Exam 19: Product Concepts

Rolex watches are very expensive and can only be purchased in high-end jewelry stores located in large metropolitan areas.Most buyers will accept no substitutes.Rolex watches are an example of a shopping product.

Distinguish between manufacturer's brands and private brands.From the reseller's perspective,what are they key advantages of carrying each type of brand?

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.What adjustment to its product mix is Nestlé doing when it removes underperforming items from the market?

A style modification is a(n):

Most people recognize Crayola as a brand of crayon,but Crayola also markets paints,chalk,pencils,markers,toys,coloring books,clothing,and even software.All these products are part of Crayola's:

When a company uses different brand names for different products,it is using _____ branding.

Trademark protection and rights only lasts for five years.

Convenience products,though inexpensive,still require considerable shopping effort by buyers.

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

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 of siding in North America. James Hardie is now the third most recognized brand of building material in the world. -Refer to Hardie Siding Products.Since all of the siding products sold by Hardie are sold under the James Hardie brand name,it is clear that the company uses a _____ 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.

Explain the differences among the terms brand,brand name,brand mark,trademark,and service mark.

Labeling that is designed to help consumers make proper product selections and lower their cognitive dissonance after the purchase is referred to as:

Kleenex is a well-known brand name of facial tissue.People often refer to Kleenex as if it were the product name.The company that makes Kleenex may someday find its brand name becoming a(n):

The consumer product classification system is based on:

When a product name becomes generic:

The statement on a toothpaste box that brushing twice a day with the paste will remove 90 percent of all tartar from the user's teeth is an example of a(n):

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.Some of Nestlé's products include bottled water,candy,and coffee,which would be classified as what type of consumer products?

Procter & Gamble manufactures Tide laundry detergent,the best-selling brand in the United States.But is also offers Tide to Go,which is a stick product consumers can use to clean a spot on their clothing between washings,and small travel packets of Tide detergent.These other products are part of Tide's product line:

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.