(7) Product Strategy

Most firms today compete in mature markets characterized by commoditization. In these cases, the ______ typically becomes incapable of differentiating the product offering from those of the competition.
Core Product
Although the product is at the heart of the marketing strategy, it is important to remember that the product offering itself is of little value to customers. The real value that a product offering come from:
Its ability to deliver benefits that enhance a customer’s situation
Mallory is an avid collector of antiques. In fact, she spends practically every weekend traveling to small towns and antique shops in search of unique antique treasures. For Mallory, antiques are a perfect example of:
Specialty Product
Why would a firm offer a deep assortment of products in its product portfolio?
To attract a wide range of customers and market segment
Why is the demand for most services – such as popular restaurants – extremely time and place dependent?
Because customers must be present for service to be delivered
Unlike tangible goods, virtually all services are susceptible to inconsistency and variations in quality. Why is this so?
Because services depend on people for their delivery
To compete in the fast growing hybrid segment, Honda introduced the Civic Hybrid with unique styling and great fuel economy. Which product development strategy has Honda implemented?
Product line extension
Assume Kia has developed a new product idea to launch a midsize pickup. Currently, Kia is developing a prototype and working on projected costs, revenues, and profit potential. Kia is currently at what stage of the new product development process?
Screening and evaluation
When Meghan went to by groceries, she found everything on her list except Pampers diapers. While the store had other competing brands in stock, Meghan left and drove five miles to the next store where she found the Pampers. It appears that Meghan exhibits a high degree of ____ for Pampers diapers.
Brand insistence
One way of looking at _____ is to consider the marketing and financial value associated with a brand’s position in the marketplace.
Brand equity
If you purchase a notebook computer from Dell, you will note several brand insignias on the outside, such as Dell, Intel, and Microsoft Windows. What type of branding strategy does this example represent?
Co-branding
Which of the following IS NOT a function or potential function of packaging?
Integration
As a tool of positioning strategy, perceptual maps illustrate two basic issues. First, they indicate products/brands that are similar in terms of relative mental position. Second, they illustrate:
voids in the current mindscape for a product category
Without a doubt, the most important tool of product differentiation is:
The brand
With respect to product descriptors, the product’s _____ communicate(s) how the product behaves, hopefully in a fashion that is distinctive and appealing to customers.
Advantages
Since the introduction of the Atkins diet, many food and beverage marketers have focused on the low carbohydrate counts in their products. Many of these firms have launched promotional campaigns that directly compare their products to competing products having higher carbohydrate counts. In terms of product positioning, these promotional campaigns are designed to:
Reposition competing firms and their products
One of the most common marketing goals during the introduction stage of the product life cycle is to:
Engage in customer education activities
Which stage of the product life cycle has 1) establishing a strong, defensible market position and 2) achieving financial objectives that repay investment as its main priorities?
Growth
During the maturity stage of the product life cycle, a firm has four general goals that can be pursued. Which of the following IS NOT one of these options?
Divest the product
Firms using the _____ approach during the decline stage of the product life cycle will gradually reduce marketing expenditures and use a less resource-intensive marketing mix.
Harvesting