Marketing Mix Product 1 (Lecture 12)

Question 1

def. product line

Answer 1

group of products that are closely related as they satisfy a class of needs

• usually used together
• sold to same customer group
• distributed through the same type of outlets
• fall within a given price range

Question 2

how do companies consider each product in a product line?

Answer 2

as a specific product with a unique identity number

Question 3

def. product mix

Answer 3

the number of product lines offered by a company

Question 4

What are the two ways to classify products (general categories)?

Answer 4

1. type of users

2. degree of tangibility (and endurance)

Question 5

what are the two types of goods for different users

Answer 5

business goods

consumer goods

Question 6

what are the two types of goods in terms of degree of tangibility and endurance?

Answer 6

• durable goods

- services

Question 7

What are the four main types of consumer goods?

Answer 7

1. convenience goods
2. shopping goods
3. specialty goods
4. unsought goods

Question 8

def. convenience good

Answer 8

purchased frequently with minimum shopping effort

consumer good,

Question 9

def. shopping good

Answer 9

consumers compare them on several attributes

consumer good,

Question 10

def. specialty goods

Answer 10

items for which the consumer makes a special effort to obtain

consumer good,

Question 11

def. unsought goods

Answer 11

goods that the consumer either does not know about or does not initially want

consumer good,

Question 12

T or F: classifications of consumer goods are absolute (ie they do not change)

Answer 12

false

classifications may vary from one consumer to another

Question 13

what is a major aspect of a business good?

Answer 13

that their sales are often derived from the sales of consumer goods (derived demand)

Question 14

What are the two kinds of business goods?

Answer 14

1. production goods

2. support goods

Question 15

def. production goods

Answer 15

items used in the manufacturing process that become a part of the final product

business good

Question 16

def. support goods

Answer 16

• items purchased and used to assist in the production of the final product
• -ex. installations, accessory equipment, supplies, service to assist buyers

business good

Question 17

What are the four different kinds of newness?

Answer 17

1. Newness compared with existing products (improving upon the existing product
2. newness in legal terms (eg 12 months old)
3. newness from the company’s perspective
4. newness from the consumer’s perspective (involving substantive learning by the consumer)

Question 18

what are the 3 levels of newness from the company’s perspective

Answer 18

brand extension, significant innovation, revolutionary products

Question 19

what are the 3 kinds of innovation (ie newness from consumer’s perspective)?

Answer 19

• continuous innovation (no new behaviours must be learned)
• dynamically continuous innovation(minor behaviours are learned)
• discontinuous innovation (entirely new behaviours must be learned)

Question 20

What are the 7 categories of new services

Answer 20

1. Major service innovations (radically new services and processes)
2. Major process innovations (major process change to deliver service in a new way)
3. service-line extensions (service extensions by banks offering insurance to their customers)
4. process-line extensions (more improved process for more convenience, less time, higher value, etc.)
5. supplementary-service innovations (offering additional services)
6. basic service improvements (serving better and faster by modest changes)
7. style changes (simplest typeof change; changing styles (ex. uniforms, colour schemes))

Question 21

What are some reasons new products services fail?(7)

Answer 21

1. insignificant “point of difference” from the competition
2. incomplete market and product definitions
3. too little market-attractiveness
4. poor execution of the marketing mix
5. poor product quality on critical factors
6. bad timing (too soon, too late, trends shifting,etc.)
7. no economical access to buyers (shelf-space)

Question 22

What are some organizational problems behind new product failures?

Answer 22

1. not really listening to the “voice of the consumer”
2. skipping steps in the new product (important to set and observe “gates” and “milestones”)
3. pushing a poorly conceived product into the market to generate quick revenue and ignoring the support work necessary
4. “Groupthink” (everyone conforming to others) in task force and committee meetings
5. not learning critical take-away lessons from past failures

Question 23

what can help you evaluate performance compared to goal?

Answer 23

marketing dashboards