Product Decisions

Question 1

What is a product?

Answer 1

A product is anything that can be offered to a market to satisfy a want or need.

Question 2

What are the layers of a product?

Answer 2

Core product
Actual product
Augmented product

Question 3

What does the core product consist of?

Answer 3

It consists of all the benefits of a product will provide for consumers.

Question 4

What does the actual product consist of?

Answer 4

It consists of the physical goods/delivered service that supplies the desired benefit.

Question 5

What does the augmented product consist of?

Answer 5

The actual product plus other supporting features such as warranty, credit, delivery, installation and repair service after the sale.

Question 6

What are the four different classifications of the consumer product?

Answer 6

Convenience
Shopping
Speciality
Unsought

Question 7

What are industrial products?

Answer 7

These are products that are purchased for further processing or for use in conducting a business

Question 8

What are some examples of industrial products?

Answer 8

Materials and parts
Capital items
Supplies and services

Question 9

What are the steps in product and service decisions?

Answer 9

Product attributes
Branding
Packaging
Labelling
Product support services

Question 10

What is a brand?

Answer 10

A brand is a name, term, sign, symbol or design that identifies the maker of the seller of a product/service.

Question 11

What is packaging?

Answer 11

Involves designing and producing the container or wrapper for the product.

Question 12

What is labelling?

Answer 12

Identifies the product or brand, supports the brand’s positioning and adds personality to the brand.

Question 13

What are the different sections of the BCG growth-market share matrix?

Answer 13

Stars
Question Marks
Cash Cows
Dogs

Question 14

What are stars?

Answer 14

SBUs whose products have a dominant market share in a high-growth market

Question 15

What are question marks?

Answer 15

SBUs whose products have a low market share in a high-growth market.

Question 16

What are cash cows?

Answer 16

SBUs whose products have a dominant market share in a low-growth market.

Question 17

What are dogs?

Answer 17

SBUs nobody wants

Question 18

What is a new product?

Answer 18

A new product is one that is entirely new or changed significantly

Question 19

How long is a new product called new for?

Answer 19

6 months

Question 20

What is the new product development based on?

Answer 20

Categories of research and development expenditures.

Question 21

What is new and improved products in response to?

Answer 21

Changing customers needs, technology and competition.

Question 22

What are the different steps of new product development?

Answer 22

Idea generation
Product concept development
Marketing strategy development
Business analysis
Technical development
Test marketing
Commercialisation

Question 23

What is involved in the product concept stage of NPD?

Answer 23

Expanding new ideas into more complete product concepts/ describe features that the product should have/ benefits those features will provide and evaluate chance for success.

Question 24

What is involved in the marketing strategy development stage of NPD?

Answer 24

Developing a market strategy that can be used to introduce the product to the marketplace.

Question 25

What is involved in the business analysis stage of NPD?

Answer 25

Assess how a new product will fit into a firms total product mix/ evaluate whether the product can be profitable contribution for an organisations product mix.

Question 26

What is involved in the technical development stage of NPD?

Answer 26

Work with engineers to refine the design and production process.

Question 27

What is involved in the test marketing stage of NPD?

Answer 27

Trying out complete marketing plan in a small geographic area that is similar to a large target market.

Question 28

What is involved in the commercialisation stage of NPD?

Answer 28

Launching the product/ Full scale production/ distribution/ advertising/ sales promotion

Question 29

What are the four stages of PLC?

Answer 29

Introduction stage Growth stage Maturity stage Decline stage

Question 30

What are the objectives of packaging?

Answer 30

Identify the brand Convey prescriptive and persuasive info Facilitate the product transportation and protection Assist at home storage Aid product consumption

Question 31

What are the factors contributing to the emphasis on packaging?

Answer 31

Self-service Consumer affluence Company/brand image Innovation/opportunity

Question 32

What are the risks and returns in innovation?

Answer 32

NPD is very expensive NPD takes time Unexpected delays in development Poor success record due to - lack of research/ technical issues/ timing errors

Question 33

What are the causes of new product failure?

Answer 33

Marketing Financial support Timing Technical issues Organisational issues Environmental failure

Question 34

What are the successes of NPD?

Answer 34

Excellent knowledge of consumers/markets/competitors Unique superior product Well-defined product concept prior to development Market needs Technological + marketing synergy Quality of execution