Topic 1

Question 1

Product

Answer 1

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

Question 2

Service

Answer 2

An activity, benefit, or satisfaction offered for sale that is essentially
intangible and does not result in the ownership of anything.

Question 3

Products are a key element in the____

Answer 3

overall market offering

Question 4

Marketing mix planning

begins with____

Answer 4

building an offering that brings value to target customers

Question 5

Product planners need to think about products and services on____

Answer 5

on three levels

Question 6

What is the core value of the Three Levels of Product?

Answer 6

The most basic level is the core

customer value

Question 7

Three Levels of Product: What is the core customer value?

Answer 7

It addresses the question: What is the buyer really buying? When
designing products, marketers must first define the core, problem-solving benefits or
services that consumers seek.

Question 8

Three Levels of Product: What is the second level?

Answer 8

The actual product. Product planners must turn the core benefit into an actual
product. They need to develop product and service features, a design, a quality level,
a brand name, and packaging.

Question 9

Three Levels of Product: What is the third level?

Answer 9

An augmented product. product planners must build an augmented product around the core benefit
and actual product by offering additional consumer services and benefits.

Question 10

When developing products, marketers first must identify____

Answer 10

the core customer value that

consumers seek from the product.

Question 11

Products and services fall into two broad classes based on the types of consumers
who use them. What are these two broad classes?

Answer 11

consumer products and industrial products

Question 12

Consumer products

Answer 12

products and services bought by final consumers for

personal consumption

Question 13

Consumer products include____

Answer 13

convenience products, shopping products, specialty products, and unsought products

Question 14

Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of convenience products?

Answer 14

Frequent
purchase; little
planning, little
comparison
or shopping
effort; low
customer
involvement

Question 15

Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of shopping products?

Answer 15

Less frequent
purchase;
much
planning and
shopping
effort;
comparison
of brands on
price, quality,
and style

Question 16

Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of specialty products?

Answer 16

Strong brand
preference
and loyalty;
special
purchase
effort; little
comparison
of brands;
low price
sensitivity

Question 17

Type of Consumer Products & Marketing Considerations: What is the customer buying behavior of unsought products?

Answer 17

Little product
awareness or
knowledge
(or, if aware,
little or even
negative
interest)

Question 18

Type of Consumer Products & Marketing Considerations: What promotion style is necessary for convenience products?

Answer 18

Mass
promotion by
the producer

Question 19

Type of Consumer Products & Marketing Considerations: What promotion style is necessary for shopping products?

Answer 19

Advertising
and personal
selling by both
the producer
and resellers

Question 20

Type of Consumer Products & Marketing Considerations: What promotion style is necessary for specialty products?

Answer 20

More carefully
targeted
promotion
by both the
producer and
resellers

Question 21

Type of Consumer Products & Marketing Considerations: What promotion style is necessary for unsought products?

Answer 21

Aggressive
advertising
and personal
selling by the
producer and
resellers

Question 22

Consumer product

Answer 22

A product bought by final consumers for personal consumption.

Question 23

Convenience product

Answer 23

A consumer product that customers usually buy frequently,

immediately, and with minimal comparison and buying effort.

Question 24

Shopping product

Answer 24

A consumer product that the customer, in the process of selecting and purchasing, usually compares on such attributes as suitability, quality,
price, and style.

Question 25

Specialty product

Answer 25

A consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effort.

Question 26

Unsought product

Answer 26

A consumer product that the consumer either does not know | about or knows about but does not normally consider buying.

Question 27

Convenience products

Answer 27

are consumer products and services that customers usually buy frequently, immediately, and with minimal comparison and buying effort. Examples include laundry detergent, candy, magazines, and fast food. Convenience products are usually low priced, and marketers place them in many locations to make them readily available when customers need or want them.

Question 28

Shopping products

Answer 28

are less frequently purchased consumer products and services that customers compare carefully on suitability, quality, price, and style. When buying shopping products and services, consumers spend much time and effort in gathering information and making comparisons. Examples include furniture, clothing, major appliances, and hotel services. Shopping product marketers usually distribute their products through fewer outlets but provide deeper sales support to help customers in their comparison efforts.

Question 29

Specialty products

Answer 29

consumer products and services with unique characteristics or brand identifications for which a significant group of buyers is willing to make a special purchase effort. Examples include specific brands of cars, high-priced photography equipment, designer clothes, gourmet foods, and the services of medical or legal specialists. buyers are usually willing to travel great distances to buy one. Buyers normally do not compare specialty products. They invest only the time needed to reach dealers carrying the wanted products.

Question 30

Unsought products

Answer 30

consumer products that the consumer either does not know about or knows about but does not normally consider buying. Most major new innovations are unsought until the consumer becomes aware of them through advertising. Classic examples of known but unsought products and services are life insurance, preplanned funeral services, and blood donations to the Red Cross. By their very nature, unsought products require a lot of advertising, personal selling, and other marketing efforts.

Question 31

Industrial product

Answer 31

A product bought by individuals and organizations for further processing or for use in conducting a business.

Question 32

Industrial products are those products _____

Answer 32

purchased for further processing or for use in conducting a business. Thus, the distinction between a consumer product and an industrial product is based on the purpose for which the product is purchased. If a consumer buys a lawn mower for use around home, the lawn mower is a consumer product. If the same consumer buys the same lawn mower for use in a landscaping business, the lawn mower is an industrial product.

Question 33

What are the three groups of industrial products and services?

Answer 33

materials and parts, capital | items, and supplies and services

Question 34

Materials and parts

Answer 34

raw materials as well as manufactured materials and parts. Raw materials consist of farm products (wheat, cotton, livestock, fruits, vegetables) and natural products (fish, lumber, crude petroleum, iron ore)

Question 35

Manufactured materials and parts

Answer 35

consist of component materials (iron, yarn, cement, wires) and component parts (small motors, tires, castings). Most manufactured materials and parts are sold directly to industrial users.

Question 36

Capital items

Answer 36

industrial products that aid in the buyer’s production or operations, including installations and accessory equipment. Installations consist of major purchases such as buildings (factories, offices) and fixed equipment (generators, drill presses, large computer systems, elevators). Accessory equipment includes portable factory equipment and tools (hand tools, lift trucks) and office equipment

Question 37

supplies and services

Answer 37

Supplies include operating supplies (lubricants, coal, paper, pencils) and repair and maintenance items (paint, nails, brooms). Supplies are the convenience products of the industrial field because they are usually purchased with a minimum of effort or comparison.

Question 38

Organization | marketing

Answer 38

consists of activities undertaken to create, maintain, or change the attitudes and behavior of target consumers toward an organization.

Question 39

corporate image marketing

Answer 39

Business firms sponsor public relations or corporate image marketing campaigns to market themselves and polish their images.

Question 40

Person marketing

Answer 40

consists of activities undertaken to create, maintain, or change attitudes or behavior toward particular people. People ranging from presidents, entertainers, and sports figures to professionals such as doctors, lawyers, and architects use person marketing to build their reputations. And businesses, charities, and other organizations use well-known personalities to help sell their products or causes.

Question 41

Place marketing

Answer 41

involves activities undertaken to create, maintain, or change attitudes or behavior toward particular places. Cities, states, regions, and even entire nations compete to attract tourists, new residents, conventions, and company offices and factories.

Question 42

social marketing

Answer 42

The use of commercial marketing concepts and tools in programs designed to influence individuals’ behavior to improve their well-being and that of society

Question 43

Product quality

Answer 43

The characteristics of a product or service that bear on its ability to satisfy stated or implied customer needs

Question 44

Total quality management (TQM)

Answer 44

an approach in which all of the company’s people are involved in constantly improving the quality of products, services, and business processes