Chapter 7

Question 1

Product

Answer 1

Anything that can be offered to market for attention, acquisition, use, or consumption that might satisfy a want or need

Question 2

Service

Answer 2

Activity, benefit, or satisfaction offered for sale; intangible and does not result in ownership of anything

Question 3

Market offerings

Answer 3

Includes both tangible goods and services

Question 4

Differentiate offers from competitors

Answer 4

Firms create and manage customer experiences with their brands or companies

Question 5

Three Levels of Product

Answer 5

Level 1: core customer value- what is the customer really buying?

Level 2: actual product- need to develop product and service features, design, quality level, brand name, and packaging

Level 3: augmented product- offering additional customer services and benefits (ex. warranties, repair services)

Question 6

Consumer products

Answer 6

Bought by final consumers for personal consumption

Question 7

Industrial products

Answer 7

Bought by individuals and organizations for further processing or for use in conducting business

Ex. materials and parts, capital items, supplies and services

Question 8

Convenience products

Answer 8

Low price, frequent purchase, little customer involvement, widespread distribution, mass promotion by producer

Question 9

Shopping products

Answer 9

Less frequent purchase, much planning and effort, higher price, selective distribution in fewer outlets, advertising and personal selling by producer and resellers

Question 10

Specialty products

Answer 10

Strong brand preference and loyalty, special purchase effort, little comparison of brands, low price sensibility, high price, exclusive distribution, carefully targeted promotion

Question 11

Unsought products

Answer 11

Little product awareness, price and distribution varies, aggressive advertising and personal selling by producer and resellers

Question 12

Organization marketing

Answer 12

Activities to “sell” your organization

Question 13

Person marketing

Answer 13

Turn a person’s name into a brand

Question 14

Place marketing

Answer 14

Cities, states, regions, nations for tourism, conventions, new residents

Question 15

Ideas can be marketed- social ideas —> social marketing

Answer 15

Using traditional business marketing concepts and tools to create behaviors that will create individual and societal well-being

Question 16

Individual products decisions

Answer 16

1. Product attributes/quality- characteristics of product/service that bear on its ability to satisfy stated or implied customer needs
2. Branding- name, term, sign, symbol, or design or a combination of these that identifies the maker or seller of a product or service
3. Packaging- designing the container or wrapper for product
4. Labeling and logos- help identify products or brand as well as promote and engages customers
5. Product support services- survey customers periodically

Question 17

Product line decisions

Answer 17

Involves product line length, which is the number of items in the product line

Question 18

Product line

Answer 18

Group of products that are closely related because they function in similar matter, sold to same customer groups, and marketed through same types of outlets, or fall winging given price ranges

Question 19

Line stretching

Answer 19

Occurs when a company lengthens the product line beyond its current range

Question 20

Line filling

Answer 20

Involves adding more items within the present range of the line

Question 21

Product mix (product portfolio)

Answer 21

All the product lines that a company has for sale

Question 22

Product mix decisions

Answer 22

1. Width- number of differ product lines the company carries
2. Length- total number of items a company carries within its product lines
3. Depth- number of versions offered for each priding in the line
4. Consistency- how closely related the various product lines are in end use, product requirements, distribution channels, or some other products

Question 23

Four service characteristics

Answer 23

1. Service intangibility- services can not be seen, tasted, felt, heard, or smelled before they are bought.
2. Service inseparability- services can not be separated from their providers
3. Service variability- quality of the services depends on who provides them as well as when where and how they are provided
4. Service perishability- services can not be stored for later sale or use

Question 24

Brand equity

Answer 24

Differential effect that knowing the brand name has on customer response to the product and its marketing

Question 25

Brand value

Answer 25

Total financial value of a brand

Question 26

Consumer perception dimensions

Answer 26

1. Differentiation - what makes the brand stand out
2. Relevance - how consumers feel brand meets their needs
3. Knowledge - how much consumers know about the brand
4. Esteem - how highly consumers regard and respect the brand

Question 27

National/manufacturer’s brands

Answer 27

Marketed under the manufacturer’s own name

Question 28

Store brands

Answer 28

Private brands by retailers and wholesalers

Question 29

Licensing

Answer 29

Created and owned by reseller of a product or service

Question 30

Co-branding

Answer 30

Two established brand names of two different companies are used on the same product

Question 31

Major brand strategy decisions

Answer 31

Brand positioning, brand name selection, brand sponsorship, brand development

Question 32

Line extensions

Answer 32

Company extends an existing brand names to new forms, colors, sizes, ingredients, or flavors of an existing product category

Question 33

Brand extension

Answer 33

Extends an existing brand name to new or modified products in a new category

Question 34

Multi branding

Answer 34

Offers way to establish differ features that appeal to differ customer segments, lock up more reseller shelf space and captures a larger market share

Question 35

New brands

Answer 35

When company believes power of its existing brand name is waning; may create new brand name when it enters new product category