Product Management: Product Decisions

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Questions and Answers

Differentiate between a product and a service by providing an example of each and explaining their fundamental difference.

A product is tangible and can be owned (e.g., a smartphone), while a service is intangible and experienced (e.g., a haircut).

Explain the significance of product classification in marketing and provide two examples of product classifications.

Product classification helps tailor marketing strategies based on consumer behavior. Examples include convenience goods and specialty goods.

Describe what is meant by a product mix and a product line, and explain how decisions about them can impact a company's market position.

Product mix is the total range of products offered, while a product line is a group of related products. Strategic decisions impact brand image and market reach.

Outline the four stages of the Product Life Cycle (PLC) and give one strategic consideration for each stage.

Introduction (focus on awareness), Growth (maximize market share), Maturity (defend market share), Decline (reduce expenses and milk the brand). Signup and view all the answers

Explain the product diffusion process and why it's important for marketers to understand it.

The product diffusion process describes how new products are adopted over time in a market. Marketers use it to tailor their strategies for early vs. late adopters. Signup and view all the answers

Describe the main functions of packaging beyond simply containing a product. Provide an example.

Packaging protects, promotes (branding), and provides information. An example is tamper-evident seals for safety. Signup and view all the answers

Outline the key steps in the new product development process and explain why each step is crucial.

Idea generation, screening, concept testing, business analysis, prototype development, market testing, and commercialization. Each ensures the product meets market needs and is viable. Signup and view all the answers

Define a brand and explain the difference between brand features and brand types.

A brand is a name, term, design, or symbol that identifies a seller's product. Features are attributes of the brand, types are categories (e.g., national, private). Signup and view all the answers

Describe three different strategies that could be employed during the maturity stage of a product's life cycle. Briefly explain how each strategy can help to extend the product's life.

Market modification (increasing usage), product modification (improving features), and marketing mix modification (adjusting price or promotion). Signup and view all the answers

Explain how understanding the difference between a product and service can impact marketing and sales strategies.

Products need tangible marketing, focusing on features and benefits. Services need experiential marketing, highlighting customer experiences and outcomes. Signup and view all the answers

Flashcards

What is a product?

Anything offered to a market to satisfy a want or need.

What is a service?

An activity, benefit, or satisfaction offered for sale that is essentially intangible.