Ch12 Setting Product Strategy Villapando

TOP 10 Learning Questions for

Setting Product Strategy - Ch 12

Kristian N. Villapando

December 2010

www.kungfukristianvillapando.blogspot.com

1. ________ refers to goods the consumer does not know about or does not normally think of buying.

A. Unsought Goods

B. Unnoticed Goods

C. Unobserved Goods

D. Unseen Goods

E. Concealed Goods


Consumer Goods Classification


• Convenience• Shopping• Specialty• Unsought

Consumer Goods Classification


• Convenience• Shopping• Specialty• Unsought goods are those the consumer

does not know about or does not normally think of buying and require advertising and personal-selling support. Example: funeral plans

1. ________ refers to goods the consumer does not know about or does not normally think of buying.

A. Unsought Goods

B. Unnoticed Goods

C. Unobserved Goods

D. Unseen Goods

E. Concealed Goods


2. Downy Airy Fresh, Floral, Rich & Creamy and Scent Free refers to Procter & Gamble’s product mix _________.

A. Width

B. Length

C. Depth

D. Consistency

E. Type


Product Systems and Mixes


• Depth• Length• Width• Consistency

Product Systems and Mixes


• Depth of a product mix refers to how many variants are offered of each product in the line. Downy is offered in Airy Fresh, Floral, Rich & Creamy, Scent Free, etc.

• Length• Width• Consistency

http://www.downy.com/en-US/scents.jspx

2. Downy Airy Fresh, Floral, Rich & Creamy and Scent Free refers to Procter & Gamble’s product mix _________.

A. Width

B. Length

C. Depth

D. Consistency

E. Type


3. Which of the following is false?

A. Performance is a product differentiator

B. Durability is a product differentiator

C. Style is a product differentiator

D. Delivery is a product differentiator

E. None of the above


Product Differentiation

• Product Form• Features• Customization• Performance• Conformance• Durability• Reliability• Style


Service Differentiation: when the physical product cannot easily be differentiated, the key may lie in adding valued services

• Ordering ease• Delivery • Installation• Customer training• Customer consulting• Maintenance & repair• Returns


3. Which of the following is false?

A. Performance is a product differentiator

B. Durability is a product differentiator

C. Style is a product differentiator

D. Delivery is a product differentiator



4. Which of the following is true?

A. The basic product is the fundamental level where customer value starts to develop.

B. Competition takes place at the expected product level for all markets/countries.

C. Potential product encompasses possible augmentations and transformations a product might undergo.

D. The basic product consists of a set of expected attributes and conditions buyers purchase.

E. All of the above


Five Product Levels


1st level: Core Benefit

2nd level: Basic Product

3rd level: Expected Product

4th level: Augmented Product

5th level: Potential Product

Five Product Levels


• Core benefit: fundamental level; service or benefit the customer is really buying

• Basic product: level where the service or benefit is turned into a product

• Expected product: level where basic product meets buyer attributes/conditions expectations (where competition takes place in developing and emerging markets)

• Augmented product: level where product exceeds customer expectations (where competition takes place in developed countries)

• Potential product: possible augmentations and transformations in the future

4. Which of the following is true?

A. The basic product is the fundamental level where customer value starts to develop.

B. Competition takes place at the expected product level for all markets/countries.

C. Potential product encompasses possible augmentations and transformations a product might undergo.

D. The basic product consists of a set of expected attributes and conditions buyers purchase.

E. All of the above


5. Globe offers the iPhone 4 (16GB) unit for free at plan PHP 3,799 for a lock-in period of 24 months. This is what type of Product-Mix Pricing?

A. Two-part pricing

B. Product-bundling pricing

C. Optional-feature pricing

D. Product-line pricing

E. Captive-product pricing


Product-Mix Pricing


• Product-line pricing• Optional-feature pricing• Captive-product pricing• Two-part pricing• By-product pricing• Product-bundling pricing

Product-Mix Pricing


• Product-line pricing• Optional-feature pricing• Captive-product pricing: some products require the

use of ancillary products; the iPhone 4 in this example is an ancillary product.

• Two-part pricing• By-product pricing• Product-bundling pricing

5. Globe offers the iPhone 4 (16GB) unit for free at plan PHP 3,799 for a lock-in period of 24 months. This is what type of Product-Mix Pricing?

A. Two-part pricing

B. Product-bundling pricing

C. Optional-feature pricing

D. Product-line pricing

E. Captive-product pricing


6. San Miguel Corporation’s product portfolio of beverages, food, packaging, agri & feeds and properties is an example of product-mix ________?

A. Consistency

B. Variation

C. Width

D. Size

E. Length


Product Mix


• Width, refers to how many different product lines the company carries

• Length, refers to the total number of items in the product mix

• Depth, refers to how many variants are offered for each product in the line

• Consistency, refers to how closely related the various product lines are in end use

6. San Miguel Corporation’s product portfolio of beverages, food, packaging, agri & feeds and properties is an example of product-mix ________?

A. Consistency

B. Variation

C. Width

D. Size

E. Length


7. Papers used in producing books is under what type of Industrial Goods Classification?

A. Capital items

B. Supplies & business services

C. Materials and parts

D. Specialty goods

E. Durable goods


Industrial Goods Classification


• Materials & parts• Capital items• Supplies & business services



• Materials & parts, goods that enter the manufacturer’s product completely

• Raw materials• Farm products• Natural products: lumber, iron ore

• Manufactured materials• Component materials: iron, yarn, cement• Component parts: tires



• Capital items, long-lasting goods that facilitate developing or managing the finished product

• Installations: factories, offices• Equipment: hand tools, personal computers

• Supplies & business services, short-term goods and services that facilitate developing or managing the finished product

• Maintenance & repair items: paint, broom• Operating supplies: pencils, papers• Maintenance & repair services: cleaning, door repairs• Business advisory services: legal, consulting

7. Papers used in producing books is under what type of Industrial Goods Classification?

A. Capital items

B. Supplies & business services

C. Materials and parts

D. Specialty goods

E. Durable goods


8. The following statements are true, except _____.

A. Product map shows which competitors’ items are competing against yours.

B. Product map helps determine possible locations for new items.

C. Product map helps identify market segments.

D. Product map helps in product-line analysis.

E. Helps decide on key areas: product-line length and width.


Product-Line Analysis


• The product map shows which competitors’ items you are competing with, reveals possible locations for new items, identifies market segments and provides information for two key decision areas – product-line length & product-mix pricing.

8. The following statements are true, except _____.

A. Product map shows which competitors’ items are competing against yours.

B. Product map helps determine possible locations for new items.

C. Product map helps identify market segments.

D. Product map helps in product-line analysis.

E. Helps decide on key areas: product-line length and width.


9. Occurs when a company goes beyond its current product-line range.

A. Product-line expansion

B. Product-line extension

C. Line Stretching

D. Product Specialization



Line Stretching


• A company’s product line covers a certain range, for companies to penetrate markets beyond its current range they can stretch their line down-market, up-market or both ways.

9. Occurs when a company goes beyond its current product-line range.

A. Product-line expansion

B. Product-line extension

C. Line Stretching

D. Product Specialization



10. The following factors contribute to the emphasis on packaging, except_______.

A. Durability

B. Self-service

C. Consumer affluence

D. Company and brand image

E. Innovation opportunity


Packaging as a Marketing Tool


• Self-service: favorable overall impression• Consumer affluence: convenience,

appearance, prestige• Company & brand image: instant recognition• Innovation opportunity: increased benefits to

consumers and profits to producers

10. The following factors contribute to the emphasis on packaging, except_______.

A. Durability

B. Self-service

C. Consumer affluence

D. Company and brand image

E. Innovation opportunity


TOP 10 Learning Questions for

Setting Product Strategy - Ch 12

Kristian N. Villapando

December 2010


Ch12 Setting Product Strategy Villapando

Business

Transcript of Ch12 Setting Product Strategy Villapando