Exam 8: Developing and Managing Products and Services

How might competitors be a good external idea source?

A company can stretch its product either upward or downward, but not both directions.

The third level of a product that product planners consider is a(n) ________ around the core benefit and actual product that offers additional consumer services and benefits. augmented product brand equity brand extension industrial product image

The second part of the marketing strategy statement outlines the product's planned price, distribution, and ________ for the first year. advertising promotion marketing budget positioning target market

________ are consumer products that the consumer either does not know about or knows about but does not normally think about buying.These products require a lot of advertising, personal selling, and other marketing efforts. Specialty products Line extensions Unsought products Shopping products Convenience products

Which theory suggests that new products sometimes fail because they are unable to cross the gaps between the different market segments of innovators, early adopters, early majority, and late majority? idea evaluation theory diffusion of innovation theory idea screening theory life cycle theory data processing theory

The major purpose of test marketing is to provide management with the information needed to make a final decision about ________. how to develop a market strategy which market to compete in whether to launch the new product how to compete in the market how long to compete in the market

A detailed version of a new idea stated in meaningful customer terms is called a ________. product idea product concept product image product proposal product movement

Give an example of the most basic level of product, the core benefit.

Why might ad expenditures be high for products in the introductory stage of the PLC?

According to theory discussed in this chapter, the sales of a typical product follow a(n) __________ curve. U-shaped S-shaped L-shaped I-shaped O-shaped

Cannibalization and customer confusion about product differentiation are two potential results if line filling is overdone.

The creation of a successful new product depends on a company's understanding of its ________ and its ability to deliver ________ to customers. competitors, distributors, and employees; new styles customers, brands, products; product images customers, competitors, and markets; superior value product, marketing mix, and marketing strategy; functional features product life cycle, legal responsibilities, and social responsibilities; innovations

Helene Curtis began to market shampoo for normal hair.In an attempt to increase profits and use excess market capacity, Helene Curtis then marketed shampoo for oily hair and colour-treated hair.This is an example of ________. line filling social marketing a shopping product an unsought product people marketing

One aspect of managing service differentiation is the company's service delivery.

A hickory rocking chair, handmade by an French woodcarver in northern Quebec from locally grown wood, is an example of a(n) ________. convenience product shopping product specialty product service augmented product

Give an example of an augmented product.

Scenario Herb Marks built his enterprise on the faithful patronage of four specialty shops and a large contract from Elmore Distributors.But after two years, the maker of novelty pens and pencils had to rethink his strategy when his two-year contract with Elmore ended. erb built a company reputation on the manufacturing and distribution of a variety of wooden writing utensils with customized engravings.Specialty shops loved to display the products in their fancy, lighted showcases, but such specialty shops alone were not profitable.Herb Marks established a brand name, known merely as Marks, and decided to expand on it. erb extended his writing utensil lines to include quills, felt-tip pens, and multiple-cartridge pens that write in different colors.He even added a line of various grades of personalized stationery and business cards.Perhaps Herb's biggest added touch, however, was the addition of two salespeople who would work to explain the diverse array of products offered by Marks, as well as nurture existing accounts. We make an excellent product," Herb Marks stated, "and we honour a good guarantee on everything we sell.But let's face it-we face hundreds of competitors! We need Marks representatives out there to help prospects understand what they should demand in something as simple as a writing tool." he Marks brand is now fast-becoming synonymous with top-notch customer service.Part of the purchase package brought personal visits from the Marks representative, before the purchase and long after. Explain Herb's market offering.

Blair Housewares wants to add new lines of products to its 46-store chain.Managers are correct in believing that the purpose of idea generation is to create a few ideas, and the purpose of succeeding stages is to increase that number.

Increasing profits will most likely occur at which stage of the PLC? product development introduction growth maturity decline