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Questions and Answers
What is the meaning of Total Quality Management (TQM)?
What is the meaning of Total Quality Management (TQM)?
TQM is an approach where all the company's people are involved in constantly improving the quality of the products, services, and business processes.
What is the positive differential effect that knowing a brand name has on customer response to a product or service called?
What is the positive differential effect that knowing a brand name has on customer response to a product or service called?
Brand equity
What is the process of estimating the total financial value of a brand called?
What is the process of estimating the total financial value of a brand called?
Brand valuation
Which of the following are examples of product line decisions?
Which of the following are examples of product line decisions?
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Which of the following are examples of brand sponsorship?
Which of the following are examples of brand sponsorship?
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Which of the following is an example of a brand development strategy?
Which of the following is an example of a brand development strategy?
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Which of the following are ways of obtaining new products?
Which of the following are ways of obtaining new products?
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Which of the following are sources of new product ideas?
Which of the following are sources of new product ideas?
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What is the stage of the product life cycle where the product is first launched and made available for purchase?
What is the stage of the product life cycle where the product is first launched and made available for purchase?
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What is the stage of the product life cycle where sales growth starts climbing quickly, attracted by opportunities for profit, and new competitors enter the market?
What is the stage of the product life cycle where sales growth starts climbing quickly, attracted by opportunities for profit, and new competitors enter the market?
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What is the stage of the product life cycle where sales growth slows down, reaching a steady state, and profits normally last longer than previous stages?
What is the stage of the product life cycle where sales growth slows down, reaching a steady state, and profits normally last longer than previous stages?
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What is the stage of the product life cycle where sales decline and profits decline for various reasons such as technological advances, shifts in consumer taste, and increased competition?
What is the stage of the product life cycle where sales decline and profits decline for various reasons such as technological advances, shifts in consumer taste, and increased competition?
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What is the amount of money charged for a product or service on the sum of the values that the customers exchange for the benefit of having or using the product or service called?
What is the amount of money charged for a product or service on the sum of the values that the customers exchange for the benefit of having or using the product or service called?
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Which of the following are examples of factors to consider while setting prices?
Which of the following are examples of factors to consider while setting prices?
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Which of the following are examples of methods/ways of setting prices?
Which of the following are examples of methods/ways of setting prices?
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Which of the following are examples of price-adjustment strategies?
Which of the following are examples of price-adjustment strategies?
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Which of the following are examples of new product pricing strategies?
Which of the following are examples of new product pricing strategies?
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Which of the following are examples of product mix pricing strategies?
Which of the following are examples of product mix pricing strategies?
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What is the practice of setting a high price for a new product when the product's quality or image must support the high price called?
What is the practice of setting a high price for a new product when the product's quality or image must support the high price called?
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What is the practice of setting a low price for the new products in order to penetrate the market quickly and deeply called?
What is the practice of setting a low price for the new products in order to penetrate the market quickly and deeply called?
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What is the practice of setting price steps between different products in a product line based on cost difference or competitor prices called?
What is the practice of setting price steps between different products in a product line based on cost difference or competitor prices called?
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What is the practice of setting prices for accessory products along with the main product called?
What is the practice of setting prices for accessory products along with the main product called?
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What is the practice of setting prices for products that must be used along with the main product called?
What is the practice of setting prices for products that must be used along with the main product called?
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What is the practice of setting prices for by-products that are produced during the manufacturing process of the main product called?
What is the practice of setting prices for by-products that are produced during the manufacturing process of the main product called?
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What is the practice of combining several of the products and offering them as a bundle at a reduced price called?
What is the practice of combining several of the products and offering them as a bundle at a reduced price called?
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What is the practice of selling a product or service at two or more prices, where the difference in prices is not based on difference in costs called?
What is the practice of selling a product or service at two or more prices, where the difference in prices is not based on difference in costs called?
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What is the pricing approach that considers the psychology of prices and not simply the economics called?
What is the pricing approach that considers the psychology of prices and not simply the economics called?
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What is the practice of temporarily setting the prices of a product below the cost, sometimes even below the cost, in order to create short-run sales increase called?
What is the practice of temporarily setting the prices of a product below the cost, sometimes even below the cost, in order to create short-run sales increase called?
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What is the practice of setting prices for certain parts of the country or world called?
What is the practice of setting prices for certain parts of the country or world called?
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What is the practice of adjusting prices continually in order to meet the characteristics or needs of individual customers or situations called?
What is the practice of adjusting prices continually in order to meet the characteristics or needs of individual customers or situations called?
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What is the practice by companies that market their products internationally to decide what prices to charge for different countries called?
What is the practice by companies that market their products internationally to decide what prices to charge for different countries called?
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What is the practice of adjusting prices to reward customers with discounts or allowances called?
What is the practice of adjusting prices to reward customers with discounts or allowances called?
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Study Notes
CIA-2 Revision: Ch-8 Product, Services & Branding Strategy
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Product/Service Decisions: Individual product decisions include quality, style/design, and product line decisions. Product lines group closely related products. Product mix describes the total number of products offered.
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Branding Strategy: Brand equity is the positive impact a brand name creates on customer response. Positive associations with a brand name influence product or service appeal.
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Brand Valuation: Estimating a brand's financial value.
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Advantages of Strong Brand Equity: High consumer awareness, loyalty, ease of line extensions, enhanced bargaining power, and defense against competition.
Major Brand Strategy Decisions
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Brand Positioning: Consider how a brand should be perceived and how it differentiates from competitors.
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Brand Name Selection: Should be memorable, suggest something about the product benefit, be easily pronounceable, distinctive, extendable, and capable of registration.
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Brand Sponsorship: This covers manufacturer's and private brands.
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Brand Development: Explores various brand strategies, including line extensions, brand extensions, multibrands, and new brands.
Chapter 9: New Product Development Strategy
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Ways of Obtaining New Products: Methods include acquisition (buying a company/patent) or licensing.
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New Product Development Process: Stages include idea generation, idea screening, concept development/testing, marketing strategy development, business analysis, product development, test marketing, and commercialization.
New Product Development Process (continued)
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Idea Generation: Internal (employees) and external (customers, competitors) sources.
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Idea Screening: Filtering good ideas from poor ones.
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Concept Development/Testing: Detailing product concept, assessing consumer appeal.
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Marketing Strategy Development: Defining target market, positioning, and marketing mix.
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Business Analysis: Assessing product's sales potential, costs, and profitability.
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Product Development: Turning the product idea into a tangible product.
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Test Marketing: Testing the product with a specific target market to evaluate reactions.
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Commercialization: Launching the new product.
Chapter 10: Pricing Products
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Pricing: The amount of money charged for a product or service. Pricing factors include costs, competitor prices, customer perceptions, and market conditions.
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Methods of Pricing: Different ways to determine price—cost-plus pricing, value-based pricing, good-value pricing, and value-added pricing.
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Experience Curve/Learning Curve: A reduction in per-unit production cost due to accumulated experience.
Chapter 11: Pricing Strategies
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New Product Pricing Strategies: Market skimming (high initial price for a premium product) versus market penetration (low initial price to quickly reach a large market).
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Product Mix Pricing Strategies: Optional product pricing, captive product pricing, by-product pricing, and product bundle pricing.
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