Questions and Answers
What is product management?
the systematic and usually team-based approach to coordinating all aspects of a product's strategy development and execution
What is a product line?
a firm's total product offering designed to satisfy a single need or desire of target customers
What determines product line length?
the number of separate items within the same category
What does SKU stand for?
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What is a full-line product strategy?
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What is a limited-line product strategy?
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What is product line extension?
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What is an upward product line stretch?
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What is a downward product line stretch?
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What is a two-way product line stretch?
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What is filling-out product strategy?
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What is cannibalization in marketing?
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What constitutes the product mix?
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What is product mix width?
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What defines product quality?
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Who are internal customers?
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What is internal customer mindset?
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What is ISO 9000?
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What is Six Sigma?
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What is the Product Life Cycle (PLC)?
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What happens in the introduction stage of the Product Life Cycle?
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What is a product relaunch?
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What occurs in the growth stage of the Product Life Cycle?
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What characterizes the maturity stage of the Product Life Cycle?
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What is the decline stage of the Product Life Cycle?
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What defines a brand?
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What is a trademark?
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What is brand equity?
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What is brand meeting?
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What defines brand personality?
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What is brand anthropomorphism?
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Study Notes
Product Management and Strategy
- Product management is a systematic, team-based approach to coordinating all aspects of a product's strategy development and execution.
- A product line refers to a firm's total product offering designed to fulfill a specific need or desire of target customers.
- Product line length is determined by the number of distinct items within the same product category.
Product Line Strategies
- Stock Keeping Unit (SKU) is a unique identifier assigned to each distinct product, aiding in inventory and sales tracking.
- Full-line product strategy targets multiple customer segments, enhancing sales potential.
- Limited-line product strategy involves fewer product variations, signaling exclusivity or specialization.
Product Line Extension
- Product line extension is the strategy of expanding an existing product line by adding more brands or models.
- Upward product line stretch adds new items at the higher-priced end of the market, while downward product line stretch focuses on the lower-priced end.
- Two-way product line stretch simultaneously introduces new items at both ends of the market.
- Filling-out product strategy involves adding previously unavailable sizes or styles in a product category.
Market Dynamics
- Cannibalization occurs when the introduction of a new item in a product line results in a loss of sales for an existing brand.
Product Mix
- Product mix is the comprehensive set of all products a firm offers for sale.
- Product mix width refers to the number of different product lines produced by the firm.
Product Quality and Customer Relationships
- Product quality reflects the overall ability of a product to meet customer expectations.
- Internal customers are coworkers who interact, recognizing that all activities impact external customers.
- Internal customer mindset promotes an organizational culture where all members treat each other as valued customers.
Quality Standards and Improvement Systems
- ISO 9000 establishes criteria to regulate product quality, primarily in Europe.
- Six Sigma is a process aimed at reducing product defects to 3.4 per million or fewer.
Product Life Cycle (PLC)
- The Product Life Cycle consists of four stages: introduction, growth, maturity, and decline, reflecting a product's journey from launch to withdrawal from the market.
- The introduction stage experiences slow growth as a new product enters the market.
- Growth stage is characterized by rapid sales increase as consumers accept the product.
- Maturity stage is the longest period, where sales peak and profit margins narrow.
- Decline stage sees a decrease in sales as customer needs evolve.
Branding Concepts
- A brand is any unique element that identifies a firm's products, differentiating them from competitors.
- Trademark protects brand names, marks, or characters, granting exclusive legal rights.
- Brand equity represents the value of a brand to its organization.
- Brand meeting encompasses consumer beliefs and associations related to the brand.
- Brand personality captures the distinctive character and benefits of a product.
- Brand anthropomorphism involves attributing human characteristics to a brand, influencing consumer perception.
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Description
Test your knowledge of product strategy, branding, and product management concepts from Chapter 9. This quiz will help reinforce key definitions and terms important for understanding how products are developed and managed in the market.