Exam 12: Setting Product Strategy

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

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.

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

Capital items are long-lasting goods that facilitate developing or managing the finished products.

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

Capital items are long-lasting goods that facilitate developing or managing the finished product. They include two groups: installations and ________.

Warranties are formal statements of expected product performance by the manufacturer.

Various factors have contributed to the increased importance of packaging as a marketing tool. List and briefly describe these events.

Price-setting logic must be modified when the product is part of a product mix. In that case, the firm searches for a set of prices that ________ profits on the total mix.

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

Delivery refers to how well the product or service is brought to the customer. It includes speed, ________, and care throughout the delivery process.

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

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

A pricing system in which there is a "fixed" fee and then a variable "usage" fee is called bundling.

The two kinds of supplies with respect to industrial goods classification are maintenance and repair items, and ________.

Products such as insurance, cemetery plots, and smoke detectors are examples of ________ that are products that the consumer does not know about or does not normally think of buying.

Because they are intangible, durable goods normally require more quality control, supplier credibility, and adaptability than either services or nondurable goods.

During a meeting, you were asked by the vice-president 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.

As the marketing manager for your firm, you have been approached by your key component manufacturer suggesting that your two firms "ingredient brand" a new item. What are some of the requirements for succeeding in ingredient branding?

McDonald's restaurants inside Wal-Marts and Starbucks inside Super Targets are examples of ________, whose main advantages are that the products can or may be convincingly positioned by virtue of the associated brands.