MAR3023 Exam #3 (Brady - FSU) |84 Questions
and Answers
What is a Product? - -Good, service, or idea (or combination)
-What is a Good? - -Tangible, physical entity
-What is a Service? - -Intangible, result of application of human and mechanical efforts to
people or objects
-What is an Idea? - -Concept, philosophy, image, or issue
-What are the 2 types of Products? - -1. Consumer Products
2. Business Products
-What are Consumer Products? - -Purchased to satisfy personal and family needs, and are
classified according to how buyers generally behave when purchasing them
-What are some Sub-Types of Consumer Products? - -Convenience Proudcts- inexpensive
and frequent
Shopping Products- planned efforts to purchase
Specialty Products- have unique characteristics
Unsought Products- tow truck, emergency room, etc
-What are Business Products? - -Purchased to use for operations to resell, or to use in
manufacturing of another product (this is MOST COMMON product type) (ex- installations,
raw materials, business services, MRO supplies)
-What are Core Products? - -Physical or intangible good or service that the customer
receives (ex- acetaminophen, cola, beer)
-What is a Branded Product? - -Core Product plus the characteristics that allow the
consumer to differentiate from similar products (Tylenol, Coca-Cola, Blue Moon)
-What are Augmented Products? - -Characteristics that enhance value beyond that of core
and branded products (Think of Starbucks with its "third place" or certain features that
make a product better)
-What is the Product Mix? - -All of the products a company sells (such as all of P&G's
products)
-What are Product Lines? - -Closely related products marketed by an organization (such as
all of Oreo's Different flavors)
, -What is Product Line Depth? - -Number of items in a product line (Coke has 8 diferent
flavors, so their depth is 8)
-What is Product Line Width? - -Number of different Product Lines a company makes (Ex-
Proctor and Gamble has detergent, tooth paste, soap, etc)
-What are the 4 Stages of the Product Life Cycle? - -1. Introduction (Low Sales, High Cost,
No Profit)- high failure rates
2. Growth (Increased Sales, Decreased Costs, Some Profit)- entrance of competitors
3. Maturity (Constant Sales, Decreased Costs, Increased Profit)
4. Decline (Decreased Sales, Constant Costs, Decreased Profit)
-Different types of Product Life Cycles - -1. High-technology products (iPhones)
2. Fads (silly bands)
3. Styles or fashions (skinny ties)
-What are the 4 way to Extend a Product Life Cycle? - -1. Sell to New Segments
2. Stimulate more Frequent Use
3. Encourage More Use per Occasion
4. Promoting More Varied Use
-Reposition and improvements - -Modifications to product formulas or service (Arm &
Hammer changing to baking soda)
-What are Line Extensions? - -Products developed closely related to one or more
successful products in existing product lines but specifically designed to meet a somewhat
different need (
-What are some examples of Up Market Extension and Down Market Extension? - -Down
Market: Expensive good has affordable option (Ex- Mercedes B Class)
Up Market: Cheap goods have a luxury option (Ex- Premium kit kat bar or McDonalds
making a $12 burger)
-What are Brand Extensions? - -Products developed is not closely but still somewhat
related to one or more products in existing product line (Ex- Reese's sells Peanut butter or
Starbucks selling ice cream)
-What is a Product Modification? - -Changing one or more characteristics of a product and
STOPS sales of older version- DIFFERENCE BETWEEN THIS and EXTENSIONS(Ex- New Car
Models)
-What is a Functional Modification? - -Changes impact versatility, effectiveness,
convenience- requires redesign of product (Ex- New Heinz ketchup packets)
-What percentage of new products fail? - -80%
and Answers
What is a Product? - -Good, service, or idea (or combination)
-What is a Good? - -Tangible, physical entity
-What is a Service? - -Intangible, result of application of human and mechanical efforts to
people or objects
-What is an Idea? - -Concept, philosophy, image, or issue
-What are the 2 types of Products? - -1. Consumer Products
2. Business Products
-What are Consumer Products? - -Purchased to satisfy personal and family needs, and are
classified according to how buyers generally behave when purchasing them
-What are some Sub-Types of Consumer Products? - -Convenience Proudcts- inexpensive
and frequent
Shopping Products- planned efforts to purchase
Specialty Products- have unique characteristics
Unsought Products- tow truck, emergency room, etc
-What are Business Products? - -Purchased to use for operations to resell, or to use in
manufacturing of another product (this is MOST COMMON product type) (ex- installations,
raw materials, business services, MRO supplies)
-What are Core Products? - -Physical or intangible good or service that the customer
receives (ex- acetaminophen, cola, beer)
-What is a Branded Product? - -Core Product plus the characteristics that allow the
consumer to differentiate from similar products (Tylenol, Coca-Cola, Blue Moon)
-What are Augmented Products? - -Characteristics that enhance value beyond that of core
and branded products (Think of Starbucks with its "third place" or certain features that
make a product better)
-What is the Product Mix? - -All of the products a company sells (such as all of P&G's
products)
-What are Product Lines? - -Closely related products marketed by an organization (such as
all of Oreo's Different flavors)
, -What is Product Line Depth? - -Number of items in a product line (Coke has 8 diferent
flavors, so their depth is 8)
-What is Product Line Width? - -Number of different Product Lines a company makes (Ex-
Proctor and Gamble has detergent, tooth paste, soap, etc)
-What are the 4 Stages of the Product Life Cycle? - -1. Introduction (Low Sales, High Cost,
No Profit)- high failure rates
2. Growth (Increased Sales, Decreased Costs, Some Profit)- entrance of competitors
3. Maturity (Constant Sales, Decreased Costs, Increased Profit)
4. Decline (Decreased Sales, Constant Costs, Decreased Profit)
-Different types of Product Life Cycles - -1. High-technology products (iPhones)
2. Fads (silly bands)
3. Styles or fashions (skinny ties)
-What are the 4 way to Extend a Product Life Cycle? - -1. Sell to New Segments
2. Stimulate more Frequent Use
3. Encourage More Use per Occasion
4. Promoting More Varied Use
-Reposition and improvements - -Modifications to product formulas or service (Arm &
Hammer changing to baking soda)
-What are Line Extensions? - -Products developed closely related to one or more
successful products in existing product lines but specifically designed to meet a somewhat
different need (
-What are some examples of Up Market Extension and Down Market Extension? - -Down
Market: Expensive good has affordable option (Ex- Mercedes B Class)
Up Market: Cheap goods have a luxury option (Ex- Premium kit kat bar or McDonalds
making a $12 burger)
-What are Brand Extensions? - -Products developed is not closely but still somewhat
related to one or more products in existing product line (Ex- Reese's sells Peanut butter or
Starbucks selling ice cream)
-What is a Product Modification? - -Changing one or more characteristics of a product and
STOPS sales of older version- DIFFERENCE BETWEEN THIS and EXTENSIONS(Ex- New Car
Models)
-What is a Functional Modification? - -Changes impact versatility, effectiveness,
convenience- requires redesign of product (Ex- New Heinz ketchup packets)
-What percentage of new products fail? - -80%
