Exam 12: Setting Product Strategy

Various factors have contributed to the increased importance of packaging as a marketing tool. List and briefly describe these events.

After packaging is designed, it must be tested. Which of the following is conducted to ensure the script is legible?

A company can classify its products into four types that yield different gross margins, depending upon sales volume and promotional costs. In the case of personal computers, which of the following classifications would apply to items with lower sales volume and no promotion, such as faster CPUs?

Product-mix pricing includes a number of pricing strategies for the brand manager. List each of these strategies and briefly define each.

Marketing planning ends with the formulation of an offering to meet the target customers' needs and wants.

The potential disadvantages of co-branding are the risks and lack of control from becoming aligned with another brand in the consumer's mind. Consumer ________ about the level of involvement and commitment with co-brands are likely to be high, so unsatisfactory performance could have negative repercussions for the brands involved.

The vast array of goods consumers buy can be classified on the basis of shopping habits. We can distinguish among convenience, ________, specialty, and unsought goods.

In selling your product to an end-user, you say, "this product is guaranteed for life." However, this guarantee is not in writing because your firm does not wish to go on record making such a claim. A few months later, this same consumer, returns to your shop, says that the product has failed, and wishes a replacement. You claim that because the statement "this product is guaranteed for life" is not in writing that you do not owe the consumer a new product. Senior management interferes and states, "Warranties whether expressed or implied are ________."

A company with many products must ensure that each of its products possess a ________ with the consumer.

The main point in segmenting products into different classes is that companies should recognize that these items ________ in their potential for being priced higher or advertised more as ways to increase sales, margins, or both.