Exam 8: Developing and Managing Products and Services

How can service providers use a differentiated offer, delivery, and image to avoid competing solely on price?

Give an example of product mix depth in the soft drink industry.

Berkowitz Piano Company can expand its product line in one of two common ways. Which of the following is one of those ways?

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. Herb 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. Herb 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." The 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. -What type of consumer products does Marks manufacture? Explain.

How might competitors be a good external idea source?

What are two major sources of new-product ideas?

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

GreenTree Lawn and Garden Products is engaged in a review of the sales, costs, and profit projections for some new products to find out whether they satisfy the company's objectives. This activity is called business product development.

A service is anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

In recent years, marketers are concerned about packaging that minimizes environmental, social and economic impacts. They are developing ________ packaging.

A ________ is a detailed description, drawing, or prototype of that idea that can be shown to potential customers.

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. Herb 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. Herb 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." The 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. -Is line filling evident in this scenario? Explain.

A ________ is defined as anything that can be offered to a market for attention, acquisition, use, or consumption that might satisfy a want or need.

How might measuring service quality be more difficult than measuring product quality?

The business analysis stage represents the first large jump in financial investment in the new-product development process.

Service productivity can be managed by increasing the quantity of service and giving up some quality.

________ is the product life cycle period when sales fall off and profits drop.

The purpose of idea generation is to create a ________ of ideas. The purpose of succeeding stages is to ________ that number.

Introducing a new product into the market is called ________.

Diffusion of innovations theory refers to a theory that divides members of a social group into segments according to how likely they are to adopt new ideas.