Exam 9: Setting Product Strategy and Introducing New Offerings

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

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

In planning its market offering, the marketer must address the five product levels of the customer-value hierarchy. Describe the "customer-value hierarchy" and identify the five levels of product contained within.

Marketers have traditionally classified products on the basis of characteristics such as durability, tangibility, and use.

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?

When companies search for new ways to satisfy customers and distinguish their offering from others, they look at the ________ product, which encompasses all the possible augmentations and transformations of the product.

If the Ford GT is designed to accelerate to 50 miles per hour within 10 seconds, and every Ford GT coming off the assembly line does this, the model is said to have high ________.

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

Realizing that although household products is a huge category-taking up an entire supermarket aisle or more-it is an incredibly boring one, the founders of Method Products designed a sleek, uncluttered dish soap container that also carried functional advantages, such as ease of dispensing soap and cleaning. Method is competing in the crowded market for household products on the basis of superior ________.

After creating a product prototype, a company tests it within the firm to see how it performs in different applications. The company refines the prototype to correct the mistakes found in in-house testing. What should be the next step?

A manufacturer of hiking boots looks at data that indicate that their subsegment of the market called "serious hiker" is declining and is predicted to decline into the future. The firm decides to enter the "low-price" segment with its new items. This is an example of a firm's ________ to reach a new market.

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

Compare innovation through development of new-to-the-world products with the use of incremental innovation.

Jordan's firm enters new markets by tweaking products for new customers, uses variations on a core product to stay one step ahead of the market, and creates interim solutions for industry-wide products. In other words, it pursues ________.

Sellers must label their products. Labels serve many purposes beyond just "naming" the product. List the additional services provided by a product's label.

Some firms might delay the launch of their products until after the competitor has borne the cost of educating the market. Such an entry is called ________ entry.

Which of the following is a purpose of product mapping?

To the manufacturer, a well-designed product is easy to make and distribute; to the customer, it is pleasing to look at and easy to use.

Ingredient branding can take on a form called "self-branding" in which the company advertises its own branded ingredients.

In discussions with the packaging design team, you note that they do not have a firm design objective for the final package. In an internal memo to your boss, outline the objectives (both company and consumer orientated) that you wish to see implemented by the design team.