Chapter 12 – Setting Product Strategy
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Transcript of Chapter 12 – Setting Product Strategy
TOP 10 Learning Questions for
Chapter 12 – Setting Product Strategy
Ma. Camille V. Villagarcia23 Sept 2010
1. _____ is the service that the customer is really buying.
A. Potential ProductB. Expected ProductC. Core BenefitD. Basic ProductE. Augmented Product
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Five Product Levels
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Core Benefit is the fundamental level!
The service or benefit the customer is really buying
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1. _____ is the service that the customer is really buying.
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A. Potential ProductB. Expected ProductC. Core BenefitD. Basic ProductE. Augmented Product
2. ___ are intangible & require more quality control, supplier credibility, & adaptability.
A. Nondurable goodsB. IndustriesC. Durable goodsD. BrandsE. Services
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Durability and Tangibility
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Durable Goods
Nondurable Goods
Services
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
2. ___ are intangible & require more quality control, supplier credibility, & adaptability.
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A. Nondurable goodsB. IndustriesC. Durable goodsD. BrandsE. Services
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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Product Differentiation
Product Form Durability
Features Reliability
Customization Repairability
Performance Style
Conformance Design
Importance of Design in Product Differentiation
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
3. The following show the importance of DESIGN in product differentiation except for:
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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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Service Differentiation
1. Ordering ease2. Delivery3. Installation4. Customer training5. Customer consulting6. Maintenance & repair7. Returns
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
Item
Product type
Product line
Product class
Product family
Need family
The Product Hierarchy
Need family – core need that underlies the existence of a product family
Product family – satisfy a core need with reasonable effectiveness
Product class – grp w/in product family recognized as having a certain functional coherence
Product line – grp w/in product class that are related bec they perform a similar function
Product type – grp w/in product line that share 1 of several possible forms of the product
Item – distinct unit w/in a brand
5. Which of the following is false?
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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 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 CE. None of the above.
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Packaging Objectives
Identify the brand Convey descriptive and persuasive
information Facilitate product transportation &
protection Assist at-home storage Aid product consumption
6. Which is not true about Packaging?
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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 CE. None of the above.
7. Blackberry introduced and used BBM as what type of product differentiation?
A. CustomizationB. Conformance QualityC. StyleD. DesignE. Feature
Product Differentiation
Product Form Durability
Features Reliability
Customization Repairability
Performance Style
Conformance Design
Feature
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.
7. Blackberry introduced and used BBM as what type of product differentiation?
A. CustomizationB. Conformance QualityC. StyleD. DesignE. Feature
8. The new ‘Tide with power of Safeguard’ is an example of what type of co-branding?
A. joint-venture B. same-companyC. retail D. multiple-sponsorE. ingredient
branding
Co-Branding
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
8. The new ‘Tide with power of 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
Service Differentiation
1. Ordering ease2. Delivery3. Installation4. Customer training5. Customer consulting6. Maintenance & repair7. Returns
Customer Training
Refers to training the customers to use the equipments properly and efficiently
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
Line Stretching
Down-MarketStretch
Up-Market Stretch
Two-Way Stretch
Line Stretching
Down-MarketStretch
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
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. Villagarcia23 Sept 2010