GEB1011 MODULE 5 questions with
complete solutions
Product Development and the Total Product Offer - correct answer ✔✔Developing Value
• According to the American Marketing Association, value is a foundation of marketing.
• Value — Good quality at a fair price. When consumers calculate the value of a product, they look at the
benefits and then subtract the cost to see if the benefits exceed the costs.
• Adapting products to new markets is an ongoing challenge.
• Product development is a key activity in any modern business.
Distributed Product Development
• Distributed product development — Handing off various parts of your innovation process—often to
companies overseas.
• The increase in outsourcing has resulted in using multiple organizations separated by cultural,
geographic, and legal boundaries.
• Developing a total product offer
•• Total product offer — Everything that consumers evaluate when deciding whether to buy something;
also called a value package.
•• Products are evaluated on many different dimensions, both tangible and intangible.
•• Marketers must think like and talk to consumers to find out what's important.
Product Lines and the Product Mix
• Product line — A group of products that are physically similar or intended for a similar market.
• Product lines often include competing brands like:
•• Coca-Cola
•• Diet Coke
•• Coke Zero
•• Cherry Coke
,• Product mix — The combination of product lines offered by a manufacturer.
• Product mixes like Procter & Gamble's can be extensive:
•• Toothpaste
•• Cosmetics
•• Diapers
•• Batteries
•• Bar soap
Potential Components of a Total Product Offer - correct answer ✔✔The outermost level: brand name,
convenience, package, and price
The middle level: service, internet access, buyer's past experience, and store surroundings
The innermost level: speed of delivery, image created by advertising, reputation of producer, and
guarantee
Product Differentiation - correct answer ✔✔Product differentiation — The creation of real or perceived
product differences.
Marketers use a mix of branding, pricing, advertising, and packaging to create different images.
Marketing Different Classes of Consumer Goods and Services
• Convenience goods and services — Products that the consumer wants to purchase frequently and with
a minimum of effort.
• These include:
•• Candy and snacks
•• Gas
•• Milk
• Shopping goods and services — Those products that the consumer buys only after comparing value,
quality, price, and style from a variety of sellers.
,• Specialty goods and services — Consumer products with unique characteristics and brand identity.
Because these products are perceived as having no reasonable substitute, the consumer puts forth a
special effort to purchase them.
• These include:
•• Fine watches
•• Expensive wine
•• Designer clothes
•• Jewelry
•• Services provided by medical specialists
• Unsought goods and services — Products that consumers are unaware of, haven't necessarily thought
of buying, or find that they need to solve an unexpected problem. • These include:
•• Car-towing services •• Burial services
•• Insurance
Marketing Industrial Goods and Services
• Industrial goods — Products used in the production of other products; sometimes called B2B goods or
business goods.
• Industrial goods include:
•• Installations
•• Capital items
•• Accessory equipment
Various Categories of Consumer and Industrial Goods and Services - correct answer ✔✔Goods and
services are of two types: consumer goods and services and industrial goods and services.
Consumer goods and services consist of the following types: convenience, shopping, specialty, and
unsought.
Industrial goods and services consist of production goods and support goods.
, Production goods are made up of raw materials, component parts (engines), and production materials
(nuts and bolts)
Support goods are made up of installations (buildings, equipment, and capital rentals), accessory
equipment (tools and office equipment), supplies (paper clips, stationery, and other office supplies), and
service (maintenance and repair).
Packaging Changes the Product - correct answer ✔✔Companies often use packaging to change and
improve their basic product.
Examples include:
• Squeezable ketchup bottles
• Square paint cans with screw tops
• Single-use spice packets
Good packaging can also make a product more attractive to retailers.
Key Functions of Packaging
1. Attract buyers' attention
2. Protect the goods inside and be tamperproof
3. Be easy to open
4. Describe and give information about the product
5. Explain the product's benefits
6. Provide warranty information and warnings
7. Give an indication of price, value, and uses
The Growing Importance of Packaging
• Bundling — Grouping two or more products together and pricing them as a unit.
• IcelandAir bundled layover tours with an IcelandAir employee "stopover buddy."
complete solutions
Product Development and the Total Product Offer - correct answer ✔✔Developing Value
• According to the American Marketing Association, value is a foundation of marketing.
• Value — Good quality at a fair price. When consumers calculate the value of a product, they look at the
benefits and then subtract the cost to see if the benefits exceed the costs.
• Adapting products to new markets is an ongoing challenge.
• Product development is a key activity in any modern business.
Distributed Product Development
• Distributed product development — Handing off various parts of your innovation process—often to
companies overseas.
• The increase in outsourcing has resulted in using multiple organizations separated by cultural,
geographic, and legal boundaries.
• Developing a total product offer
•• Total product offer — Everything that consumers evaluate when deciding whether to buy something;
also called a value package.
•• Products are evaluated on many different dimensions, both tangible and intangible.
•• Marketers must think like and talk to consumers to find out what's important.
Product Lines and the Product Mix
• Product line — A group of products that are physically similar or intended for a similar market.
• Product lines often include competing brands like:
•• Coca-Cola
•• Diet Coke
•• Coke Zero
•• Cherry Coke
,• Product mix — The combination of product lines offered by a manufacturer.
• Product mixes like Procter & Gamble's can be extensive:
•• Toothpaste
•• Cosmetics
•• Diapers
•• Batteries
•• Bar soap
Potential Components of a Total Product Offer - correct answer ✔✔The outermost level: brand name,
convenience, package, and price
The middle level: service, internet access, buyer's past experience, and store surroundings
The innermost level: speed of delivery, image created by advertising, reputation of producer, and
guarantee
Product Differentiation - correct answer ✔✔Product differentiation — The creation of real or perceived
product differences.
Marketers use a mix of branding, pricing, advertising, and packaging to create different images.
Marketing Different Classes of Consumer Goods and Services
• Convenience goods and services — Products that the consumer wants to purchase frequently and with
a minimum of effort.
• These include:
•• Candy and snacks
•• Gas
•• Milk
• Shopping goods and services — Those products that the consumer buys only after comparing value,
quality, price, and style from a variety of sellers.
,• Specialty goods and services — Consumer products with unique characteristics and brand identity.
Because these products are perceived as having no reasonable substitute, the consumer puts forth a
special effort to purchase them.
• These include:
•• Fine watches
•• Expensive wine
•• Designer clothes
•• Jewelry
•• Services provided by medical specialists
• Unsought goods and services — Products that consumers are unaware of, haven't necessarily thought
of buying, or find that they need to solve an unexpected problem. • These include:
•• Car-towing services •• Burial services
•• Insurance
Marketing Industrial Goods and Services
• Industrial goods — Products used in the production of other products; sometimes called B2B goods or
business goods.
• Industrial goods include:
•• Installations
•• Capital items
•• Accessory equipment
Various Categories of Consumer and Industrial Goods and Services - correct answer ✔✔Goods and
services are of two types: consumer goods and services and industrial goods and services.
Consumer goods and services consist of the following types: convenience, shopping, specialty, and
unsought.
Industrial goods and services consist of production goods and support goods.
, Production goods are made up of raw materials, component parts (engines), and production materials
(nuts and bolts)
Support goods are made up of installations (buildings, equipment, and capital rentals), accessory
equipment (tools and office equipment), supplies (paper clips, stationery, and other office supplies), and
service (maintenance and repair).
Packaging Changes the Product - correct answer ✔✔Companies often use packaging to change and
improve their basic product.
Examples include:
• Squeezable ketchup bottles
• Square paint cans with screw tops
• Single-use spice packets
Good packaging can also make a product more attractive to retailers.
Key Functions of Packaging
1. Attract buyers' attention
2. Protect the goods inside and be tamperproof
3. Be easy to open
4. Describe and give information about the product
5. Explain the product's benefits
6. Provide warranty information and warnings
7. Give an indication of price, value, and uses
The Growing Importance of Packaging
• Bundling — Grouping two or more products together and pricing them as a unit.
• IcelandAir bundled layover tours with an IcelandAir employee "stopover buddy."
