D. Product class is also know as product category. </li></ul><ul><li>E. Product class is a group w/in product family recognized as having a certain functional coherence. </li></ul>
  18. 18. The Product Hierarchy Item Product type Product line Product class Product family Need family
  19. 19. The Product Hierarchy <ul><li>Need family – core need that underlies the existence of a product family </li></ul><ul><li>Product family – satisfy a core need with reasonable effectiveness </li></ul><ul><li>Product class – grp w/in product family recognized as having a certain functional coherence </li></ul><ul><li>Product line – grp w/in product class that are related bec they perform a similar function </li></ul><ul><li>Product type – grp w/in product line that share 1 of several possible forms of the product </li></ul><ul><li>Item – distinct unit w/in a brand </li></ul>
  20. 20. 5. Which of the following is false? A. Product family satisfy a core need with reasonable effectiveness. B. Need family is the core need that underlies the existence of a product family. C. Product line shares one of several possible forms of the product. D. Product class is also know as product category. E. Product class is a group w/in product family recognized as having a certain functional coherence.
  21. 21. 6. Which is not true about Packaging? <ul><li>A. It contributes to instant recognition of the company and brand. </li></ul><ul><li>B. Must attract attention, describe product features, create consumer confidence, & make favorable overall impression. </li></ul><ul><li>C. Helps consumers to store the product. </li></ul><ul><li>D. B and C </li></ul><ul><li>E. None of the above. </li></ul>
  22. 22. Packaging Objectives <ul><li>Identify the brand </li></ul><ul><li>Convey descriptive and persuasive information </li></ul><ul><li>Facilitate product transportation & protection </li></ul><ul><li>Assist at-home storage </li></ul><ul><li>Aid product consumption </li></ul>
  23. 23. 6. Which is not true about Packaging? A. It contributes to instant recognition of the company and brand. B. Must attract attention, describe product features, create consumer confidence, & make favorable overall impression. C. Helps consumers to store the product. D. B and C E. None of the above.
  24. 24. 7. Blackberry introduced and used BBM as what type of product differentiation? <ul><li>A. Customization </li></ul><ul><li>B. Conformance Quality </li></ul><ul><li>C. Style </li></ul><ul><li>D. Design </li></ul><ul><li>E. Feature </li></ul>
  25. 25. Product Differentiation Design Conformance Style Performance Repairability Customization Reliability Features Durability Product Form
  26. 26. Feature <ul><li>Most products can be offered with varying features that supplement their basic function. </li></ul><ul><li>A company can identify and select appropriate new features by surveying recent buyers then calculating customer value versus company cost for each potential feature. </li></ul>
  27. 27. 7. Blackberry introduced and used BBM as what type of product differentiation? <ul><li>A. Customization </li></ul><ul><li>B. Conformance Quality </li></ul><ul><li>C. Style </li></ul><ul><li>D. Design </li></ul><ul><li>E. Feature </li></ul>
  28. 28. 8. The new ‘Tide with power of Safeguard’ is an example of what type of co-branding? <ul><li>A. joint-venture </li></ul><ul><li>B. same-company </li></ul><ul><li>C. retail </li></ul><ul><li>D. multiple-sponsor </li></ul><ul><li>E. ingredient branding </li></ul>
  29. 29. Co-Branding <ul><li>Dual branding / brand bundling </li></ul><ul><li>2 or more well-known brands are combined into a joint product or marketed together in some fashion </li></ul><ul><li>Same-company co-branding – 2 products under 1 company </li></ul><ul><ul><li>Tide and Safeguard are both under Procter & Gamble </li></ul></ul>
  30. 30. 8. The new ‘Tide with power of Safeguard’ is an example of what type of co-branding? <ul><li>A. joint-venture </li></ul><ul><li>B. same-company </li></ul><ul><li>C. retail </li></ul><ul><li>D. multiple-sponsor </li></ul><ul><li>E. ingredient branding </li></ul>
  31. 31. 9. Apple provides assistance to 1st time buyers/users of the MacBook. This is an example of what type of service differentiation? <ul><li>A. Installation </li></ul><ul><li>B. Customer Service </li></ul><ul><li>C. Customer Training </li></ul><ul><li>D. Customer Consulting </li></ul><ul><li>E. Maintenance and Repair </li></ul>
  32. 32. Service Differentiation <ul><li>Ordering ease </li></ul><ul><li>Delivery </li></ul><ul><li>Installation </li></ul><ul><li>Customer training </li></ul><ul><li>Customer consulting </li></ul><ul><li>Maintenance & repair </li></ul><ul><li>Returns </li></ul>
  33. 33. Customer Training <ul><li>Refers to training the customers to use the equipments properly and efficiently </li></ul>
  34. 34. 9. Apple provides assistance to 1st time buyers/users of the MacBook. This is an example of what type of service differentiation? <ul><li>A. Installation </li></ul><ul><li>B. Customer Service </li></ul><ul><li>C. Customer Training </li></ul><ul><li>D. Customer Consulting </li></ul><ul><li>E. Maintenance and Repair </li></ul>
  35. 35. 10. What type of line stretching did Globe do when it launched TM? <ul><li>A. Up-Market Stretch </li></ul><ul><li>B. Down-Market Stretch </li></ul><ul><li>C. Straight-Market Stretch </li></ul><ul><li>D. Product Stretch </li></ul><ul><li>E. Two-Way Stretch </li></ul>
  36. 36. Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch
  37. 37. Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch company from upper/middle market introduces a lower-priced line companies enter the high end of the market to achieve more growth company in middle decide to stretch their line in both directions
  38. 38. 10. What type of line stretching did Globe do when it launched TM? <ul><li>A. Up-Market Stretch </li></ul><ul><li>B. Down-Market Stretch </li></ul><ul><li>C. Straight-Market Stretch </li></ul><ul><li>D. Product Stretch </li></ul><ul><li>E. Two-Way Stretch </li></ul>
  39. 39. TOP 10 Learning Questions for Chapter 12 – Setting Product Strategy Ma. Camille V. Villagarcia 23 Sept 2010

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