Exam 10: Product Concepts

_____ products are searched for extensively,and substitutes are not acceptable.These products may be quite expensive,and often distribution is limited.

A _____ is everything,both favorable and unfavorable,that a person receives in an exchange.It can be tangible,intangible,a service,an idea,or a combination of these things.

Adding additional products to an existing product line in order to compete more broadly in the industry is referred to as:

Which type of product modification changes a product's versatility,effectiveness,convenience,or safety?

The convenience product marketing strategy includes:

One of the leading manufacturers of choir robes has added different types of trim and fabric it uses in making the robes.The company has not changed its prices.This is a(n)_____ modification.

Smith-Binney's Crayola makes various products,all targeted toward elementary school children.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?

Procter & Gamble makes Gain laundry detergent for people who like a strong scent and Dreft for those who want a gentle detergent for their baby's clothes.It is using a(n)_____ strategy.

Products can be classified as either business/industrial or consumer products. Explain what distinguishes business products from consumer products and why it is important to understand this distinction.

Define cobranding and describe the three different types of cobranding.

Hardie Siding Products James Hardie began selling fiber cement siding products in the United States in 1989 to leading builders, lumberyards, and home improvement centers. Even though ads guaranteed the product would not rot or crack for 50 years, many builders hated the product. It was heavy to install, and it showed every flaw in a bad framing job. In 1997, Hardie decided to run ads in traditional lifestyle magazines and emphasize the emotional appeal of houses made with strong, weather-resistant materials. Soon consumers began asking their builders or remodelers to use the product. Trade ads were used to explain how builders could take advantage of the interest created by the ads in lifestyle magazines. By 2000, the Hardieplank was the number one brand siding in North America. James Hardie is now the third most recognized brand of building material in the world. -Refer to Hardie Siding Products.Hardieplank siding is best described as a(n)_____ product.

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.

A product may be defined as everything,both favorable and unfavorable,that a person receives in an exchange.

Nestle When consumers think of Nestle, they probably think of chocolate. Historically, though, Nestle's confectionary business is its weakest area. Based in Switzerland, it is the world's largest food company, with a brand arsenal of Nescafe, Jenny Craig, Perrier, Purina, and PowerBar, just to name a few of its 30 product lines. Nestle 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. Nestle wants consumers to see chocolate as a pharmaceutical product rather than just a treat. Part of this new focus includes streamlining their product mix by selling underperforming items or lines that do not fit its new direction. Critics claim 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 Nestle. What adjustment to its product mix is Nestle doing when it sells underperforming items?

An elementary school teacher purchased a ream of art paper,a box of crayons,and some modeling clay.The teacher intends to use these products in her classroom,so they would be classified as business products.

Which of the following is an example of a product modification?

Compare and contrast the three types of product modifications and give an example of how each could be implemented.

Which type of product modification is an aesthetic product change?

Which type of warranty is a written guarantee?

All sales have an implied warranty under the Uniform Commercial Code.