Exam 13: Setting Product Strategy

During a meeting, you were asked by the VP 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 pricing strategies.

The sellers of ________ goods carry a wide assortment to satisfy individual tastes. They must have well-trained salespeople to inform and advise customers.

Pure bundling occurs when a firm offers goods both individually and in bundles.

A product is anything that can be offered to a market to satisfy a want or need.

To be branded, physical products need not be differentiated.

In increasingly fast-paced markets, price and technology are not enough. ________ is the factor that will often give a company its competitive edge and is defined as the totality of features that affect how a product looks, feels, and functions in terms of customer requirements.

To be branded, products must be differentiated. List the possible ways that physical products can be differentiated.

Differentiating on ________ is important for companies with complex products and becomes an especially good selling point when targeting technology novices.

The four product-mix dimensions (length, width, depth, consistency) permit the company to expand its business.

Companies may wish to implement a(n) ________ to achieve more growth, to realize higher margins, or simply to position themselves as full-line manufacturers.

The product hierarchy stretches from basic needs to particular items that satisfy those needs.

How a consumer shops for organic foods and how he or she uses and disposes of the product is part of the consumers' ________ that is important for marketers to consider.

Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

A ________ is the set of all products and items a particular seller offers for sale.

________ branding is a special case of co-branding involving creating brand equity for materials, components, or parts that are necessarily contained within other branded products.

The homogeneity of natural materials limits the amount of demand-creation activity that producers undertake.

When a physical product cannot easily be differentiated, the key to competitive success may lie in adding valued services and improving quality. Identify the six main service differentiators.

It was sunny when Jenny went to class, but by the time class was over it was raining heavily, so Jenny stopped by the student store to buy an umbrella before she walked back to her dorm. In this case, the umbrella is an example of a(n) ________ good.

Companies in the "middle market" should never attempt to stretch their line in both directions.

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?