1. Top 10 Learning Questions for Setting Product strategy Ch 12 MaryamEftekhar Dec/2/2010

2. 1. At the second level of the customer value hierarchy, the marketer has to turn the _____ into a(n) _____. basic product; expected product expected product; augmented product core benefit; basic product basic need; basic product basic need; core benefit

3. Five Product Levels C

4. 1. At the second level of the customer value hierarchy, the marketer has to turn the _____ into a(n) _____. basic product; expected product expected product; augmented product core benefit; basic product basic need; basic product basic need; core benefit

5. 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. potential product expected product augmented product basic product anticipated product

6. Five Product Levels B

7. 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. potential product expected product augmented product basic product anticipated product

8. 3. When a service firm requires both a fixed fee plus a variable usage fee, this is called _____. variable pricing optional pricing captive pricing two-part pricing bundled pricing

9. Two Part Pricing Service firms engage in Two Part Pricing, consisting of a fixed fee plus a variable usage fee. Telephone users pay a minimum monthly fee plus charges for calls beyond certain areas.

10. 3. When a service firm requires both a fixed fee plus a variable usage fee, this is called _____. variable pricing optional pricing captive pricing two-part pricing bundled pricing

11. 4. _____ is defined as all activities of designing and producing the container for a product. Designing Packaging Containerizing Shipping Marketing

12. Packaging Objectives Identify the brand Convey descriptive and persuasive information Facilitate product transportation and protection Assist at-home storage Aid product consumption We define Packaging as all the activities of designing and producing the container for a product. Page 379

13. What is the Fifth P? Packaging, sometimes called the fifth P, is all the activities of designing and producing the container for a product.

14. 4. _____ is defined as all activities of designing and producing the container for a product. Designing Packaging Containerizing Shipping Marketing

15. 5. A refrigerator is an example of a(n) _____. staple good nondurable good durable good industrial good non-consumer good

16. Durability and Tangibility Nondurable goods Services Durable goods

17. Durable good Tangible goods that normally survive many uses; Refrigerators, machine tools, and clothing. Durable products normally require more personal selling and service, command a higher margin, and require more seller guarantees.

18. 5. A refrigerator is an example of a(n) _____. staple good nondurable good durable good industrial good non-consumer good

19. 6. A Mercedes is an example of a(n) _____ good because interested buyers will travel far to buy one. durable nondurable specialty shopping unsought

20. Consumer Goods Classification Convenience Shopping Unsought Specialty

21. Specialty goods Have unique characteristics or brand identification for which a sufficient number of buyers are willing to make a special purchasing effort.

22. 6. A Mercedes is an example of a(n) _____ good because interested buyers will travel far to buy one. durable nondurable specialty shopping unsought

23. 7. Proctor and Gamble produces many different product lines. This is an example of the _____ of the company's product mix. offerings consistency width breadth depth

24. Product Systems and Mixes Product system Product mix Product assortment Depth Length Width Consistency

25. Depth The depth of a product mix refers to how many variants are offered of each product in the lin.

26. 7. Tide produces many different distinct variants like liquid and powder detergant. This is an example of the _____ of the company's product mix. offerings consistency width breadth depth

27. 8.The number of different product lines that a company carries in its mix is referred to as the _____ of the product mix. depth length width breadth consistency

28. Width The width of a product mix refers to how many different product lines the company carries. Proctor and Gamble produces many different product lines

29. 8.The number of different product lines that a company carries in its mix is referred to as the _____ of the product mix. depth length width breadth consistency

30. 9. 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? core product staple product specialty product convenience items shopping goods

31. Product Line Analysis Core product Staples Convenience items Specialties

32. Core Products Basic laptop computers that produce high sales volume and are heavily promoted but with low margins because they are viewed as undifferentiated commodities.

33. 9. 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? core product staple product specialty product convenience items shopping goods

34. 10. 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) _____. two-way stretch up-market stretch down-market stretch sideways stretch high-end stretch

35. Line Stretching Down-Market Stretch Up-Market Stretch Two-Way Stretch

36. Up-Market Stretch One of the ways a company may stretch its product lines. Here, company may introduce a new product/brand/model on the higher side of the market with more features, more quality, higher price or adding any other new variable. The company does to enter the high end of the market for more growth, higher margins, or simply to position itself as full-line manufacturer.

37. 10. 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) _____. two-way stretch up-market stretch down-market stretch sideways stretch high-end stretch

38. Top 10 Learning Questions for Setting Product strategy Ch 12 MaryamEftekhar Dec/2/2010