Chapter 7

Question 1

Products are divided into what three main categories

Answer 1

1. non durable goods (these do not last and are consumed only once or limited number of times)
2. Durable goods (product that lasts for an extended period of time like appliances)
3. Service (intangible activity, benefit, or satisfaction)

Question 2

What are two types of services

Answer 2

Primary services and complementary services

Question 3

Define the service continuum

Answer 3

A range from tangible goods to intangible services.

Question 4

What are the 4 I’s of services (the 4 unique elements to services)

Answer 4

1. intangibility (services are intangible)
2. Inconsistency (quality of service depends on who provides it)
3. Inseparability (consumers do not separate the deliverer of the service from the service itself)
4. Inventory (inventory problems exist because services cannot be stored and accessed when in demand)

Question 5

Define idle production capacity

Answer 5

When the supply of a service exceeds its demand.

Question 6

Marketers view products as having what 3 layers

Answer 6

The core product, the actual product, and the augmented product

Question 7

What does the core product mean

Answer 7

The fundamental benefit that a consumer derives from having the product.

ex. for a bicycle it would be the transportation that it provides

Question 8

What does the actual product mean

Answer 8

The physical good or the services that a customer purchases. Includes the products branding, design, and features

Question 9

What does the augmented product mean

Answer 9

The additional features and attributes that accompany a product.

ex. might be the warranty or delivery option, etc.

Question 10

What is the importance of packaging

Answer 10

• it has functional benefits
• can communicate information about the product
• reinforces the band image

Question 11

Define a product line

Answer 11

A group of similar products that are closely related because they satisfy a similar need and are directed at the same general target market. (groups of products that are closely related under an umbrella product line and brand name)

Question 12

Define a product mix

Answer 12

All the product lines marketed by a company.

Question 13

Define product mix width

Answer 13

refers to the number of different product lines offered by the company

ex. For Procter and gamble it is 4 (family care, beauty, fabric and home care, health/grooming products)

Question 14

Define product line length

Answer 14

The total number of products or brands in a product line.

ex. Procter and gamble beauty product line has eight products so its product line length is 8

Question 15

Define product line depth

Answer 15

The assortment of different versions of each product sold within its product lines.

ex. dawn dish detergent has 18 different versions

Question 16

Products are classified into what two categories

Answer 16

Either consumer or business products

Question 17

What are consumer products

Answer 17

Products purchased for their personal use by the ultimate consumer.

Question 18

What are business products

Answer 18

Products that are purchased either to run a business or to be used as a component in another product or service. Also called industrial goods or organizational products.

Question 19

The consumer market consists of what 4 categories of products

Answer 19

1. Convenience
2. Shopping
3. Specialty
4. Unsought

Question 20

Describe convenience products (a type of consumer product)

Answer 20

Items purchased frequently that are inexpensive and require minimum risk and shopping effort.

ex. bread, gum, or potato chips

Question 21

Describe shopping products (a type of consumer product)

Answer 21

Items that require comparison shopping between different brands and an investment of shopping time.

ex. Jeans, airline tickets, electronic items

Question 22

Describe specialty products (a type of consumer product)

Answer 22

Items for special occasions that require a specific product or brand and require considerable time and effort to purchase.

• more expensive branded products that are needed for special occasions
  -ex. rolex, taking a cruise

Question 23

Describe unsought products ( a type of consumer product)

Answer 23

Unknown items or those of no interest to the purchaser

ex. home insurance for people who do not own a home

Question 24

Business product sales are often the result of

Answer 24

Derived demand - sales of business products frequently result (or are derived) from the sale of consumer products.

ex. As tesla car (consumer product) sales increase they may increase their demand for paint spraying equipment (a business product)

Question 25

Business products are classified into what two categories

Answer 25

1.production goods and services 2. support goods and services

Question 26

What are production goods and services (type of business product)

Answer 26

Items used in the MANUFACTURING process that become part of the final product are production goods and services. These can include raw materials like grain, lumber or component parts such as door hinges used by tesla in its car doors

Question 27

What are support goods and services (type of business product)

Answer 27

These are items used to assist in producing other goods and services. Includes: - installations like buildings and fixed equipment - accessory equipment like tools and office equipment - supplies like stationary - services needed to assist a business in its operations

Question 28

Define a brand

Answer 28

A name, phrase, symbol, or design uniquely given by a company to a product to distinguish it from the competition

Question 29

define brand equity

Answer 29

The value of a brand that results from the favorable exposure, interactions, associations, and experiences that consumers have with a brand over time. (the support that goes into marketing a brand results in strong brand associations and a certain degree of consumer loyalty)

Question 30

Ipsos conducted a most influential brand study and found what key dimensions that defined and determined the most influential brands in Canada

Answer 30

- trustworthiness ( most important) - engagement - leading edge - corporate citizenship -presence - covid 19

Question 31

What are global brands

Answer 31

Brands that are sold in a variety of international markets and that enjoy wide recognition in these markets.

Question 32

Brands are classified into what two categories

Answer 32

individual brands or family brands - depending on whether the name has been extended to cover more than one product category

Question 33

what are individual brands

Answer 33

When a company uses a brand name solely for a specific product category ex. Tide brand name used only for detergent

Question 34

What is a family brand

Answer 34

When a company uses a brand name to cover a number of different product category ex. Crest is used for toothpaste, dental floss, mouthwash, and teeth-whitening products

Question 35

What is a brand extension

Answer 35

When new goods or services are introduced under an existing flagship brand name.

Question 36

what is a sub brand

Answer 36

A brand that uses the family brand name as well as its own brand name and identity so that it can take on the strengths of the parent brand but also differentiate itself. ex. prosche --> has prsche carrera and a lower end porsche boxster

Question 37

define patents

Answer 37

Used to legally protect new technologies, unique processes, or formulations from usage by other companies. - provide a time limited, legally protected, exclusive right to make, use and sell an invention

Question 38

Define copyrights

Answer 38

Used to legally protect original written works, sound recordings, or forms of communication from being copied by others. - covers music, literature, and performances

Question 39

Define trademarks

Answer 39

Used by people or organizations to protect brand images, names, slogans, and designs from usage by others.

Question 40

Define brand loyalty

Answer 40

Favourable attitude toward and consistent purchase of a single brand over time; the degree of target market commitment toward a brand over time that results in varying levels of purchase commitment.

Question 41

Define brand personality

Answer 41

A set of human characteristics associated with a brand. ex. harley davidson traits are seen as masculinity, defiance, and rugged individualism

Question 42

what are the points to consider when developing a new brand name

Answer 42

- name should suggest the product benefits - name should be memorable, distinctive, and positive - name should fit the company or product image - name should have the ability to be legally protected - the name should be simple

Question 43

What are the 3 types of brands

Answer 43

1. manufacturer's brands 2. private label brands 3. generic brands

Question 44

what is a manufacturer's brand

Answer 44

A brand owned and produced by the manufacturer.

Question 45

what is a private label brand

Answer 45

Otherwise known as a store brand, a brand owned by a retailer that contracts its manufacturing to major suppliers, and then sells the product at its own retail stores, under its own store-brand name.

Question 46

what is a generic brand

Answer 46

A product that has no branding and is produced as a cheap alternative to a manufacturer’s brand and to branded private-label products.