Chapter 6: Product and Brand Strategy

Question 1

Brand

Answer 1

A name, term, design, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. The legal term for brand is ‘trademark.’

Question 2

Brand Equity

Answer 2

The set of assets (or liabilities) linked to the brand that add (or subtract) value. The value of these assets is dependent upon the consequences or results of the marketplace’s relationship with the brand.

Question 3

Brand Extension

Answer 3

A strategy that uses a current brand name to enter a completely different product class.

Question 4

Brand-Manager System

Answer 4

Type of product management system in which a manager focuses on a single product or a very small group of new and existing products. The brand manager is responsible for everything from marketing research and package design to advertising.

Question 5

Cross-Functional Teams

Answer 5

Teams requiring the membership and cooperation of all the various functional departments in the organization to create successful new products.

Question 6

Dual Branding

Answer 6

A strategy in which two or more branded products are integrated. This strategy is sometimes called joint or cobranding.

Question 7

Extended Product

Answer 7

The tangible product along with the whole cluster of services that accompany it; one of the three ways a product can be viewed.

Question 8

Fads

Answer 8

A product that experiences an intense but often very brief period of popularity. The faster it becomes popular, the faster it will become unpopular. A few fads may repeat their popularity after long absences.

Question 9

Family Branding

Answer 9

Sometimes called franchise extension; an organization’s attachment of the corporate name to a product to enter either a new market segment or a different product class.

Question 10

Fashions

Answer 10

Accepted and popular products that go through a repetitive cycle of popularity, lost popularity, and regained popularity, repeating the cycle again.

Question 11

Generic Product

Answer 11

Product that includes the essential benefits the buyer expects to receive; one of the three ways a product can be viewed.

Question 12

Horizontal Marketing

Answer 12

Market that exists for an organizational product when it is purchased by all types of firms in many different industries.

Question 13

Marketing-Manager System

Answer 13

Type of product management system popular in organizations with a line or lines of similar products or one dominant line. One person is responsible for overseeing an entire product line with all of the functional areas of marketing such as research, advertising, sales promotion, sales, and product planning.

Question 14

Multibranding

Answer 14

A strategy that assigns different brand names to each product. The organization makes a conscious decision to allow the products to succeed or fail on their own merits.

Question 15

Product

Answer 15

The sum of the physical, psychological, and sociological satisfactions the buyer derives from purchase, ownership, and consumption. This definition is consistent with the marketing concept.

Question 16

Product Adoption and Diffusion

Answer 16

The spread of a product through the population; encompasses five stages of adopters: innovators, early adopters, early majority, late majority, and laggards

Question 17

Product Life Cycle

Answer 17

The concept that many products go through a cycle; that is, they are introduced, grow, mature, and decline. While the cycle varies according to industry, product, technology, and market, it is a valuable aid in developing product and marketing strategies.

Question 18

Product Line

Answer 18

A group of products that share common characteristics, distribution channels, customers, or uses.

Question 19

Product Line Extension

Answer 19

A strategy of line extension that uses a well-known brand name to enter into a new market segment.

Question 20

Product Mix

Answer 20

The full set of products offered for sale by an organization; described by its width and depth.

Question 21

Product Mix Depth

Answer 21

The average number of products in each product line.

Question 22

Product Mix Width

Answer 22

The number of individual product lines offered by the organization.

Question 23

Quality

Answer 23

The degree of excellence or superiority that an organization’s product or service possesses. It can encompass both the tangible and intangible aspects of a product or service. Although quality can be evaluated from many perspectives, the customer’s perception of quality is crucial.

Question 24

Tangible Product

Answer 24

The physical entity or service that is offered to the buyer; one of the three ways a product can be viewed.

Question 25

Value

Answer 25

Encompasses not only quality but also price. Value is what the customer gets for what the customer gives.

Question 26

Venture Team

Answer 26

A cross-functional team responsible for all of the tasks involved in the development of a new product. When the new product is launched, the team usually turns over responsibility for managing the product to a brand manager or product manager or it may manage the new product as a separate business.

Question 27

Vertical Market

Answer 27

Market for organizational products that have a limited number of buyers. A vertical market is narrow because customers are restricted to a few industries and is deep in that a large percentage of the producers in the market use the product.