Chapter 10 - Managing the Product

Question 1

Product Line

Answer 1

A firm’s total product offering designed to satisfy a single need or desire of target customers.

Question 2

Full Line

Answer 2

A large number of variations is a product line.

- targets many customer segments to boost sales potential.

Question 3

Limited-line strategy

Answer 3

• Fewer product variations

- Perceived to have a clear, specific position in the market.

Question 4

Line stretches

Answer 4

• Upward = higher priced, quality
• Downward = adds items at the lower end
• Two-way = Adds to upper and lower ends
• Filling-out = adding sizes or styles not previously available
• Contract = eliminate a line

Question 5

Cannibalization

Answer 5

The loss of sales of an existing brand when a new item in a product line or product family is introduced.

Question 6

Product Mix

Answer 6

The total set of all products a firm offers for sale.

Question 7

Product Life Cycle

Answer 7

Concept that explains how products go through four distinct stages from birth to death: introduction, growth, maturity, and decline.

Question 8

Introduction Stage

Answer 8

• 1st stage
• Slow growth follows the introduction of a new product in the marketplace
• Innovators
• Get buyers to try the product.

Question 9

Growth Stage

Answer 9

• 2nd stage
• Profits/Revenues peak before sales peak.
• Opinion Leader
• The product is accepted and sales rapidly increase.

Question 10

Maturity Stage

Answer 10

• 3rd stage
• Sales peak and profit margins narrow.
• Majority

Question 11

Decline Stage

Answer 11

• 4th Stage
• Sales decrease as customer needs change.
• Laggards

Question 12

Decline Stage Strategies

Answer 12

1. Modify Product
2. Decrease Price
3. Reposition

Question 13

Brand

Answer 13

A name, a term, a symbol, or any other unique element of a product that identifies one firm’s product(s) and sets them apart from the competition.

Question 14

Trademark

Answer 14

The legal term for a brand name, brand mark, or trade character; trademarks legally registered by a government obtain protection for exclusive use in that country.

Question 15

Brand Equity

Answer 15

The value of a brand to an organization.

- Customer loyalty, perceived quality, and brand name awareness.

Question 16

Brand Extensions

Answer 16

A new product sold with the same brand name as a strong existing brand.

Question 17

Family Brand

Answer 17

A brand that a group of individual products or individual brands share.

Question 18

National or Manufacturer Brands

Answer 18

Brands that the manufacturer of the product owns.

Question 19

Private-label Brands

Answer 19

Brands that are owned and sold by a certain retailer or distributor.

Question 20

Licensing (of a name)

Answer 20

Agreement in which one firm sells another firm the right to use a brand name for a specific purpose and for a specific period of time.

Question 21

Co-branding

Answer 21

An agreement between two brands to work together in marketing a new product.

Question 22

Ingredient Branding

Answer 22

A form of co-branding in which branded materials are used as ingredients or component parts of other branded products.

Question 23

Package

Answer 23

The covering or container for a product that provides protection, facilitates product use and storage, and supplies important marketing communication.

Question 24

Universal Product Code (UPC)

Answer 24

The set of black bars or lines printed on the side or bottom of most items sold in grocery stores and other mass-merchandising outlets. The UPC, readable by scanners, creates a national system of product identification.

Question 25

Brand Manager

Answer 25

An individual who is responsible for developing and implementing the marketing plan for a single brand.

Question 26

Product Category Manager

Answer 26

An individual who is responsible for developing and implementing the marketing plan for all of the brands and products within a product category.

Question 27

Market Manager

Answer 27

An individual who is responsible for developing and implementing the marketing plans for products sold to a particular customer group.

Question 28

Venture Teams

Answer 28

Groups of people within an organization who work together focusing exclusively on the development of a new product.