Questions and Answers
What are the elements of product planning for goods and services?
What is a product?
Need-satisfying offering of a firm.
Goods are:
Seen and touched - tangible; know what you get before you get the good; typically mass produced.
Services are:
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Product assortment ____
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Product line ____
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Branding's main goal is ____
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What are the characteristics of a good brand name?
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What does the Lanham Act do?
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What is a family brand?
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Packaging involves ____
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What does a warranty explain?
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What is the Magnuson-Moss Act?
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What are consumer product classes?
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What are the business product classes?
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What is the product life cycle?
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What are the stages of the product life cycle?
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Sales decline stage occurs when new products replace old products.
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What characteristics allow new ideas to move quickly through early stages of the life cycle?
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How long can a product be considered a 'new product' according to the FTC?
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What is a new product?
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What are the steps in the Development Process?
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Most companies experience losses during the market introduction stage.
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What factors affect product quality measurement?
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What is a brand name?
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What is a service mark?
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What is a trademark?
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What is a manufacturer's brand?
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What is a private/dealer brand?
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What is a generic brand?
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Why do we have packaging?
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Why do we have warranties?
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How does the product life cycle impact marketing decisions?
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Why are new products essential?
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What is the developmental process?
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What does TQM stand for?
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What is ROI throughout the developmental process?
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How does TQM impact product management?
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What is the impact of place?
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What is a distribution channel?
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What are the different types of distribution channels?
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What are the advantages and disadvantages of direct vs. indirect distribution?
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Why use intermediaries?
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What services provided by intermediaries are related to discrepancies?
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What is channel conflict?
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What is the advantage of having a channel captain?
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What is integration and why is it important?
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What does the 80-20 rule imply?
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What is intensive distribution?
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What is selective distribution?
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What is exclusive distribution?
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What are global/international options based on cost, control, and risk?
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What is discrepancy of quantity?
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What is discrepancy of assortment?
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What stage of the product life cycle involves informational promotion but low awareness?
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What is the primary purpose of branding?
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How should managers assess products through the eyes of the consumer?
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Characteristics of a good brand name include being trendy and fashionable.
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Study Notes
Product Planning Elements
- Includes product idea, branding, packaging, warranty, and classification of products.
Definition of Product
- A product is a need-satisfying offering from a firm.
Characteristics of Goods
- Tangible items that can be seen and touched; consumers generally know what to expect; typically mass-produced.
Characteristics of Services
- Intangible offerings experienced during use; cannot be owned and vary in quality; produced in the presence of the customer.
Product Assortment
- Refers to the collection of product lines and individual products offered by a firm.
Product Line
- A group of closely-related individual products.
Branding Goals
- The main goal of branding is to identify a product clearly in the market.
Good Brand Name Characteristics
- Should be short, simple, recognizable, easy to pronounce, suggestive of benefits, adaptable to packaging, and legally available.
Lanham Act
- Protects various types of marks and outlines methods for protection without enforcing mandatory registration.
Family Brand Definition
- Utilizes the same brand name across several related products, helping to unify brand identity.
Packaging Objectives
- Focuses on promoting, protecting, and enhancing the product.
Warranty Definition
- Clearly outlines the promises made by the seller regarding the product.
Magnuson-Moss Act
- Requires producers to have a clearly written warranty if they choose to offer one.
Consumer Product Classes
- Categories include convenience products, shopping products, specialty products, and unsought products.
Business Product Classes
- Categories include installations, accessory equipment, raw materials, component parts, MRO supplies, and professional services.
Product Life Cycle Stages
- Comprises market introduction, market growth, market maturity, and sales decline.
Market Introduction Characteristics
- Features low sales, negative profits, and minimal competition.
Market Growth Characteristics
- Profits peak, sales increase rapidly, and competitors enter the market due to opportunities.
Market Maturity Characteristics
- Sales peak, competition intensifies, and overall profitability declines due to rising costs.
Sales Decline Characteristics
- Sales and profits decrease as new products replace outdated ones, leading to intensified price competition.
New Product Characteristics
- Move quicker through early life cycle stages if they have comparative advantages, are easy to communicate, and align with customer values.
Definition of New Product (FTC Standard)
- A product is considered "new" for up to six months unless substantially changed.
New Product Development Process
- Consists of idea generation, screening (SWOT analysis), idea evaluation (concept testing), development, and commercialization.
Relative Quality Focus in Product Management
- Marketing managers often emphasize relative quality to differentiate their products from competitors.
Product Classification
- All goods are classified as tangible products.
Brand Recognition
- Achieved when consumers can recall and identify a brand from among other options in a store.
Green Packaging Trend
- Enhances products while promoting sustainability through recyclable or reduced materials.
Service Guarantees
- Offered instead of warranties for non-tangible services, providing assurance to customers.
Business Product Definition
- Products intended for use in the production of other goods.
Staple Product Definition
- Regularly used, frequently purchased items that require little thought.
Competitive Pricing Impact
- More crucial for homogeneous shopping products compared to specialty items.
Supplies Definition
- Expense items that do not become part of a final product.
Market Introduction Stage Losses
- Companies typically face losses during this initial stage of the product life cycle.
Market Maturity Promotions
- Characterized by rising promotion costs and price-cutting strategies from competitors.
Challenges in Mature Markets
- New entrants face competition from established firms with shrinking profit margins.
Consumer Learning Requirement
- Continuous, dynamically continuous, and discontinuous innovations vary in how much new behavior consumers must learn.
Definition of Planned Obsolescence
- Strategy that anticipates releasing new versions to replace older product lines regularly.
Concept Testing
- Involves consumer feedback to evaluate acceptance for new products.
Successful New-Product Development Factors
- Collaboration among R&D, operations, and marketing for feasibility assessment.
Product Managers in Large Companies
- Commonly oversee diverse product lines across multiple categories.
Employee Empowerment Concept
- Allowing staff autonomy to make decisions enhances customer satisfaction.
Measuring Product Quality
- Predominantly assessed through customer satisfaction levels.
Brand Name Characteristics
- Effective names are less about trends and more about clarity and pronounceability.
Decline of Industry Profits
- Profits typically start to decline during the market growth stage of the product life cycle.
Product Assessment Approach
- Managers should prioritize total consumer satisfaction and benefits.
Discrepancy of Quantity
- Represents the difference between production quantities and consumer demand.
Discrepancy of Assortment
- Indicates the gap between the product lines producers offer and the variety consumers desire.
Channel Conflict Types
- Includes vertical conflicts among different channel levels and horizontal conflicts among firms at the same level.
Channel Captain Benefits
- Guides channel relationships and helps to minimize conflicts.
Integration Benefits
- Strives for a unified distribution strategy to streamline processes.
80-20 Rule in Marketing
- Indicates that a small percentage of customers often accounts for the majority of purchases.
Intensive Distribution Strategy
- Ensures product availability across numerous outlets, often for convenience items.
Selective Distribution Strategy
- Engages a limited number of intermediaries for special attention to products.
Exclusive Distribution Strategy
- Restricts product sales to only one intermediary in a geographic area.
Global Market Strategies
- Various options weigh cost, control, and risk differently, including exporting, licensing, management contracting, joint ventures, and direct investment.
Channel Discrepancies in Supply
- Refers to the differences in quantity and assortment to address consumer needs effectively.
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Prepare for your marketing exam with these flashcards covering key concepts from chapters 8-10. Learn about product planning, definitions of goods and services, and the essential elements of product offerings. Ideal for students looking to reinforce their understanding of marketing fundamentals.