chapter 12 – setting product strategy
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![Page 1: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/1.jpg)
TOP 10 Learning Questions for
Chapter 12 – Setting Product Strategy
Ma. Camille V. Villagarcia16 Sept 2010
![Page 2: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/2.jpg)
1. Product is anything that can be offered to a market to satisfy a ______.
A. NeedsB. WantsC. DemandsD. Needs or WantsE. Needs or Demands
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Product Characteristics & Classifications
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• Product– Tangible or intangible– Anything offered in a market
• Satisfy consumers’ wants or needs
– ex: goods, services, experiences, information, ideas, etc
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1. Product is anything that can be offered to a market to satisfy a ______.
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A. NeedsB. WantsC. DemandsD. Needs or WantsE. Needs or Demands
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2. ___ are intangible & require more quality control, supplier credibility, & adaptability.
A. Nondurable goodsB. IndustriesC. Durable goodsD. BrandsE. Services
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Marketing-mix Strategy of Product Types
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• Nondurable – availability in many locations, small markup, heavy advertisement
• Durable – personal selling & service, higher margin, more seller guarantee
• Service – more quality control, supplier credibility, adaptability
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A. Nondurable goodsB. IndustriesC. Durable goodsD. BrandsE. Services
2. ___ are intangible & require more quality control, supplier credibility, & adaptability.
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3. The following show the importance of design in product differentiation EXCEPT for
A. Provides competitive edgeB. Gives consumers variety of choicesC. Affects the totality of featuresD. Compelling for start-up companiesE. Positions company’s products &
designs
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Importance of Design in Product Differentiation
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• Design – totality of features – position a company’s product & services– gives competitive edge– compelling to smaller consumer-product companies and
start-ups that don’t have big advertising budget
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3. The following show the importance of design in product differentiation EXCEPT for
A. Provides competitive edgeB. Gives consumers variety of choicesC. Affects the totality of featuresD. Compelling for start-up companiesE. Positions company’s products &
designs
![Page 11: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/11.jpg)
4. The following are the main Service Differentiators EXCEPT for
A. Customer ServiceB. InstallationC. RepairD. Ordering EaseE. Delivery
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Main Service Differentiators
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• Ordering Ease• Delivery• Installation• Customer Training• Customer Consulting
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4. The following are the main Service Differentiators EXCEPT for
A. Customer ServiceB. InstallationC. RepairD. Ordering EaseE. Delivery
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5. Which of the following is false?
A. Product family satisfy a core need with reasonable effectiveness.
B. Need family is the core need that underlies the existence of a product family.
C. Product line shares one of several possible forms of the product.
D. Product class is also know as product category.E. Product class is a group w/in product family
recognized as having a certain functional coherence.
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The Product Hierarchy
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Item
Product type
Product line
Product class
Product family
Need family
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5. Which of the following is false?
A. Product family satisfy a core need with reasonable effectiveness.
B. Need family is the core need that underlies the existence of a product family.
C. Product line shares one of several possible forms of the product.
D. Product class is also know as product category.E. Product class is a group w/in product family
recognized as having a certain functional coherence.
![Page 17: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/17.jpg)
6. Which is not true about Packaging?
A. It is the activities of designing & producing the container for a product.
B. It can build brand equity.C. It contributes to instant recognition of the
company and brand.D. Effective packaging must attract attention, show
the content, & make a favorable overall impression.
E. Might include up to 3 levels of material – primary package, secondary package, & shipping package.
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Packaging
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• Activities of designing & producing the container for a product
• 3 levels of material – primary, secondary, shipping package
• Can build brand equity & drive sale• Must attract attention, describe product features,
create consumer confidence, & make favorable overall impression
• Contribute to instant brand/company recognition
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6. Which is not true about Packaging?
A. It is the activities of designing & producing the container for a product.
B. It can build brand equity.C. It contributes to instant recognition of the
company and brand.D. Effective packaging must attract attention, show
the content, & make a favorable overall impression.
E. Might include up to 3 levels of material – primary package, secondary package, & shipping package.
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A. CustomizationB. Conformance QualityC. StyleD. DesignE. Feature
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7. Blackberry introduced and used BBM as what type of product differentiation?
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Feature
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• Most products can be offered with varying features that supplement their basic function. A company can identify and select appropriate new features by surveying recent buyers then calculating customer value versus company cost for each potential feature.
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7. Blackberry introduced and used BBM as what type of product differentiation?
A. CustomizationB. Conformance QualityC. StyleD. DesignE. Feature
![Page 23: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/23.jpg)
8. The new Tide with Safeguard is an example of what type of co-branding?
A. joint-venture B. same-companyC. retail D. multiple-sponsorE. ingredient branding
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Co-Branding
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• Dual branding / brand bundling• 2 or more well-known brands are combined into a
joint product or marketed together in some fashion
• Same-company co-branding – 2 products under 1 company– Tide and Safeguard are both under Procter & Gamble
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8. The new Tide with Safeguard is an example of what type of co-branding?
A. joint-venture B. same-companyC. retail D. multiple-sponsorE. ingredient branding
![Page 26: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/26.jpg)
9. Apple provides assistance to 1st time buyers/users of the MacBook. This is an example of what type of service differentiation?
A. InstallationB. Customer ServiceC. Customer TrainingD. Customer ConsultingE. Maintenance and Repair
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Customer Training
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• Refers to training the customers use the equipments properly and efficiently
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9. Apple provides assistance to 1st time buyers/users of the MacBook. This is an example of what type of service differentiation?
A. InstallationB. Customer ServiceC. Customer TrainingD. Customer ConsultingE. Maintenance and Repair
![Page 29: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/29.jpg)
10. What type of line stretching did Globe do when it launched TM?
A. Up-Market StretchB. Down-Market StretchC. Straight-Market StretchD. Product StretchE. Two-Way Stretch
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Line Stretching
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• Occurs when a company lengthens its product line beyond its current range.
• Down – Market Stretch – company from upper/middle market introduces a lower-priced line
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10. What type of line stretching did Globe do when it launched TM?
A. Up-Market StretchB. Down-Market StretchC. Straight-Market StretchD. Product StretchE. Two-Way Stretch
![Page 32: Chapter 12 – Setting Product Strategy](https://reader035.vdocuments.us/reader035/viewer/2022081716/548591eab4af9ff33d8b459a/html5/thumbnails/32.jpg)
TOP 10 Learning Questions for
Chapter 12 – Setting Product Strategy
Ma. Camille V. Villagarcia16 Sept 2010