Product

Question 1

Definition of a product

Answer 1

A product is anything of value that can be offered to consumers in an exchange

Question 2

What does a product include

Answer 2

core benefit
brand name logo
actual good/service
package/label
customer service activities
warranty/guarantee

Question 3

How do you classify products

Answer 3

-Degree of tangibility
-end user

Question 4

WHat is degree of tangibility

Answer 4

pure tangible: goods (waterbottle)

good/service: combo (starbucks)

pure intangible: services (disney)

Question 5

what are the two types of end users

Answer 5

Consumers (B2C): purchased by consumers for personal use

Business products (B2B): purchased by org to assist in providing product for resale.

Question 6

4 categories of B2C products

Answer 6

Convenience products
purchased frequently, minimum effort to search and compare (toothpaste)

shopping products
compare several alternatives like price, quality (camera)

specialty products
special effort to search but less effort to compare bc it’s unique (luxury sport)

unsought products
consumer don’t know about or don’t initially want (3D printing)

Question 7

Look at the table of basis of comparison

Question 8

What are the product life cycle stages

Answer 8

R&D, introduction ,growth, maturity, decline

Question 9

what are the characteristics in introduction stage

Answer 9

low sales, negative profits, innovative customers, few competitors, marketing objectives: create awareness

Question 10

what are the characteristics in growth stage

Answer 10

rising sales and profits, customers: early adopters, comeptitors: growing
marketing awareness: max market share

Question 11

what are the characteristics in maturity stage

Answer 11

peaks sales, high profit, majority customers, competitors stable, marketing objectives: max profit

Question 12

what are the characteristics in decline stage

Answer 12

decline sales, profit, and competitors. Laggards customers.
marketing objectives: outlast competitors/ redefine product

Question 13

What is the BCG matrix

Answer 13

market growth rate (y axis) - relative market share (x-axis)

Question marks: Products with high market growth but a low market share.
Stars: Products with high market growth and a high market share.
Dogs: Products with low market growth and a low market share.
Cash cows: Products with low market growth but a high market share.

Question 14

question mark correspond to what stage

Answer 14

introduction

Question 15

star correspond too what stage

Answer 15

start of growth

Question 16

cash cows correspond to what stage

Answer 16

start of maturity stage

Question 17

dogs correspond to what stage

Answer 17

end of maturity stage

Question 18

what is a product line

Answer 18

a group of products that satisfy a class of
needs to the same customer group, often distributed
through the same channels

Question 19

what is a product mix

Answer 19

sum of the product lines a company has

Question 20

what is the width of product mix

Answer 20

the number of different line

Question 21

what is the depth of product mix

Answer 21

number of product in each line

Question 22

What is a brand formally:

Answer 22

a proprietary trademark for a specific product
or service

Question 23

What is a brand conceptually

Answer 23

a “contract” between the company and
its customers; a promise of specific benefits, quality,
value, and experiences; a relationship… strongly related to positioning

Question 24

characteristics of a product

Answer 24

tangible, easily copied, becomes irrelevant, a transaction

Question 25

characteristics of a brand

Answer 25

intangible, cant be imitated, timeless adaptable, a relationship

Question 26

what is brand equity

Answer 26

The added (or diminished) value that a given brand name lends to a product beyond the core product itself

Question 27

value related to brand equity

Answer 27

awareness perceived value brand associations brand loyalty

Question 28

what are the 4 brand strategies

Answer 28

line extension, category extension, multibranding, new brands LOOK at table to see axis (brand name, product category)

Question 29

what is line extension

Answer 29

new products in the same general category that closely resemble successful products (tide)

Question 30

what are the 2 types of line extensions

Answer 30

horizontal extensions: keeping price and quality consistent, but changing factors like flavor, color, or format to differentiate the product. vertical extensions increasing and/or decreasing quality and price to create lower-priced, middle-priced, and higher-priced options

Question 31

What is cannibalization

Answer 31

When the new extension product takes sales away from the old product net zero benefit to company bad for retailers : waste shelf space on products that steal sales from one another without increasing overall sales

Question 32

What is category extension

Answer 32

using same brand name to lunch new products in different category - Dole canned fruits, salad

Question 33

How to do category extension well

Answer 33

transferability of company assets (two goods use same material) complementarity of use (coffee machine, coffe pod) functional associations (ivory shampoo: cleanness) emotional associations same target segment baby good, baby clothes

Question 34

What are the advantages of category extension

Answer 34

Enable a company to enter new categories at significantly lower cost and risk Reinforce positioning of parent brand

Question 35

risks of category extension

Answer 35

Could dilute or disrupt brand image A managerial bias: since established brand is strong, why should we spend money and effort promote the brand extension?

Question 36

what is multi branding

Answer 36

like line extension, but with a different brand name. Launch several products within same market and different brand names

Question 37

Advantages of multibranding

Answer 37

1.saturate the market: fill all price/quality gaps 2.Occupy shelf space, leaving little room for competitors. 3. Cater to brand-switchers 4. Generate internal competition to keep brand managers on their toes.

Question 38

What is co-branding

Answer 38

The practice of using established brand names of two or more companies on the same product. Credit card, bank TD, air canada