Module 4 - Product and Brand Strategy

products are classed according to two basic criteria

(1) end use or market and (2) degree of processing or physical transformation

The width of a product mix refers to the:

A number of product lines handled by the organization

A product that is viewed in terms of the essential benefits that a buyer expects to receive from it is called a(n) ____.

Generic product

Approaches to new or potential markets

Geographical expansion of domestic sales New socioeconomic or ethnic groups Overseas markets New uses of present products Complementary goods Mergers and acquisitions

One of the advantages of using ______ is that a firm can distance products from other offerings it markets

Multibranding

Cross-functional teams

Teams requiring the membership and cooperation of all the various functional departments in the organization to create successful new products.

Product mix depth

The average number of products in each product line

In the context of product purchasing, the diffusion of innovation is:

The spread of a product through the population

generic product

a no-frills, no-brand-name, low-cost product that is simply identified by its product category

A company is the leading producer of a product designed to provide training in handling and use of certain levels of a certain product for law enforcement. they use the Firearms Training Systems (FATS), which is also ISO 9000-certified. The ISO 9000-certification means FATS:

meets standardized levels of product quality

Which of the following is an attribute that can be changed to alter a product?

product packaging

marketing myopia

the mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products

What are 6 areas or principles that you will have to apply and justify in order to successfully comply with the government's policy

1. Determine revenue 2. Identify all required resources/costs 3. Convert benefits and resources to dollars 4. Develop capital budget (project analysis worksheet) 5. Develop capital plan (or business plan) 6. Evaluate capital plans to form strategic portfolio

Venture team

A cross-functional team responsible for all of the tasks involved in the development of a new product. When the new product is launched, the team usually turns over responsibility for managing the product to a brand manager or product manager or it may manage the new product as a separate business

Global virtual team

A cross-functional team that operates across time, geographic distance, organizational boundaries, and cultures, whose members communicate mainly through electronic technology (e.g., smartphone, laptop, texting, e-mail, and video conferencing)

Product line

A group of products that share common characteristics, distribution channels, customers, or uses.

Brand

A name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. The legal term for brand is trademark

Fads

A product that experiences an intense but often very brief period of popularity. The faster it becomes popular, the faster it will become unpopular. A few fads may repeat their popularity after long absences.

Dual branding

A strategy in which two or more branded products are integrated. This strategy is sometimes called joint or cobranding.

Product line extension

A strategy of line extension that uses a well-known brand name to enter into a new market segment.

Multi-branding

A strategy that assigns different brand names to each product. The organization makes a conscious decision to allow the products to succeed or fail on their own merits.

Brand extension

A strategy that uses a current brand name to enter a completely different product class.

Fashions

Accepted and popular products that go through a repetitive cycle of popularity, lost popularity, and regained popularity, repeating the cycle again

Goods grown or extracted from the land or sea, such as iron ore, wheat, and sand, are better known as _____.

Agricultural products and raw materials

Alan visits a shopping mall in his neighborhood. He recollects his lessons from a marketing class and attempts to relate them to his observations at the mall. Which of Alan's interpretations is most accurate?

Alan believes that Ming's Corner, a shop that sells 36 different kinds of muffins, has a narrow and deep product mix

The Bedford Hotel is an industry leader in the hospitality and customer service sector. After Templeton Hotel measured its services against Bedford Hotel, it instituted a customer service campaign called "proactive hospitality." Templeton managers examine monthly reports for problem areas, and the Bedford model is used to determine ways to address and resolve these issues. Which of the following methods is used by Templeton to identify improvement areas?

Benchmarking

___________ is the culmination of a consumer's assessment of the product, the company that manufactures and markets the product, and all other variables that affect the product between manufacture and consumer consumption.

Brand equity

In ________, a current brand name is used to enter a completely different product class.

Brand extension would be the correct answer

A company first introduced a line of toothpastes under the company's brand name. The introduction of a mouthwash and a chewing gum using the company's brand name is an example of _________.

Brand extensions, because a current brand name is used to enter a completely different product class

In a _______, a manager is responsible for everything from marketing research and package design to advertising for a single product or a very small group of new and existing products.

Brand manager system

Which of the following statements is true of a brand-manager system?

Brand managers have difficulties in their line of work because they do not have authority commensurate with their responsibilities

Which of the following does a multibranding strategy involve?

Companies assigning different brand names to each of their products

Consumer goods

Consumer goods can be divided into three classes: - Convenience goods, such as food, which are purchased frequently with minimum effort. Impulse goods would also fall into this category. - Shopping goods, such as appliances, which are purchased after some time and energy are spent comparing the various offerings. - Specialty goods, which are unique in some way so the consumer will make a special purchase effort to obtain them.

Value

Encompasses not only quality but also price. Value is what the customer gets for what the customer gives

With regard to the adopter categories of the diffusion of innovation, laggards are:

Fearful of debt but may eventually purchase a well-established brand

An audit of the firm's actual and potential resources

Financial strength Access to raw materials Plant and equipment Operating personnel Management Engineering and technical skills Patents and licenses

When a corporate name is attached to a product to enter into an entirely new market segment, it would be an example of ________.

Franchise extensions

RytWell Inc. is a company that manufacturers pens. It distributes pens to various industries in the United States of America. Because its products are used by almost every company in the market, RytWell Inc. most likely operates in a ______.

Horizontal Market

Which of the following statements about benchmarking is true?

It improves customer order processing activities

Which of the following is true of a global virtual team?

It is a cross functional team that operates across time and geographic distance

The use of a brand name ot facilitate entry into a new market segment without entering a new product class is called _________.

Line extension

The use of a brand name to facilitate entry into a new market segment is called ________.

Line extension

As Alan strolled through a shopping center, he tried to relate his lessons in a marketing class to his observations at the mall. Which of Alan's interpretation do you believe to be most accurate?

Louie's Bakery, which sells 36 different kinds of muffins, would have a deep product mix

Vertical market

Market for organizational products that have a limited number of buyers. A vertical market is narrow because customers are restricted to a few industries and is deep in that a large percentage of the producers in the market use the product.

Horizontal marketing

Market that exists for an organizational product when it is purchased by all types of firms in many different industries. Marketing-manager system: Type of product-management system popular in organizations with a line or lines of similar products or one dom

Approaches to current markets

More of the same products Variations of present products in terms of grades, sizes, and packages New products to replace or supplement current lines Product deletions

State of competition

New entries into the industry Product imitation Competitive mergers or acquisitions

NAICS

North American Industry Classification System A detailed numbering system developed by the U.S., Canada, and Mexico to classify North American business establishments by their main production processes. Provides information about the number of establishments, sales volume, and number of employees in each industry broken down by geographic area

Which of the following statements regarding organizational goods is true?

Organizational goods are often purchased directly from the original source with few middlemen.

A company makes computer painted vinyl signs that are seen stretched across billboards and truck bodies. It purchases rolls of vinyl sheets to make the signs. This is an example of which type of organizational buyer?

Producer

Which represents the largest group of organizational buyers?

Producers

______ constitute a group of organizational buyers who buy goods and services in order to create other goods and services for sale.

Producers

Which of the following is a marketing management technique in which a company's current product offerings are reviewed to ascertain whether each product should be continued as is, improved, modified, or deleted?

Product audit

The full set of products offered for sale by an organization is called a firm's _________.

Product mix

The Organizational Buying Process

Regardless of the type of organization, a buying process is needed to ensure that products and service are purchased and received in a timely and efficient manner

Family branding

Sometimes called franchise extension; an organization's attachment of the corporate name to a product to enter either a new market segment or a different product class

Organizational goods.

Such products are purchased by business firms for the purpose of producing other goods or for running the business. This category includes the following: - Raw materials and semi-finished goods. - Major and minor equipment, such as basic machinery, tools, and other processing facilities. - Parts or components, which become an integral element of some other finished good. - Supplies or items used to operate the business but that does not become part of the final product.

What does the depth of a product mix refer to?

The average number of products in each product line

Which of the following statements regarding quality and value is true?

The concept of value combines the quality and the price elements of the product mix

Product life cycle

The concept that many products go through a cycle; that is, they are introduced, grow, mature, and decline. While the cycle varies according to industry, product, technology and market, it is a valuable aid in developing product and marketing strategies.

Quality

The degree of excellence or superiority that an organization's product or service possesses. It can encompass both the tangible and intangible aspects of a product or service. Although quality can be evaluated from many perspectives, the customer's perception of quality is crucial.

Product mix

The full set of products offered for sale by an organization; described by its width and depth

Product mix width

The number of individual product lines offered by the organization

Tangible product

The physical entity or service that is offered to the buyer; one of the three ways a product can be viewed

Brand equity

The set of assets (or liabilities) linked to the brand that add (or subtract) value. The value of these assets is dependent upon the consequences or results of the market place's relationship with the brand.

Product adoption and diffusion

The spread of a product through the population; encompasses five stages of adopters: innovators, early adopters, early majority, late majority, and laggards

Product

The sum of the physical, psychological, and sociological satisfactions the buyer derives from purchase, ownership, and consumption. This definition is consistent with the marketing concept

Extended product

The tangible product along with the whole cluster of services that accompany it; one of the three ways a product can be viewed

Which of the following statements is true about product quality and value?

The value of a product encompasses not only the quality of the product but also its price

Agricultural products and raw materials

These are goods grown or extracted from the land or sea, such as iron ore, wheat, and sand. In general, these products are fairly homogeneous, sold in large volume, and have low value per unit or in bulk weight.

Which of the following is true of horizontal markets?

These markets offer goods that are purchased by all types of firms in many different industries

Which of the following is a characteristic of early adopters?

They are generally respected social leaders

Identify a true statement about organizational goods.

They are ordered according to the user's specifications.

What is the legal term for a brand?

Trademark

Brand-manager system

Type of product-management system in which a manager focuses on a single product or a very small group of new and existing products. The brand manager is responsible for everything from marketing research and package design to advertising.

Marketing-manager system

Type of product-management system popular in organizations with a line or lines of similar products or one dominant line. One person is responsible for overseeing an entire product line with all of the functional areas of marketing such as research, advertising, sales promotion, sales, and product planning.

Which is an example of an intermediary?

Wal-Mart

A ______ consists of several product lines, or groups of products that share common characteristics, distribution channels, customers, or uses?

a product mix would fit the description with several products

Marketing to producers and intermediaries is called ______.

business-to-business marketing

Classes of Consumer Goods

convenience, shopping, specialty, unsought

Fresh-Cola Inc. is a manufacturer of carbonated drinks that packages its products in bottles, cans, and 12-pack cartons. A standard 12-pack of these drunks can neither fit conveniently in the standard-size refrigerator shelf nor can the drinks be easily dispensed from the carton. Fresh-Cola introduces a new design called "the refrigerator pack." The refrigerator pack is designed to fit easily on a standard refrigerator shelf and dispenses one can at a time. With its new refrigerator pack, Fresh-Cola:

is using packaging as a part of its product differentiation strategy

The blah corporation makes four different varieties of their brand of Maxim cereal. These varieties are Maxim corn flakes, Maxim raisin bran, Maxim honey clusters, and Maxim brown sugar and oats cereal. McGregor Corp. has used a _______ with its Maxim cereal brand.

line extension approach

Products that are purchased by business firms for the purpose of producing other goods or for running a business are called ______.

organizational goods