Exam 13: Setting Product Strategy

Buyers expect products to have high ________, which is the degree to which all produced units are identical and meet promised specifications.

A group of products within a product class that are closely related because they perform a similar function, are sold to the same customer groups, are marketed through the same outlets or channels, or fall within given price ranges is known as a ________.

Most products are established at one of four performance levels: low, average, high, or superior. For example, mountain bikes come in a variety of sizes and physical attributes. When a consumer purchases a mountain bike costing $1,000, he or she expects the bike to perform to specifications and to have a high ________, meeting the promised specifications.

The product-line length can be obtained by averaging the number of variants within the brand groups.

Many products can be differentiated in terms of their ________, which is its size, shape, or physical structure.

Explain the concept of line stretching and the three uses for it.

In the aftermath of a crippling recession, luxury for many has become more about style and substance, combining personal pleasure and self-expression.

Companies normally develop product lines rather than a single product and introduce price steps such as a low-, average-, and high-priced computer system.

When Mercedes successfully introduced its C-Class cars at $30,000 without injuring its ability to sell other Mercedes cars for $100,000, it was an example of a successful ________.

Product line analysis provides information for two key decision areas - product line length and product mix pricing.

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

Competition for luxury brands must be defined narrowly.

The main advantage of co-branding is that a product may be convincingly positioned by virtue of the ________ involved.

A(n) ________ is defined as a distinct unit within a brand or product line distinguishable by size, price, appearance, or some other attribute.

A manufacturer of hiking boots looks at data that indicate that their subsegment 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's ________ to reach a new market.

As the newest member of the marketing department, your immediate boss asks you to comment on the company's proposal to add two new shoes to the company's middle-of-the-road pricing and product-line strategies. The first pair will retail for $ 40 and has as its target market the "bargain" shopper. The second pair will retail for $200 and is targeted at the "sophisticated shopper." In relation to product-line strategy, what is the company trying to accomplish with these two new items?

Moving ________ carries risks. The new brand can cannibalize core brand sales and lower the core brand's quality image.

In planning its market offering, the marketer needs to address five product levels, each of which reduces customer value.

________ describes the product's look and feel to the buyer; it has an advantage of creating distinctiveness that is difficult to copy.

________ are major purchases and are usually bought directly from the producer with the typical sale preceded by long negotiation periods.