Exam 8: Elements of Product Planning for Goods and Services

Use this information for question that refer to the Sunny Day Foods (SDF) Case. For six months, Kim Wu has been working for Sunny Day Foods (SDF), a fast-growing manufacturer of organic foods. After graduating college, she worked for four years as a sales rep for a nationally known food company. But, she jumped at the chance when SDF contacted her about becoming marketing manager for its breakfast foods division, which sells dry cereals and a pancake mix. Kim spent the first few months on the job trying to better understand SDF, its product line, and marketing strategy. She reviewed the company's past marketing research, commissioned new research, and talked to both consumers and retailers. Now, the CEO of the company wants her thoughts on what the company's marketing strategy should be for the next few years. Her research indicates that among cereal customers, there are at least five segments of customers who use SDF products. A. One segment, the loyalists, has a strong preference for one or two of the SDF cereals. These customers often go out of their way to visit a store with their favorite SDF cereal and buy only that product at the store. B. Another segment, the regulars, buys SDF cereals without much thought. For them it is just part of their routine and, if you ask them why they pick the cereal, they'd say it's just a habit. C. A third segment, the deal prone, sees SDF cereals as just another organic cereal. They view all organic cereals as pretty much the same and buy whichever brand seems to offer the best deal that week. D. A fourth segment, the politicos, consists of former buyers of SDF cereals. A few years ago the company took a strong stand in a presidential race-and these customers resented it. Now, they boycott all SDF foods because of that incident. E.A fifth segment, SDF who?, is made up of consumers who buy organic cereals but who don't have much awareness of particular organic brand names. In reviewing how SDF currently brands its products, Kim sees that it is using several different approaches. The Sunny Day Foods brand is used on most products the company sells. But a few years ago the company brought out an instant organic oatmeal with the Hot 'n Healthy name. SDF also makes cereal sold by a health food chain; the package for that chain uses the store's own name, Nature's Foods, as the brand name for the cereal. For which market segment would in-store demonstrations of SDF cereals be most effective?

______________ means potential customers insist on a firm's branded product and are willing to search for it.

Having a competitive price is likely to

The need-satisfying offering of a firm is its

______ are a boom-or-bust business.

Operating supplies typically:

Lisa Campos was interested in buying a coffee pot to use at college and a cassette player for her sister's birthday present. At the local discount store, she compared prices on coffee pots and chose the cheapest. She read the product information on each cassette player and finally chose one with stereo headphones and a rechargeable battery. For Lisa, the coffee pot was

Which of the following statements is not characteristic of a good?

Customers usually plan and shop for impulse products.

VoiceSys, Inc. produces voice-mail switchboard systems used in large office buildings, hotels, and other facilities. VoiceSys's products are selling so well that it has decided to buy new equipment that will increase its production capacity. This example best illustrates

______________ means potential customers won't buy a brand-unless its current image is changed.

A local copying service is buying a new kind of high speed color copier.

Consumer products that a customer buys on sight as unplanned purchases, may have bought the same way before, and wants "right now" are impulse products.

Brand equity is likely to be lower if customers insist on buying a product and retailers are eager to stock it.

Emergency products are purchased only when the need is great and urgent, and therefore price is usually not very important.

Nonrecognition of the brand name of a firm's product is likely to be LEAST important for:

If a consumer product is used regularly and usually bought frequently and routinely with little thought (although branding may be important), this product is:

Products that are meant for use in producing other products are ­__________ products.

Specialty products:

A large U.S. firm produces potato chips, shortening, dishwasher detergent, laundry detergent, shampoo, disposable diapers, and facial tissues. These are the firm's