Intro to Marketing: Chapter 9

What does product quality mean?

"The overall ability of the product to satisfy customer's expectations."

Hence the common advertising saying...

"We offer a long line of....commercial garage door products", etc.

What's the goal in this stage?

Decide whether to keep the product or to phase it out.

What's the final stage of the Product Life Cycle?

Decline

The first step to managing products is:

Develop Product Objectives 1. For individual products 2. For product lines and mixes

Steps to Manage Products. Develop Product Objectives for what two things?

Develop Product Objectives 1. For individual products 2. For product lines and mixes Design Product Strategies Make Tactical Product Decisions 1. Product branding 2. Packaging and labeling design

Scion augments its line by adding new model that costs less and is smaller than the others. What strategy is it?

Downward Line Extension

Scion adds new car models priced similarly to existing models, or decides to offer new styles of its current model line. What strategy is it?

Filling-out Line Extension

Within its Fabric & Home Care product line, P&G has a large number of product variations, so marketers call that what kind of strategy?

Full Line

What is the goal in this first stage?

Get first-tmp buyers to try the new product.

What's the second stage of the Product Life Cycle?

Growth

Who is responsible for coordinating the mix of product lines within the more general product category?

Product Category Managers

When marketers discuss a firm's total product offering designed to satisfy a single need or desire, (such as P&G's Fabric & Home Care products), what term should they use?

Product Line

A firms entire range of products is called its what?

Product Mix

Before marketers can develop product strategies, they must first develop:

Product Objectives

What means developing Product Line & Product Mix strategies encompassing multiple offerings, i.e. multiple products (brands)?

Product Planning

Branding provides the ___________________ factor products need to succeed in regional, national and international markets.

Recognition

Scion adds a new car model that is either higher priced or offers more quality, bells, and whistles than existing models. What strategy is it?

Upward Line Extension

How can a Limited-line Strategy (few product variations) actually improve a company's image?

The limited length of the line helps the company market its product as "exclusive" or "rare"

When discussing Width of Product Mix what are marketers referring to?

The number of Product Lines within a firm's Product Mix.

What does Product Line Length refer to?

The number of separate items within the same Product Line.

When does Cannibalization occur?

When the new items eats up sales of an existing brand as the firm's current sutures simply switch to the new product.

Can a product's package communicate brand personality?

Yes

Can a brand name position a product?

Yes A brand name can position a product by conveying a certain image or personality or by describing how it works.

Is it true that a brand identifies one firm's products and sets them apart from the competition?

Yes Branding is about giving the product an identity and a personality.

Is this usually the longest stage of the Product Life Cycle?

Yes, and competition often gets intense.

Whenever a product line or a product family is extended, is there a risk of Cannibalization?

Yes.

A line stretch is a good idea (and a good strategic objective) when consumers perceive the product line extension as meeting a need that is what?

not being currently addressed (not met by other products).

Successful marketers must infuse _______________ into all elements of the Marketing Mix.

quality

What's the goal in this stage?

Attract new users through as many outlets as possible.

Who is responsible for positioning of brands, developing brand equity?

Brand Manager

What is the most used and most recognized form of branding?

Brand Name It must have positive connotation and be memorable.

when do brands (products) die?

Brands die when their meanings become no longer relevant in consumer's worlds.

The product life cycle is a useful way to explain how consumer response to a product, and the company's marketing activities/strategies for that product, do what?

Change over the life of a product.

The brand manager of Frito-Lay Potato Chips and the brand manager of KC masterpiece Barbecue Sauce decided to combine their brands to make Lay's Barbecue Chips. What branding strategy is that?

Co-Branding

A package provides what two types of identification for a product?

1. Brand 2. Name

Strong _____________ are built on strong ________________________.

1. Brands 2. Meanings

The best brands build an emotional ____________________ with their customers.

1. Emotional

The marketing team at Proctor & Gamble is discussing the firm's Product Mix. What are they referring to? the firm's _______________ _____________________ ____ _____________________.

1. Entire 2. Range 3. Of 4. Products

Product marketing strategies must __________________ & ________________ as products progress through their life cycle.

1. Evolve 2. Change

Key aspects to focus on: _____________________ of quality & ___________________________ of quality.

1. Level 2. Consistency

In order to be effective, Product Objectives must meet what 4 criteria?

1. Measurable 2. Clear & Unambiguous 3. Feasible 4. Time-framed

Graphics for a brand symbol, name, or logo:

1. Must be recognizable and memorable 2. Should have visual impact

For new products, objectives relate heavily to very successful _____________________ _______________________________.

1. Product 2. Introduction

What are the 4 components of the Marketing Mix?

1. Product 2. Price 3. Promotion 4. Place

When marketers develop Product Strategies, they make tactical decisions about lots of things:

1. Product benefits 2. Features 3. Styling 4. Branding 5. Packaging 6. Labeling

Effective product packaging uses colors, words, shapes, designs, and pictures to:

1. Protect the product 2. Make the package a more user-friendly (easier for consumers to handle and store the product) 3. Provide specific information consumers want and need

Brands must be easy to what?

1. Say 2. Spell 3. Read 4. Remember

Benefits of UPC:

1. Speeds check-out. 2. Tracks sales for inventory control

The way to build strong brands is to build ______________ bonds with customers-bonds based on meaning.

1. Strong

Brands must fit what?

1. The target market 2. The product's benefits 3. The customer's culture 4. Legal requirements

Some successful marketers enhance their firm's brand recognition by creating ____________ ________________.

1. Trade 2. Characters

Products within the same line are ___________________, i.e. they are ___________________ types of products.

1. related 2. similar

Branding is an extremely important (and expensive) element of product strategies. What percent of new products introduced each year fail?

95%

In the U.S., what is the symbol for a trademark that has been registered?

A capital "R" in a circle

We divide the life of a product into 4 states. What's the first stage of the Product Life Cycle?

Introduction

The M&Ms telephone is not made by Mars Candy Company. So how can the maker of this telephone legally use the M&M characters? Via a:

Licensing Agreement

What are guard bars?

Longer black bars on UPC code that separates two groups of six digits.

Who focuses on customer groups rather than on the products made by the firm?

Market Managers

What happens to Sales & Profits during the Decline Stage of the Product Life Cycle?

Market shrinks, Sales and profits both continue to fall.

What's the third stage of the Product Life Cycle?

Maturity

In many ways, the practice of brand management revolves around the management of ________________.

Meanings.

Is it true that quality is tied to a technological level of perfection rather than how customers think a product should or will perform?

NO. Just the opposite is true.

Does registering in the U.S. guarantee international trademark protection?

NO. Trademark protection applies only in the individual countries where the owner registers the brand. Unauthorized use of trademarks on counterfeit goods is a huge headache for many companies.

What is the UPC?

National system of product identification. It works via OCR.

Licensing Agreement:

One firm sells another firm the right to use a legally protected brand name for a specific purpose and for a specific period of time.

What is Green Packaging?

Packaging made with environmentally-friendly materials.

What happens to Sales & Profits during the Introduction Stage of the Product Life Cycle?

Sales climb, but profits are low because the company is advertising heavily and recovering R&D costs.

What happens to Sales & Profits during the Growth Stage of the Product Life Cycle?

Sales continue to climb, Profits peak and then begin to fall.

What happens to Sales & Profits during the Maturity Stage of the Product Life Cycle?

Sales peak, then begin to fall. Profits continue to fall, profit margins narrow.

With a Full Line Strategy (a large number of similar products) marketers can target multiple customer segments in order to improve what?

Sales potential

In which of its product lines is P&G using a Limited Line Strategy?

Snacks & Beverages

Which of the following can be a brand? 1. A name 2. A term 3. A symbol 4. A unique element of a product

They all can

Which elements of The Marketing Mix require quality?

They all do

What's the goal in this stage?

To encourage brand loyalty.

Why do marketers register trademarks?

To make their use by competitors illegal.

Many firms with a quality focus have adopted the principles and practices of TQM which is an acronym for what?

Total Quality Management

What is the legal term for a brand name, brand mark, or trade character?

Trademark

UPC stands for and means:

Universal Product Code. The set of black bars or lines printed on the side of bottom of most items sold in retail outlets.