Exam 12: Setting Product Strategy

A product system is a group of diverse but related items that function in a compatible manner and includes the product mix and product assortment.

Products are often combined with other products (from other companies or from other divisions) and this is called

During a meeting, you were asked by the vice-president of marketing, to comment on the company's pricing strategy for its products. Recalling your marketing management course in college, your comments define the six situations involving product-mix pricing. List these six product-mix offerings.

The components of the market offering must be meshed so that they are ________ attractive.

In planning its market offering, the marketer needs to address five product levels. Which of these levels refers to the service or benefit the customer is really buying?

Companies normally develop product lines rather than a single product and introduce price steps.

When shopping for tires for your automobile, you notice that the manufacturer you have selected has tires for your car priced low-, average-, and high-based upon performance and features. This is an example of what type of product-mix pricing?

Sales of luxury goods such as perfumes, colognes, and after shaves depend heavily upon their initial response by the consumer. Packages can act as five-second commercials for the product. Which of the three levels of packaging is this "five-second commercials"?

________ refers to the training the customer's employees to use the vendor's equipment properly and efficiently.

Examples of products such as insurance, cemetery plots, and smoke detectors, are examples of ________ that are products that the consumer does not know about or does not normally think of buying.

In offering a product line, companies normally develop a ________ and modules that can be added to meet different customer requirements.

In the rapidly changing market of today's world, product lines must be continuously updated or modernized.

As you contemplate the introduction of your company's newest services-you think that the offering of a service guarantee would be a "marketing coup" and completely surprise your competition. You remember that your marketing management text stated that guarantees are most effective in two situations. What are these two situations?

A manufacturer of hiking boots looks at data that indicates that their sub-segment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm using a ________ to reach a new market.

Co-branding is when two or more well-known existing brands are combined into a joint product and/or marketed together in some fashion.

Companies that wish to enter the high end of the market can introduce products that cater to that market. This is an example of

Warranties are formal statements of expected product performance by the manufacturer.

A consumer products firm manufacturers and sells over 200 different sizes and varieties of jams and jellies. We can say that this manufacturer's product mix has a ________ of products in this category.

________ are similar in quality but different enough in price to justify shopping comparisons.

Guarantees are most effective in two situations. The first is when the company or products are not well known and the second is when the product's quality is ________ to competition.