Exam 12: Setting Product Strategy

In your position as a marketing manager for a small industrial company,you have been asked by the president to help differentiate the company's product from its competitors.In reviewing your marketing management notes,you note that the text stated that physical products could be differentiated in nine ways.These nine areas comprise the "meat" of the memo you are writing to the president of your firm.What are the nine ways that physical products can be differentiated?

Price-setting logic must be modified when the product is part of a product mix.

________ refers to training the customer's employees to use the vendor's equipment properly and efficiently.

You have been asked to prepare a product-line analysis for your company's stable of products.Why is it important for product-line mangers to do a product-line analysis?

________ refers to data,information systems,and advice services that the seller offers to their buyers.

The potential disadvantages of ________ are the risks and lack of control from becoming aligned with another brand in the consumers mind.Consumer expectations about the level of involvement and commitment are likely to be high,so unsatisfactory performance could be very negative for the brands involved.

________ is the ability of a company to prepare on a mass basis individually designed products,services,programs,and communications.

In the rapidly changing market of today's world,product lines must be continuously updated or modernized.

________ is the level at which the product's primary characteristics operate.

How a consumer shops for organic foods and how they use and dispose of the product is part of the consumers' _________ that is important for marketers to consider.

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

Carlos always buys bread and milk when he goes grocery shopping.In this case,bread and milk are examples o f impulse goods.

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?

________ describes the service program for helping customers keep purchased products in good working order.

As the marketing manager for a product often referred to as a "commodity," you know that incremental sales and profits lies not in physical differentiation but in "service" differentiation.As you compose a memo to your boss regarding the concept of "service" differentiation,you note the six areas where service differentiation can make a difference.List these six areas for service differentiation.

Factors that influence product-line length do NOT include company objectives or management aspirations.

A new product is advertised on the "infomercials" as being "the best cleaner money can buy" and "if not completely satisfied,return the product for a full refund,including shipping." The strategy of using a strong guarantee in this instance is sound because ________.

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

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

As you contemplate the introduction of your company's newest services,you think that the offering of a service guarantee would be a "marketing coup" and completely surprise your competition.You remember that your marketing management text stated that guarantees are most effective in two situations.What are these two situations?