Exam 13: Setting Product Strategy

________ found a highly creative way to address the problem of proliferating plastic bottles with its "Waste<Less" line and helped farmers grow cotton with less water for its "Water<Less" line.

Marriott Corporation now contains hotels and motels from the "budget" end of the consumer spectrum to the "premium" end with their JD Marriott flagship locations. This is an example of a firm that successfully performed a(n) ________ to reach more consumers and ventures that are more profitable.

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.

Distinguish between controllable returns and uncontrollable returns.

Guarantees are most effective when the product is well known and/or similar in performance to other brands in the market.

The customer-value hierarchy consists of the basic product, core benefit, expected product, augmented product, and the consumption system.

Some service firms often engage in ________, consisting of a fixed fee plus a variable usage fee.

Explain the concepts of product-mix width, length, depth, and consistency.

What goods are similar in quality but different enough in price to justify shopping comparisons?

As a selling point, durability commands a particularly high pricing premium, especially for products that are subject to rapid technological obsolescence, as are personal computers and video cameras.

Your research shows that over 53 percent of all purchases are made on impulse. As you sit down with your packaging design team, you tell them that the package must communicate many of the sales tasks. List the sales tasks that packaging must now incorporate due to the increase in self-service sales.

The five product levels constitute a ________. At each level more customer value is added.

What occurs when any company lengthens its product line beyond its current range?

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

A guarantee's greatest contribution to a product's success is that it decreases the buyer's perceived risk in the purchase of the product.

The ________ of the product mix refers to how closely related the various product lines are in end use, production requirements, distribution channels, or some other way.

Using the ________ level of the product hierarchy to market its soups, Campbell Soups feature the company name first, then the soup variety on their packaging.

Product-line analysis provides information for two key decision areas: product-line length and ________.

Marketing planning begins with formulating an offering to meet target customers' needs or wants.