Product Mix, Decisions,and Strategies

Question 1

Anything that can be offered to a market for attention,acquisition, use or consumption that might satisfy a want or need

Answer 1

product

Question 2

are products and services bought by final consumers for personal consumption. It includes:
Convenience Product
Shopping Product
Specialty Product
Unwholesome or Unsought Product

Answer 2

Consumer Goods

Question 3

Brought frequently
and immediately; Low price ; Mass
advertising ; Many purchase locations

Answer 3

Convenience Product

Question 4

:Bought less; Higher
price; Fewer purchase locations ;
Comparison shop ; Consumer evaluates
alternative products based on suitability,
quality, style and price

Answer 4

Shopping Product

Question 5

Special Purchase
efforts ; High price ; Unique
characteristics ; Brand identification ;
Few purchase locations

Answer 5

Specialty Product

Question 6

New innovations ;
Consumers seldom go out looking for;
Require a lot of advertising and personal
selling

Answer 6

Unsought Product

Question 7

are those
products purchased for further
processing or for use in conducting a
business. It includes:
Materials and parts
Capital items
Supplies and services

Answer 7

Industrial products

Question 8

include raw materials
and manufactured materials and parts.

Answer 8

Materials and parts

Question 9

are industrial products that
aid in the buyer’s production or
operations.

Answer 9

Capital items

Question 10

include operating
supplies, repair and maintenance items,
and business services.

Answer 10

Supplies and services

Question 11

refers to all the
products a company
offers to its
customers.
It includes different
categories of
products, each with
multiple options

Answer 11

product mix

Question 12

refers to the number of different
product lines a company offers

Answer 12

Width

Question 13

is the total number of individual
products within the company’s product lines.

Answer 13

Length

Question 14

refers to the variety of versions
available within each product line.

Answer 14

Depth

Question 15

measures how closely related the
various product lines are in terms of use,
production, distribution, or target market.

Answer 15

Consistency

Question 16

refers to the approach a company uses
to manage and grow its range of
products, services, and brand
offerings.

Answer 16

PRODUCT MIX STRATEGY

Question 17

KEY COMPONENTS OF PRODUCT MIX STRATEGY

Answer 17

1. Market Research and Consumer
   Insight
   2.Brand Identity and Positioning
   3.Product Life Cycle Management
   4.Pricing Strategy
2. Distribution Channels

Question 18

Here, companies increase the number
of products in the lines or create
additional lines.
However, the new addition can be
related or unrelated to the existing
lines.

Answer 18

Expansion

Question 19

Another name for ‘expansion’

Answer 19

Diversification

Question 20

Companies review and eliminate
products that are unproductive and
non-profitable.
Here, the marketers narrow down the
width of the mix.

Answer 20

Contraction

Question 21

Another term for ‘contraction’

Answer 21

Simplification

Question 22

It includes the expansion of the
products in the existing lines.
Companies try to widen their product
lines.
Besides, one must note that there is no
new addition to the number of
product lines.

Answer 22

Deepening

Question 23

Companies can alter or improve
existing products despite launching a
new product.
But, companies prefer to alter those
products that are already established
in the markets.This is because it is less
risky yet profitable.

Answer 23

Alteration/Changes

Question 24

Here, the company adds affordable
products to the product line with
premium products.
This is because price-sensitive
customers can buy famous brands’
products at low prices

Answer 24

Trading Down

Question 25

CHANGES IN PRODUCT MIX

Answer 25

1. Competition 2.Firm’s Goodwill 3.Market Demand 4.Company Goals

Question 26

refers to the process of selecting and developing a new product or modifying an existing one in order to meet the needs and preferences of customers while also aligning with the overall business strategy.

Answer 26

Product design

Question 27

Product design involves a range of factors, including

Answer 27

market research consumer trends product design pricing distribution

Question 28

These are high- level decisions that have a long-term impact on the product and the business as a whole.

Answer 28

Strategic Decision

Question 29

These are mid-level decisions that are focused on executing the product strategy.

Answer 29

Tactical Decision

Question 30

These are low- level decisions that are focused on the day-to-day management of the product.

Answer 30

Operational Decision

Question 31

Example of a strategic decision

Answer 31

choosing the target market, defining the product vision, and setting the overall product strategy

Question 32

Example of a tactical decision

Answer 32

selecting the features to be included in the product, determining the pricing strategy, and deciding on the distribution channels

Question 33

Example of an operational decision

Answer 33

managing the production process, handling customer support issues, and conducting market research.

Question 34

is a group of similar products manufactured and sold by one company.

Answer 34

Product Line

Question 35

consists of every product a business develops and sells. the combined total of all the product lines sold in a company

Answer 35

Product Mix

Question 36

FACTORS THAT DETERMINE PRODUCT LINE

Answer 36

Price range Functionality Target audience and brand.

Question 37

FACTORS THAT DETERMINE PRODUCT MIX

Answer 37

Company's age Financial standing Brand identity

Question 38

Evolution of a single product from its birth to death. Course of a product’s sales and profits over its lifetime.

Answer 38

Product Life Cycle

Question 39

New product introduced to buyers. Small sales. High production costs. Intensive advertising.

Answer 39

Introduction Stage

Question 40

Rapid sales. New and repeat buyers emerge. Costs decrease. Experience curve Economies of size

Answer 40

Growth Stage

Question 41

Increased production requires more capital and expertise. High profit margins. Increasing demand = businesses can sell at higher prices. Competition enters.

Answer 41

Growth Stage

Question 42

Market saturation. Longest phase. Fewer first-time buyers. Profit margins shrink. Sales peak. Intense competition.

Answer 42

Mature Stage

Question 43

Sales drop. Buyers shift to other products. Market exit for some businesses. Efforts to revive product may stabilize or improve sales.

Answer 43

Decline Stage

Question 44

Process of evaluating a company's portfolio of products to determine which products are performing well. Identify a product’s position within its market.

Answer 44

Product Portfolio Analysis

Question 45

Model that analyzes a product in terms of their market share.

Answer 45

Boston Consulting Group (BCG) Matrix

Question 46

Intensive promotion. Competitors are attracted. Intensive production. High capital investment to increase capacity. Popular drugs with growing sales Ozempic (semaglutide)

Answer 46

Star

Question 47

Established drugs, stable sales. High market share. Low market growth. Less advertising. Mature, established markets. Low growth rate discourages competition. Steady demand, little new growth. Lipitor (atorvastatin).

Answer 47

Cash cows

Question 48

aka “Problem children” Low market share. High market growth. Many new products at first. Become stars or cash cows if successful. Has potential for growth but requires high investment. Leqembi (lecanemab) – for Alzheimer's.

Answer 48

Question mark

Question 49

Outdated, declining demand. Low market share. Low market growth.

Answer 49

Dog

Question 50

Process that determines the best way to communicate a product’s attributes to target customers.

Answer 50

Product Positioning

Question 51

products that are entirely new inventions

Answer 51

New-to-the-world

Question 52

products where a company enters an established market for the first time.

Answer 52

New product lines

Question 53

new items that supplement a company’s established product lines.

Answer 53

Additions to existing product lines

Question 54

involve enhancing the performance or perceived value of current products.

Answer 54

Improvements and revisions of existing products

Question 55

occurs when a company targets its existing products to new markets or new market segments.

Answer 55

Repositioning

Question 56

involve creating new products that provide similar performance at a lower cost.

Answer 56

cost reduction

Question 57

The initial stage of brainstorming potential new product ideas. Ideas can come from company employees, customers, competitors, distributors, and suppliers.

Answer 57

Idea Generation

Question 58

This process aims to filter out poor ideas and identify promising ones by evaluating factors like market size, product price, development time and costs, manufacturing costs, and rate of return against company criteria

Answer 58

Idea Screening

Question 59

This stage involves developing the product idea into a detailed product concept stated in meaningful consumer terms and testing consumer reactions to these concepts. It distinguishes between a product idea, a product concept, and a product image

Answer 59

Concept Development and Testing

Question 60

This step involves reviewing the sales, costs, competition, investment, and profit projections to assess the new product's fit with company objectives. If the analysis is favorable, the project moves to the product development phase

Answer 60

Business Analysis

Question 61

By American Marketing Association, _______ can be defined as name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or a group of sells and to differentiate them from those of other sellers

Answer 61

brand

Question 62

is a process, where a company generates loyalty among consumers in the market. Should have a strong connection with the customers

Answer 62

branding