Exam 12: Setting Product Strategy

Outline three guidelines for correctly implementing a bundling strategy.

Most products can be offered with varying ________ that can supplement its basic function.

Firms should design the highest performance level possible for their products.

If line filling is overdone, it could result in ________ and customer confusion.

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

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

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

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, she/he expects the bike to perform to specifications and to have a high ________ meeting the promised specifications.

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

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

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

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

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

What is the significance of design for a company's products and services? What are the advantages of a good design?

Durable products normally require less personal selling and service and less seller guarantees than nondurable goods.

To be branded, physical products need not be differentiated.

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

Customer training and customer consulting are two areas for service differentiation that manufacturers can use with their products.

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 ________ to reach more consumers and ventures that are more profitable.

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