Exam 10: Product Decisions

James Hardie began selling fiber cement siding products in the United States in 1989 to leading builders,lumberyards,and home improvement centers.Even though ads guaranteed the product would not rot or crack for 50 years,many builders hated the product.It was heavy to install,and it showed every flaw in a bad framing job.In 1997,Hardie decided to run ads in traditional lifestyle magazines and emphasize the emotional appeal of houses made with strong,weather-resistant materials.Soon consumers began asking their builders or remodelers to use the product.Trade ads were used to explain how builders could take advantage of the interest created by the ads in lifestyle magazines.By 2000,the Hardieplank was the number one brand siding in North America.James Hardie is now the third most recognized brand of building material in the world. -Refer to Hardie Siding Products.Hardieplank siding is an example of a product:

Inez believes makeup is the most important part of her wardrobe.She spends considerable time comparing the prices,skin tones,and color options available at various cosmetics counters in department stores.For Inez,makeup is a convenience product.

All sales have an implied warranty under the Uniform Commercial Code.

Evan Zimmermann loves watches.He collects vintage Rolex sport models made between 1950 and 1960.He paid $1,500 for his first watch in 2000.Now,the watch is worth $15,000.For Evan,the vintage watches are an example of a(n)_____ product.

Most people recognize Crayola as a brand of crayon,but Crayola also markets paints,chalk,pencils,markers,toys,coloring books,clothing,and even software.All these products are part of Crayola's:

Branding has three main purposes: product identification,repeat sales,and new-product sales.

Firms increase the depth of their product lines for all of the following reasons EXCEPT:

One of the leading manufacturers of choir robes has added different types of trim and fabric it uses in making the robes.The company has not changed its prices.This is a(n)_____ modification.

A _____ is a name,term,symbol,design,or combination thereof that identifies a seller's products and differentiates them from competitors' products.

A go-cart manufacturer recently added shock absorbers to make the ride in its go-carts smoother.It has not changed its prices.This is a(n)_____ modification.

When consumers think of Nestlé,they probably think of chocolate.Historically,though,Nestlé's confectionary business is its weakest area.Based in Switzerland,it is the world's Nestlé largest food company,with a brand arsenal of Nescafe,Jenny Craig,Perrier,Purina,and PowerBar,just to name a few of its 30 product lines.Nestlé is hoping to become the "world's leading health,nutrition,and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart,bone,gut,and other health.Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat.Part of this new focus includes streamlining their product mix by selling underperforming items or lines that do not fit its new direction.Critics claim this new focus could hurt the company's existing brands if the new products fail.Additionally,it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company. -Refer to Nestlé.What adjustment to its product mix is Nestlé doing when it removes underperforming items from the market?

Adding additional products to an existing product line in order to compete more broadly in the industry is referred to as:

The two types of package labeling in common usage today are:

The convenience product marketing strategy includes:

Smith-Binney's Crayola makes various products,all targeted toward elementary school children.Drawing,painting,and supply items are sold at convenience stores,toy stores,and grocery stores.Clothing is sold in department stores.Crayola might arrange its product items in the following way: Drawing/Painting Supplies Textiles Crayons, regular wax Crayon sharpeners Boys' clothing Crayons, fluorescent Paint brushes Girls' clothing Markers, regular Scissors Bed and bath linens Markers, washable Glue Watercolor paints Storage cases Acrylic paints cjalk What is the product mix width for Crayola? What is its product line depth?

Compare and contrast an express warranty and an implied warranty.

A number of yogurts are marketed under the Dannon brand,including Dannon All Natural,Dannon Fruit on the Bottom,Dannon Light & Fit,DanActive,and Dan-o-nino.The large variety of yogurts under the Dannon brand in an example of a:

Most people recognize Butterball as a brand of turkey,but Butterball brand is also found on fresh turkey breast cuts,turkey sausages,ground turkey,lunchmeat cold cuts,fresh marinated bone-in,boneless,and whole chicken,frozen chicken products,and Butterball stuffing and gravy mixes.Butterball uses:

Procter & Gamble's Olay line of skin products is very popular and profitable.P&G has launched an Olay body wash that is supposed to fight wrinkles.This is an example of a repositioning.

Which type of private label brand carries no evidence of a retailer's affiliation,is manufactured by a third party,and is sold exclusively at the retailer?