Marketing Exam Chapters 8-10 Flashcards

Questions and Answers

What are the elements of product planning for goods and services?

Packaging (correct)

Branding (correct)

Warranty (correct)

Product idea (correct)

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:

Experienced, used, or consumed; intangible; customers can't keep services. Signup and view all the answers

Product assortment ____

Set of product lines and individual products that a firm sells. Signup and view all the answers

Product line ____

Set of individual products closely related. Signup and view all the answers

Branding's main goal is ____

To identify a product. Signup and view all the answers

What are the characteristics of a good brand name?

Short and simple; easy to spell and read; easy to recognize and remember. Signup and view all the answers

What does the Lanham Act do?

Spells out kinds of marks that can be protected and the method of protecting them. Signup and view all the answers

What is a family brand?

Same brand name for several products. Signup and view all the answers

Packaging involves ____

Promoting, protecting, and enhancing the product. Signup and view all the answers

What does a warranty explain?

What seller promises about its product. Signup and view all the answers

What is the Magnuson-Moss Act?

Producers must provide a clearly written warranty if they choose to offer any warranty. Signup and view all the answers

What are consumer product classes?

Convenience products, shopping products, specialty products, unsought products. Signup and view all the answers

What are the business product classes?

Installations, accessory equipment, raw materials, component parts and materials, MRO supplies, professional services. Signup and view all the answers

What is the product life cycle?

Describes stages a new product idea goes through from beginning to end. Signup and view all the answers

What are the stages of the product life cycle?

Market introduction, market growth, market maturity, sales decline. Signup and view all the answers

Sales decline stage occurs when new products replace old products.

True Signup and view all the answers

What characteristics allow new ideas to move quickly through early stages of the life cycle?

Greater comparative advantage, easy to communicate, easy to use. Signup and view all the answers

How long can a product be considered a 'new product' according to the FTC?

6 months, unless something functionally significant or of substantial respect is done. Signup and view all the answers

What is a new product?

A product that is new in any way for the company concerned. Signup and view all the answers

What are the steps in the Development Process?

(1) Idea generation, (2) Screening, (3) Idea Evaluation, (4) Development, (5) Commercialization. Signup and view all the answers

Most companies experience losses during the market introduction stage.

True Signup and view all the answers

What factors affect product quality measurement?

Customer satisfaction. Signup and view all the answers

What is a brand name?

Word, letter, or group of words or letters used as a trademark. Signup and view all the answers

What is a service mark?

Same as trademark except it refers to a service offering. Signup and view all the answers

What is a trademark?

Words, symbols, or marks that are legally registered for use by a single company. Signup and view all the answers

What is a manufacturer's brand?

Brands created by the producer. Signup and view all the answers

What is a private/dealer brand?

Brands created by intermediaries. Signup and view all the answers

What is a generic brand?

Products with no brand other than identification of contents. Signup and view all the answers

Why do we have packaging?

To meet customer needs better and enhance products. Signup and view all the answers

Why do we have warranties?

To ensure customers that their purchases are backed by guarantees. Signup and view all the answers

How does the product life cycle impact marketing decisions?

Determines customer perceptions and drives marketing strategies. Signup and view all the answers

Why are new products essential?

To keep markets fresh and continuously attract customers. Signup and view all the answers

What is the developmental process?

A cycle of new products that allows companies to avoid expensive failures. Signup and view all the answers

What does TQM stand for?

Total Quality Management. Signup and view all the answers

What is ROI throughout the developmental process?

(1) Idea generation: no ROI, (2) Screening stage: roughly estimate ROI, (3) Idea evaluation: go off rough ROI. Signup and view all the answers

How does TQM impact product management?

Focuses on delivering quality through the entire customer experience. Signup and view all the answers

What is the impact of place?

Product success relies on availability at desired locations. Signup and view all the answers

What is a distribution channel?

Any series of firms participating in product flow from producer to consumer. Signup and view all the answers

What are the different types of distribution channels?

Corporate, administered, contractual, traditional. Signup and view all the answers

What are the advantages and disadvantages of direct vs. indirect distribution?

Direct: maintain control but high investment; Indirect: less control but can forecast demand. Signup and view all the answers

Why use intermediaries?

They reduce need for working capital and better anticipate customer needs. Signup and view all the answers

What services provided by intermediaries are related to discrepancies?

Anticipate customer needs, make channels efficient. Signup and view all the answers

What is channel conflict?

Disagreements within channel relationships. Signup and view all the answers

What is the advantage of having a channel captain?

Guides channel relationships and directs activities. Signup and view all the answers

What is integration and why is it important?

Integration aligns distribution strategies for efficiency. Signup and view all the answers

What does the 80-20 rule imply?

80% of products are bought by 20% of customers. Signup and view all the answers

What is intensive distribution?

Selling through all suitable wholesalers/retailers. Signup and view all the answers

What is selective distribution?

Selling through intermediaries who will give special attention. Signup and view all the answers

What is exclusive distribution?

Selling through only one intermediary in a geographical area. Signup and view all the answers

What are global/international options based on cost, control, and risk?

Exporting, Licensing, Management contracting, Joint Venture, Direct Investment. Signup and view all the answers

What is discrepancy of quantity?

Difference between quantity produced and quantity final users want. Signup and view all the answers

What is discrepancy of assortment?

Difference between lines a producer makes and what final consumers want. Signup and view all the answers

What stage of the product life cycle involves informational promotion but low awareness?

Market introduction. Signup and view all the answers

What is the primary purpose of branding?

To identify the product. Signup and view all the answers

How should managers assess products through the eyes of the consumer?

Focus on total satisfaction and benefits for users. Signup and view all the answers

Characteristics of a good brand name include being trendy and fashionable.

False Signup and view all the answers

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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Description

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.