Exam 10: Product Concepts

Which of the following is NOT an example of a product's tangible feature?

All of the following are examples of products EXCEPT:

When a product name becomes generic:

Which of the following statements about planned obsolescence is true?

Inez believes that makeup is the most important part of her wardrobe.She spends considerable time comparing the prices,skin tones,and color options available at various cosmetics counters in department stores.For Inez,makeup is a convenience product.

Discuss the benefits for organizations by organizing related items into product lines.

Statements on Kashi cereals and breakfast bars stating that they have no artificial colors,flavors,or preservatives would most likely be an example of _____ labeling.

Nestlé When consumers think of Nestlé,they probably think of chocolate.Historically,though,Nestlé's confectionary business is its weakest area.Based in Switzerland,it is the world's largest food company,with a brand arsenal of Nescafé,Jenny Craig,Perrier,Purina,and PowerBar,just to name a few of its 30 product lines.Nestlé is hoping to become the "world's leading health,nutrition,and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart,bone,gut,and other health.Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat.Part of this new focus includes streamlining the product mix by selling underperforming items or lines that do not fit its new direction.Critics claim that this new focus could hurt the company's existing brands if the new products fail.Additionally,it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company. -Refer to Nestlé.Nestlé's quest is to make some of its existing products more nutritious and provide a health benefit.This is an example of which type of product modification?

A warranty does not confirm the quality or performance of a good or service.

Advantages of this global branding strategy include greater identification of the product from market to market and ease of coordinating promotion from market to market.

Which type of product modification changes a product's dependability or durability?

Product mix width may be defined as:

Retailers love national brands because overhead is low and there are no marketing costs,and they bring higher profit margins than private brands.

Nestlé When consumers think of Nestlé,they probably think of chocolate.Historically,though,Nestlé's confectionary business is its weakest area.Based in Switzerland,it is the world's largest food company,with a brand arsenal of Nescafé,Jenny Craig,Perrier,Purina,and PowerBar,just to name a few of its 30 product lines.Nestlé is hoping to become the "world's leading health,nutrition,and wellness firm" by spending billions of dollars on research and development of functional foods--foods that have pharmaceutical-like capabilities to enhance energy and heart,bone,gut,and other health.Nestlé wants consumers to see chocolate as a pharmaceutical product rather than just a treat.Part of this new focus includes streamlining the product mix by selling underperforming items or lines that do not fit its new direction.Critics claim that this new focus could hurt the company's existing brands if the new products fail.Additionally,it may be an uphill battle convincing consumers that a company known for indulgence is now a wellness company. -Refer to Nestlé.One new product Nestlé intends to introduce includes fiber added to chocolate.The packages will include the fact that each chocolate bar contains 5 grams of fiber and the various health benefits of including more fiber in one's diet.Which form of labeling will this perform?

Binney & Smith's Crayola makes various products,all targeted toward elementary schoolchildren.Drawing,painting,and supply items are sold at convenience stores,toy stores,and grocery stores.Clothing is sold in department stores.Crayola might arrange its product items in the following way: What is the product mix width for Crayola? What is its product line depth?

Sebastian got a haircut this afternoon.His haircut cannot be called a product,however,because it is a service,not a tangible good.

The Crayola brand is currently placed on a wide variety of products,including crayons (standard and fluorescent colors packaged in a wide variety of box sizes),markers (regular and washable),paints (watercolor and acrylic),scissors,glue,and children's clothing.Using Crayola as an example,describe the concepts of product item,product line,and product mix.

Campbell's Most people recognize Campbell's as a brand of soup,but Campbell's also manufactures Pace Picante Sauce,Pepperidge Farms products,Prego Sauce,Swanson Broth,and V8 juice.Campbell's International division offers more than 20 brands of soups,sauces,beverages,and baked snacks in the Asia Pacific region,Greater Europe and Latin America.Products such as Arnott's biscuits and crackers and Bià Band soups are well known overseas.Campbell's products are sold in more than 120 countries. -Refer to Campbell's.If a marketer looks only at the canned soups produced by Campbell's and notes the brands and items only within that category,he or she is analyzing the _____ of the product line.

Heinz is a leading global food manufacturer.It manufactures and markets Farleys (baby food),Jack Daniel's sauces,and Weight Watcher's diet/slimming meals and supplements.The use of these brand names instead of the Heinz name is an example of a(n)_____ branding strategy.

Choice Homes,Inc. Choice Homes,Inc. ,based in Texas,built its reputation by building high-quality new homes,often at prices less than "used" ones.Choice Homes used mass purchasing power,innovative high-tech communications among employees to coordinate the building process,and other entrepreneurial strategies to hold costs down.Its homes are primarily targeted at first-time homeowners-to-be in an effort to get people out of apartments so they can experience the "American Dream" of home ownership for the same price as rent.Choice Homes later developed the "Choice Classic" brand name for higher-end homes targeted at wealthier dual-income couples.The Choice Classic name was designed to capitalize on the reputation of Choice Homes,especially for current Choice home owners who are ready to "move up" to a larger home.Recently,Choice Homes started a third line of homes called "Reflections," which are expensive,custom-designed homes located in exclusive,prestigious neighborhoods. -Refer to Choice Homes,Inc.Choice Homes is considering the development of a new category of small homes designed to replace low-income housing in the inner city.This strategy represents a: