Test 3

Question 1

What is a product?

Answer 1

A product is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need

Question 2

What is a Service?

Answer 2

A service is an activity, benefit, or satisfaction offered for sale; it is intangible and does not result in ownership of anything

Question 3

What are the three levels to Product?

Answer 3

Augmented Product - Delivery and credit, after sale service, product support, warranty
Actual product - brand name, quality, features, design, packaging
Core Customer Value - What is the customer really buying

Question 4

Consumer products

Answer 4

Consumer products are bought by final consumers for personal consumption.
Classifications:
Convenience, shopping, specialty, unsought

Question 5

Industrial Products

Answer 5

Industrial products are bought by individuals and organizations for further processing or for use in conducting a business.
Classifications:
Materials and parts, capital items, and supplies and services

Question 6

Marketing Considerations for Consumer Product Classifications

Answer 6

Convenience
Customer behavior
Price
Distribution (place)
Promotion
Shopping
Specialty
Unsought

Question 7

Customer buying behavior
Specialty

Unsought:

Convenience:

Shopping:

Answer 7

Specialty: Strong brand preference and loyalty; special purchase effort; little comparison of brands; low price sensitivity

Unsought: Little product awareness or knowledge (or, if aware, little or even negative interest

Convenience: Frequent purchase; little
planning, little comparison
or shopping effort; low
customer involvement

Shopping: Less frequent purchase; much planning and shopping effort; comparison of brands on price, quality, and style

Question 8

Price
Specialty

Unsought:

Convenience:

Shopping:

Answer 8

Specialty: High Price

Unsought: Varies

Convenience: Low price

Shopping: Higher Price

Question 9

Distribution
Specialty

Unsought:

Convenience:

Shopping:

Answer 9

Specialty: Exclusive distribution in only one or a few outlets per market area

Unsought: varie

Convenience: Widespread distribution;
convenient locations

Shopping: Selective distribution in fewer outlets

Question 10

Promotion
Specialty

Unsought:

Convenience:

Shopping:

Answer 10

Specialty: More carefully targeted promotion by both the producer and resellers

Unsought: Aggressive advertising and personal selling by the producer and resellers

Convenience: Mass promotion by the
producer

Shopping: Advertising and personal selling by both the producer and resellers

Question 11

Examples
Specialty

Unsought:

Convenience:

Shopping:

Answer 11

Specialty: Luxury goods, such as Rolex watches or fine crystal

Unsought: Life insurance and Red Cross blood donation

Convenience: Toothpaste, magazines,
and laundry detergent

Shopping: Major appliances, televisions, furniture, and clothing

Question 12

Individual Product and Service Decisions

Answer 12

1. Product attributes (Quality feature, style)
2. Branding
3. Packaging
4. Labeling
5. Product Support Services

Question 13

Product Quality

Answer 13

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

Question 14

Style

Answer 14

a Products appearance

Question 15

Design

Answer 15

incorporates appearance and how the product’s features and functionality are executed

Question 16

Branding, Packaging, Labelling

Answer 16

Branding
Name, term, sign, symbol, or design (or a combination) that identifies the maker or seller of a product or service
Packaging

Question 17

Buyer Decision Process

Answer 17

need recognition
information search
evolution of alternatives
Purchase Decisions
Post-purchase behavior

Question 18

Product Line Decisions

Answer 18

A product line is closely related products that:
Have similar functions and customer groups
Are sold through similar outlets or fall within given price ranges
Product line length is the number of items in the product line.
Product line filling
Product line stretching ($)

Question 19

All product lines —> ____

Answer 19

Product mix

Question 20

Product Mix Decisions (4 parts)

Answer 20

Width: Number of different product lines the company carries

Length: Total number of items a company carries within its product lines

Depth: Number of versions offered for each product in the line

Consistency: How related are the various product lines in end use, production requirements, distribution channels, or some other aspect

Question 21

Four Service Characteristics

Answer 21

Intangibility: Service cannot be seen, tasted, felt, heard, or smelled before purchase

Inseperatablitity: Services cannot be separated from their providers

Variability: Quality of services depends on who provides them and when, where, and how

Perishability: Services cannot be stored for later sale or use

Question 22

Service profit chain

Answer 22

Happy trained employees create a superior experience
—->
Happy, loyal customers
—->
Happy investors

Question 23

Three Types of Services Marketing

Answer 23

Internal marketing
external marketing
interactive marketing

Question 24

Managing service differentiation, quality, productivity

Answer 24

Managing service differentiation: Developing a differentiated offer, delivery, and image

Managing service quality: Delivering consistently higher quality than the competitors Implement service recovery when necessary

Managing service productivity: Training current employees or hiring new ones Increasing the quantity of service by giving up some quality Harnessing the power of technology

Question 25

brands

Answer 25

The major enduring asset of a company If every asset we own, every building, every piece of equipment were destroyed in a terrible natural disaster, we would be able to borrow all the money to replace it very quickly because of the value of our brand…The brand is more valuable than the totality of all these assets.” ---former CEO, McDonalds

Question 26

Brand equity

Answer 26

The differential effect that knowing the brand name has on customer response to the product and its marketing. Positive brand equity – consumers react more favorably to the brand compared to other brands or generic (unbranded) versions of the same product. High brand equity: High level of consumer awareness High level of consumer loyalty Supports line and brand extensions Protects against competitive threats

Question 27

4 parts to Brand strength

Answer 27

Differentiation What makes the brand stand out Relevance Do consumers feel it meets their needs Knowledge How much do consumers know about the brand Esteem How highly consumers regard and respect the brand.

Question 28

Strong brand equity

Answer 28

brand rates high on all brand strength dimensions

Question 29

Brand Positioning and Brand Name Selection

Answer 29

Marketers should establish a mission and vision for the brand when positioning it. Desirable qualities for a brand name should be Based on the product’s benefits and qualities Easy to pronounce, recognize, and remember Distinctive and extendable Easily translated into foreign languages Capable of registration and legal protection

Question 30

Brand Sponsorship

Answer 30

National brands Marketed under the manufacturer’s own name Private (or store) brands Created and owned by a reseller of a product or service Licensing Use names and symbols created by other companies for a fee Co-branding Use the established brand names of two different companies on the same product

Question 31

Brand Development Strategies (table)

Answer 31

existing existing: Line extension Existing new: multibrands and brand extension New New: New brands