Marketing Chapter 9 Quiz

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.