Product Management Concepts

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Questions and Answers

What does the term 'width' refer to in a product mix?

The diversity of individual products within a line

The number of product lines (correct)

The marketing strategy for each product

The range of prices within the product mix

Which of the following best describes 'product line stretching'?

Reducing the number of products in a product line

Introducing a completely new product line unrelated to existing lines

Expanding an existing product line to include lower or higher priced items (correct)

Adding more variations within a single product line

What defines 'consistency' in a product mix?

The average price of different product lines

The total number of products in the product mix

The number of alternatives within each product line

The degree of similarity among various product lines (correct)

Which type of consumer product requires the least amount of effort to purchase?

Convenience Products (C) Signup and view all the answers

In which consumer product classification would you find items that consumers are often unaware they need until a problem arises?

Unsought Products (A) Signup and view all the answers

What does the term 'product' encompass in marketing?

Anything that can be offered to a market for attention, acquisition, use or consumption. (C) Signup and view all the answers

Which component is NOT part of the 'Total Product Concept'?

Target customer (B) Signup and view all the answers

What is emphasized in the 'core product' of the Total Product Concept?

The key benefit the customer wants (D) Signup and view all the answers

Which of the following best defines a 'product mix'?

All product lines and items that a company offers for sale. (B) Signup and view all the answers

In brand management, what is a major role of packaging?

To protect the product and attract consumer interest. (D) Signup and view all the answers

What does the 'actual product' level include?

Brand name, design, features, and quality. (D) Signup and view all the answers

Which statement best describes an industrial product?

Products intended for use in an organization's operations. (A) Signup and view all the answers

What is a primary feature of the augmented product level?

Additional services like warranty and customer support. (A) Signup and view all the answers

What characterizes the buying behavior for convenience products?

Frequent purchases with little planning and low customer involvement (D) Signup and view all the answers

How does the price of specialty products typically compare to other types of consumer products?

It is higher compared to convenience and shopping products (C) Signup and view all the answers

Which distribution strategy is most appropriate for shopping products?

Selective distribution in fewer outlets (C) Signup and view all the answers

What is a common characteristic of unsought products?

They have little product awareness or knowledge (D) Signup and view all the answers

What distinguishes a brand?

A collection of symbols intended to differentiate a product (B) Signup and view all the answers

Which characteristic best describes equipment in business-to-business products?

Durable goods used in the production process (A) Signup and view all the answers

Which marketing strategy is commonly used for maintenance, repair, and operating (MRO) products?

Aggressive advertising coupled with personal selling (D) Signup and view all the answers

How are raw materials classified in business-to-business products?

According to how organizational customers use them (B) Signup and view all the answers

What is the primary goal during the introduction stage of the product life cycle?

To get first-time consumers to try the product (A) Signup and view all the answers

In which stage of the product life cycle do companies typically focus on reminding customers and reinforcing brand loyalty?

Maturity (B) Signup and view all the answers

What happens during the decline stage of the product life cycle?

Competitors begin to withdraw from the market (B) Signup and view all the answers

Which of the following is NOT a strategy for extending the product life cycle?

Price reductions across the board (D) Signup and view all the answers

What is a key characteristic of the growth stage in the product life cycle?

Market acceptance is achieved and profits increase (D) Signup and view all the answers

What type of brand is owned by producers and identified with the product at the point of sale?

Manufacturer brand (B) Signup and view all the answers

Which purpose does packaging NOT serve?

To increase product price (D) Signup and view all the answers

What is a co-brand?

A combination of two established brand names on the same product (A) Signup and view all the answers

What is a key reason for the increasing importance of new product development?

Responding to rapid technological changes (A) Signup and view all the answers

Which of the following elements is NOT an aspect of effective packaging?

Increases shelf space (B) Signup and view all the answers

The Product Life Cycle (PLC) describes which aspect of a product?

The course of a product’s sales and profits throughout its lifetime (C) Signup and view all the answers

What type of branding involves using names or symbols created by other manufacturers?

Licensed brand (C) Signup and view all the answers

Which of the following best describes private label brands?

Brands owned by retailers and not identified with the manufacturer (A) Signup and view all the answers

Study Notes

Product Definition

Product is anything offered to market to satisfy a need or want.
Physical products are goods; intangible products are services.
Other types of products include industrial products, experiences, ideas, individuals, places, and organisations.

Total Product Concept

Products consist of three levels: core product, actual product, and augmented product.
Core product provides the key benefit customers want from a product.
Actual product addresses the tangible features of the product, including packaging, brand name, design, quality level, and its functionality.
Augmented product offers additional services and benefits surrounding the product, such as delivery, credit, warranties, customer support, and symbolic experiences.

Product Item, Line, and Mix

A product item is an individual product.
A product line is a set of closely related product items.
Product mix refers to all product lines and items offered by a company.
Product mix width refers to the number of product lines offered.
Product mix consistency refers to how closely related different product lines are.

Product Line Decisions

Product line filling adds more items within the existing product line range.
Product line stretching extends the product line by adding items beyond the current range.

Types of Consumer Products

Convenience Products: Inexpensive and frequently purchased, requiring minimal effort for purchase.
Shopping Products: Purchased less frequently and require comparison of alternatives based on price, quality, and style.
Specialty Products: Possess unique characteristics that consumers are willing to make specific efforts to buy, and demonstrate loyalty to.
Unsought Products: Products consumers are unaware of, or have no initial interest in until a need arises.

Types of Business Products

Raw materials: Basic inputs in production processes.
Processed materials: Materials that have been processed but are not yet finished goods.
Equipment: Products used in production processes.
Component parts: Products integrated into the final product.
Maintenance, repair, and operating (MRO) products: Products used to support production processes.
Specialised services: Services designed for business customers.

Branding

Brand is a collection of symbols designed to differentiate a product and create a specific image in the customers' minds.
Brand sponsorship focuses on who owns the brand.
Manufacturer brands are owned by producers.
Private Label brands (store brands) are owned by retailers.
Co-brands combine two established brands from different companies.
Licensed brands use names or symbols previously created by other manufacturers.

Packaging

Packaging serves multiple functions. It attracts attention, communicates product benefits, provides brand recognition and personality, protects the product, provides usage information, and offers additional benefits.

New Product Development

Developing new products is a crucial process for companies to stay competitive in rapidly changing marketplaces, facing changing consumer preferences and constantly evolving technologies.

Product Life Cycle

Product Life Cycle (PLC) describes the stages of a product's sales and profits over its lifetime.
PLC has five stages: Product Development, Introduction, Growth, Maturity, and Decline.
Each stage presents opportunities for different marketing strategies.

Extending Product Life Cycle

Companies can lengthen their product's lifespan by using market modifications, product modifications, and mixed modifications.
Market modifications involve targeting new or existing customer groups, expanding into new markets, or increasing consumption by current customers.
Product modifications focus on altering the product's features, quality, or style.
Mix modifications involve adjusting the marketing mix elements to maintain product relevance.

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Description

Explore the foundational concepts of product management, including the various types of products and the total product concept. Understand the distinctions between core, actual, and augmented products, as well as product items, lines, and mixes.