Principles of Marketing: Ch. 7

What are the four choices a company has for developing brands?

Line extensions, brand extensions, multibrands, and new brands

What is a product? What are the three levels of a product?

A product is anything that can be offered to the market to use, attention, acquisition, or consumption that may satisfy a need or want. The three levels of a product are the core customer value, the actual product, and the augmented product. The most basic level, core customer value, addresses the question, what is the customer really buying. For example, when someone buys an Apple iPad, they're buying more than just a tablet computer. They're buying self-expression, entertainment, and connectivity. At the second level, product planners must turn a core benefit into the actual product - design, quality level, features, brand name, and packaging. For example, the iPad is the actual product. Its name, design, features, etc. come together to deliver the core customer value. Finally, product planners must build an augmented product around the core benefit and actual product by offering additional consumer benefits and services. For example, Apple may offer to deliver the product, provide a warranty, after-purchase repairs, and product support, along with access to an assortment of apps and accessories, along with an iCloud service that integrates all buyers' photos, contacts, music, etc. across all other devices from any location.

Which of the following correctly identifies the five important decisions marketers must make when developing individual products and services? (what's your acronym to remember this answer) A. Product​ attributes, branding,​ packaging, labeling, and product support services B. ​Branding, pricing,​ advertising, distribution, and product support services C. Product​ attributes, branding, quality​ level, pricing, and distribution D. Quality​ level, pricing,​ advertising, distribution, and promotion E. Product​ attributes, pricing,​ advertising, distribution, and promotion

A. Product attributes, branding, packaging, labeling, and product support services PBPLP - Pablo's blinded partially like Pablo.

What are the two broad classifications of products? (explain each) A. Consumer products and industrial products B. Consumer products and household products C. Necessity products and luxury products D. Grocery products and luxury products E. Consumer products and business products

A. Consumer products and industrial products Explain each: - Consumer products: products and services bought by final customers for personal consumption - Industrial products: products and services purchased for further processing or for use in conducting a business

Explain, with examples, the four characteristics of services that a company must consider when designing marketing programs.

A company must consider services' intangibility, inseparability, perishability, and variability. Intangibility means that services cannot be touched, seen, or heard before they are purchased. For example, when choosing to undergo cosmetic surgery, the customer cannot see the result before purchasing. Inseparability means that services cannot be separated from their providers - employees thus become a part of the service. The surgeon providing cosmetic surgery is now a part of the offering as well. Service variability means that the quality of the service not only depends on who provides it but where, when, and how it's provided. Thus, the quality of cosmetic surgery may also depend on the doctor's office, how far it is from the customer, etc. Finally, service perishability means that services cannot be stored for later sale or use. For example, when a patient misses a doctor's appointment, some physicians may charge considering the full value of the service only existed at that point and disappeared when they did not show it.

The four major brand strategy decisions involve brand ____. (try to name on your own - what's your acronym) A. ​equity, name​ selection, sponsorship, and development B. ​positioning, name​ selection, sponsorship, and development C. equity, value, name​ selection, and positioning D. ​equity, identity, name​ selection, and logo selection E. name​ selection, logo​ selection, sponsorship, and identity

B. Positioning, name selection, sponsorship, and development

The major product line decision involves the line's _____, or number of items in the product line A. scope B. length C. portfolio D. mix

B. length

Services are characterized by four key aspects (try to list without looking): A. services are​ intangible, inexpensive, easy to​ find, and automated. B. services are​ intangible, inseparable,​ variable, and perishable. C. services are​ intangible, variable,​ perishable, and inexpensive. D. services are​ inexpensive, easy to​ find, intangible, and variable. E. services are​ intangible, perishable,​ consistent, and inseparable.

B. services are intangible, inseparable, variable, and perishable

Discuss the concept of brand positioning

Brand positioning is marketers positioning a brand in the minds of their target audience. It exists on three levels: attributes, benefits, and beliefs/values. The attributes level bases positioning on the product's features/characteristics. This is the least desirable level of positioning. However, stronger brands go on to position based on the benefits the product - what the customer can gain from the purchase. Finally, the strongest brands utilize positioning based on beliefs/values. This allows the customer to build a strong emotional connection to brand, enticing initial purchase and customer loyalty. (use Pamper's example if necessary)

Which of the following is the correct definition of a product? (what distinguishes the correct answer from the others?) A. A product is anything that can be offered to a market for consumption that does not satisfy a want or need. B. A product is a tangible good or a service that can be offered to a market for​ attention, acquisition,​ use, or consumption that does not satisfy a want or need. C. A product is anything that can be offered to a market for​ attention, acquisition,​ use, or consumption that might satisfy a want or need. D. A product is a tangible good that can be offered to a market for​ attention, acquisition,​ use, or consumption that might satisfy a want or need. E. A product is anything that can be offered to a market for​ attention, acquisition,​ use, or consumption that might satisfy a want or need.

E. A product is a tangible good or service that can be offered to a market for consumption that might satisfy a need or want What distinguishes the correct answer? - ANYTHING (not a tangible good or service) - Can be offered for attention, acquisition, use, or consumption (not just one-three of these) - DOES satisfy a need or want

Which of the following statements is true regarding the marketing of services?A. ​Buyer-seller interaction during the service encounter has little impact on service quality. B. Customer-facing employees are not important in the marketing of services. C. Service providers do not need to differentiate their offerings. D. Service providers do need to use segmentation and target marketing. E. For service​ providers, a solution to price competition is to develop a differentiated​ offer, delivery, and image.

E. For service providers, a solution to price competition is to develop a differentiated offer, delivery, and image