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