Product and service strategy

Question 1

What stage is product and service strategy a part of?

Answer 1

It’s part of the marketing mix.

Question 2

What are the four Ps?

Answer 2

Product, price, place, and promotion.

Question 3

What is the definition of a product?

Answer 3

Anything that is offered in a market for attention,, acquisition, use, or consumption that satisfies a need or a want.

Question 4

What does a product include?

Answer 4

Physical objects, persons, services, events, places, organization, and ideas

Question 5

What are the three levels of a product?

Answer 5

-The middle: Core benefit

-The second ring: Actual product

-The third ring: Augmented product

Question 6

What is an augmented product?

Answer 6

Store atmosphere or in-store service such as warranty, installation, and after sales service

Question 7

What are the convenience, shopping, specialty, and unsought characteristics of purchase behavior?

Answer 7

-Convenience: Frequent purchases that take little time and effort
-Shopping: Infrequent purchases like comparison shopping
-Specialty: Infrequent purchases that include special brand preference
- Unsought: Little product awareness, knowledge, or interest

Question 8

Examples of convenience, shopping, specialty, and unsought products?

Answer 8

-Convenience: Newspapers, toothpaste, snacks
-Shopping: Furniture, Tv, clothes
-Specialty: Luxury goods/designer items
-Unsought: Life insurance and retirement plan

Question 9

what are the price components for convenience, shopping, specialty, and unsought products?

Answer 9

-Convenience: Low
-Shopping: Higher
-Specialty: Very high
-Unsought: Can vary

Question 10

Place components of convenience, shopping, specialty, and unsought products?

Answer 10

-Convenience: Widespread distribution and convenient locations
-Shopping: Selective distribution
-Specialty: Exclusive and limited
Unsought: Varies

Question 11

Promotion components of convenience, shopping, specialty, and unsought products?

Answer 11

-Convenience: Mass advertising and sales promotion
-Shopping: Advertising emphasizing differentiation with personal selling as well
- Specialty: Targeted Promotion
- Unsought: Aggressive advertising and personal selling

Question 12

What are the individual product decisions?

Answer 12

Product attributes, branding, packaging, labeling, product support services

Question 13

What are the product mix decisions?

Answer 13

Product mix width, length, depth, and product mix branding

Question 14

What are examples of product attributes?

Answer 14

attributes/feature, product benefits(Social, hedonic, functional), quality, design

Question 15

Advantages of branding

Answer 15

– To buyers
* Identify products
* Convey quality, value, & image
– To sellers
* Differentiation/ Segmentation
* Legal protection

Question 16

What are the characteristics of a good brand name?

Answer 16

Suggests product benefits, easy to pronounce and remember, distinctive, extendable, Translatable, and capable of legal registration/protection

Question 17

What are manufacturer brands?

Answer 17

These are national brands like coke or Samsung.

Question 18

What are private brands?

Answer 18

Private brands that are more region specific like e-mart.

Question 19

What is co branding?

Answer 19

When two established brands of different firms are used in the same product.

Question 20

Components of brand equity?

Answer 20

Brand image, awareness, preference, loyalty trust

-Less price sensitivity and line extension/brand extension

Question 21

What makes a good brand image?

Answer 21

When it’s distinctive, salient, and favorable

Question 22

What are the functions of packaging?

Answer 22

Protection, identification, and info about product quality

Question 23

What are product support services?

Answer 23

Augmented products that help increase relationships and differentiation

Question 24

What are the examples of augmented services?

Answer 24

Delivery and credit, installation, warranty, after sales service

Question 25

What is a product mix?

Answer 25

All of the lines and items that a firm offers for sale

Question 26

What is product mix width?

Answer 26

Number of different product lines carried by a company(the bigger picture or categories of items like detergents, toothpastes, etc.)

Question 27

What is the product mix length?

Answer 27

Number of different items within a product line

Question 28

What is line filling?

Answer 28

Line Filling: A strategy where a company adds more items within its existing product line to fill gaps or offer more variety. This is done to target different customer preferences, increase market share, and reduce competition by offering a broader range of options at different price points or features

Question 29

What is it when u line stretch upward or downward?

Answer 29

Line Stretching: Expanding a product line by adding new products at different price or quality levels.

Upward Stretching: Adding higher-end or premium products to the line to target more affluent customers and enhance brand prestige.

Downward Stretching: Adding lower-end or more affordable products to the line to attract price-sensitive customers and capture a larger market segment.

Question 30

What is it when a product category is existing and a brand name is existing?

Answer 30

Line extension

Question 31

What is it when a product category is existing but the brand name is new?

Answer 31

Multibrands

Question 32

What is it when a product category is new but the brand name is existing?

Answer 32

Brand extension

Question 33

What is it when a product category is new and the brand name is new?

Answer 33

New brands.

Question 34

Characteristics of line extension? What are the advantages and risks?

Answer 34

• Line Extension
  – Existing brand names extended to new forms, sizes, and
  flavors of an existing product line
  – Advantages
• Low-cost & risk; Variety
• Variety
  – Risks
• Diluted image; Poor performance of one

Question 35

What are the characteristics of multi brands? What are the advantages and risks as well?

Answer 35

Multibrands
– New brand names introduced in the same product line
– Advantages
* Each brand is unique to each market segment
– Disadvantages
* Increased cost

Question 36

What are the characteristics of brand extensions? What are the advantages and disadvantages as well?

Answer 36

Existing brand names extended to new product lines
– Advantages
* Instant recognition and acceptance à Low promotion cost
* Extension to complementary goods
– EX: HP printer à HP printer ink
– Disadvantages
* Damage and dilution of the original brand
– EX: Heinz à Heinz pet food
* Inappropriate brand image
– EX: Colgate gum
– Important consideration
* Perceived fit (similarity in products and image)

Question 37

What is a service?

Answer 37

Any act of performance that one party can offer another that is
essentially intangible and does not result in the ownership of
anything (e.g., Banking, Hotels, Airlines, Tax preparation)

Question 38

What are the mixes of tangible and intangible goods and services?

Answer 38

Pure tangible good, Both tangible good and service, and pure service

Question 39

What are the characteristics of intangible services?

Answer 39

• Services can’t be seen, tasted, felt, heard, or smelled before purchase
• Making intangible service tangible in promotion(Visualization, and metaphor)

Question 40

What are the characteristics of Inseparability

Answer 40

• Services can’t be separated from their providers
• Importance of face to face interaction

Question 41

What are the characteristics of Variability

Answer 41

• The quality of the service depends on who provides them, and when, where, and how
  -Quality control is important

Question 42

What are the characteristics of perishability?

Answer 42

• Services can’t be stored for later use or sale
• Variable pricing for fluctuating demand