TOP 10 Learning Questions for

Chapter 12 – Setting Product Strategy

Ma. Camille V. Villagarcia16 Sept 2010

1. Product is anything that can be offered to a market to satisfy a ______.

A. NeedsB. WantsC. DemandsD. Needs or WantsE. Needs or Demands

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Product Characteristics & Classifications

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• Product– Tangible or intangible– Anything offered in a market

• Satisfy consumers’ wants or needs

– ex: goods, services, experiences, information, ideas, etc

1. Product is anything that can be offered to a market to satisfy a ______.

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A. NeedsB. WantsC. DemandsD. Needs or WantsE. Needs or Demands

2. ___ are intangible & require more quality control, supplier credibility, & adaptability.

A. Nondurable goodsB. IndustriesC. Durable goodsD. BrandsE. Services

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Marketing-mix Strategy of Product Types

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• 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

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A. Nondurable goodsB. IndustriesC. Durable goodsD. BrandsE. Services

2. ___ are intangible & require more quality control, supplier credibility, & adaptability.

3. The following show the importance of design in product differentiation EXCEPT for

A. Provides competitive edgeB. Gives consumers variety of choicesC. Affects the totality of featuresD. Compelling for start-up companiesE. Positions company’s products &

designs

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Importance of Design in Product Differentiation

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• Design – totality of features – position a company’s product & services– gives competitive edge– compelling to smaller consumer-product companies and

start-ups that don’t have big advertising budget

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3. The following show the importance of design in product differentiation EXCEPT for

A. Provides competitive edgeB. Gives consumers variety of choicesC. Affects the totality of featuresD. Compelling for start-up companiesE. Positions company’s products &

designs

4. The following are the main Service Differentiators EXCEPT for

A. Customer ServiceB. InstallationC. RepairD. Ordering EaseE. Delivery

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Main Service Differentiators

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• Ordering Ease• Delivery• Installation• Customer Training• Customer Consulting

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4. The following are the main Service Differentiators EXCEPT for

A. Customer ServiceB. InstallationC. RepairD. Ordering EaseE. Delivery

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.

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The Product Hierarchy

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Item

Product type

Product line

Product class

Product family

Need family

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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.

6. Which is not true about Packaging?

A. It is the activities of designing & producing the container for a product.

B. It can build brand equity.C. It contributes to instant recognition of the

company and brand.D. Effective packaging must attract attention, show

the content, & make a favorable overall impression.

E. Might include up to 3 levels of material – primary package, secondary package, & shipping package.

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Packaging

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• Activities of designing & producing the container for a product

• 3 levels of material – primary, secondary, shipping package

• Can build brand equity & drive sale• Must attract attention, describe product features,

create consumer confidence, & make favorable overall impression

• Contribute to instant brand/company recognition

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6. Which is not true about Packaging?

A. It is the activities of designing & producing the container for a product.

B. It can build brand equity.C. It contributes to instant recognition of the

company and brand.D. Effective packaging must attract attention, show

the content, & make a favorable overall impression.

E. Might include up to 3 levels of material – primary package, secondary package, & shipping package.

A. CustomizationB. Conformance QualityC. StyleD. DesignE. Feature

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7. Blackberry introduced and used BBM as what type of product differentiation?

Feature

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• Most products can be offered with varying features that supplement their basic function. A company can identify and select appropriate new features by surveying recent buyers then calculating customer value versus company cost for each potential feature.

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7. Blackberry introduced and used BBM as what type of product differentiation?

A. CustomizationB. Conformance QualityC. StyleD. DesignE. Feature

8. The new Tide with Safeguard is an example of what type of co-branding?

A. joint-venture B. same-companyC. retail D. multiple-sponsorE. ingredient branding

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Co-Branding

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• Dual branding / brand bundling• 2 or more well-known brands are combined into a

joint product or marketed together in some fashion

• Same-company co-branding – 2 products under 1 company– Tide and Safeguard are both under Procter & Gamble

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8. The new Tide with Safeguard is an example of what type of co-branding?

A. joint-venture B. same-companyC. retail D. multiple-sponsorE. ingredient branding

9. Apple provides assistance to 1st time buyers/users of the MacBook. This is an example of what type of service differentiation?

A. InstallationB. Customer ServiceC. Customer TrainingD. Customer ConsultingE. Maintenance and Repair

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Customer Training

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• Refers to training the customers use the equipments properly and efficiently

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9. Apple provides assistance to 1st time buyers/users of the MacBook. This is an example of what type of service differentiation?

A. InstallationB. Customer ServiceC. Customer TrainingD. Customer ConsultingE. Maintenance and Repair

10. What type of line stretching did Globe do when it launched TM?

A. Up-Market StretchB. Down-Market StretchC. Straight-Market StretchD. Product StretchE. Two-Way Stretch

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Line Stretching

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• Occurs when a company lengthens its product line beyond its current range.

• Down – Market Stretch – company from upper/middle market introduces a lower-priced line

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10. What type of line stretching did Globe do when it launched TM?

A. Up-Market StretchB. Down-Market StretchC. Straight-Market StretchD. Product StretchE. Two-Way Stretch

TOP 10 Learning Questions for

Chapter 12 – Setting Product Strategy

Ma. Camille V. Villagarcia16 Sept 2010