M370 FINAL STUDY GUIDE
Product - Answer -Anything that is of value to a consumer and can be offered through a
voluntary marketing exchange
Places, Ideas, Organizations, People, or Communities that create value for consumers.
Core Customer Value - Answer -the basic problem solving benefits that consumers are
seeking
Actual Product - Answer -brand name, quality level, packaging, design, features
Augmented Product (Associated Services) - Answer -the nonphysical attributes of the
product including product warranties, financing, product support, and after-sale service
Consumer Products - Answer -used by people for their personal use
Specialty Products/Services - Answer -Strong preference and will spend considerable
effort to search for the best suppliers.
Shopping Products/Services - Answer -Consumers spend a fair amount of time
comparing alternatives.
Go from store to store and chat with salespeople.
Convenience Products - Answer -The customer isn't willing to expend any effort to
evaluate prior to purchase.
Commodity items purchased with little thought.
Unsought products/services - Answer -Consumers normally do not think of buying or do
not know about it.
Require lots of marketing effort and various forms of promotion.
Product mix - Answer -Complete set of all products and services offered by a firm.
Consisting of product lines
Product lines - Answer -Groups of associated items that consumers tend to use
together or think of as part of a group of similar products or services
Breadth - Answer -Count of the number of product lines offered by the firm
Depth - Answer -Number of products within a product line
, Cannabalize - Answer -If products are too similar, sales of one brand may take away
sales from the other brand with no net sales, profit, or market share increase.
Increase Depth - Answer -Add items to the product line in order to address changing
consumer preferences or preempt competitors while boosting sales.
An example would be Ben & Jerry's adding new flavors of ice cream.
Decrease Depth - Answer -Delete products within a product line to realign the firm's
resources, and the decision is never taken lightly.
Firms often prune product lines to eliminate unprofitable or low-margin items.
Decrease Breadth - Answer -Delete entire product lines to address changing market
conditions or meet internal strategic priorities.
Firms drop their line of protein bars to focus on energy drinks.
Increase Breadth - Answer -Add new product lines to capture new or evolving markets
and increase sales.
What % of new products actually succeed - Answer -3
Innovation - Answer -The process by which ideas are transformed into new offerings.
including products, services, processes, and branding concepts that will help firms
grow.
Without innovation and its resulting new products and services, firms would have only 2
choices: continue to market current products to current customers for the same product
to another market with similar customers.
Changing customer needs - Answer -When firms add products, services, and
processes to their offerings, firms can create and deliver value more effectively by
satisfying the changing needs of their current and new customers or by keeping
customers from getting bored with the current product or service offering.
Market Saturation - Answer -The longer a product exists in the marketplace, the more
likely it is that the market will become saturated.
Without new products or services, the value of the firm will ultimately decline.
Managing risk through diversity - Answer -Through innovation firms often create a
broader portfolio of products which helps them diversify their risk and enhance the firm
value better than a single product can.
If some products in a portfolio perform poorly, others may do well.
Product - Answer -Anything that is of value to a consumer and can be offered through a
voluntary marketing exchange
Places, Ideas, Organizations, People, or Communities that create value for consumers.
Core Customer Value - Answer -the basic problem solving benefits that consumers are
seeking
Actual Product - Answer -brand name, quality level, packaging, design, features
Augmented Product (Associated Services) - Answer -the nonphysical attributes of the
product including product warranties, financing, product support, and after-sale service
Consumer Products - Answer -used by people for their personal use
Specialty Products/Services - Answer -Strong preference and will spend considerable
effort to search for the best suppliers.
Shopping Products/Services - Answer -Consumers spend a fair amount of time
comparing alternatives.
Go from store to store and chat with salespeople.
Convenience Products - Answer -The customer isn't willing to expend any effort to
evaluate prior to purchase.
Commodity items purchased with little thought.
Unsought products/services - Answer -Consumers normally do not think of buying or do
not know about it.
Require lots of marketing effort and various forms of promotion.
Product mix - Answer -Complete set of all products and services offered by a firm.
Consisting of product lines
Product lines - Answer -Groups of associated items that consumers tend to use
together or think of as part of a group of similar products or services
Breadth - Answer -Count of the number of product lines offered by the firm
Depth - Answer -Number of products within a product line
, Cannabalize - Answer -If products are too similar, sales of one brand may take away
sales from the other brand with no net sales, profit, or market share increase.
Increase Depth - Answer -Add items to the product line in order to address changing
consumer preferences or preempt competitors while boosting sales.
An example would be Ben & Jerry's adding new flavors of ice cream.
Decrease Depth - Answer -Delete products within a product line to realign the firm's
resources, and the decision is never taken lightly.
Firms often prune product lines to eliminate unprofitable or low-margin items.
Decrease Breadth - Answer -Delete entire product lines to address changing market
conditions or meet internal strategic priorities.
Firms drop their line of protein bars to focus on energy drinks.
Increase Breadth - Answer -Add new product lines to capture new or evolving markets
and increase sales.
What % of new products actually succeed - Answer -3
Innovation - Answer -The process by which ideas are transformed into new offerings.
including products, services, processes, and branding concepts that will help firms
grow.
Without innovation and its resulting new products and services, firms would have only 2
choices: continue to market current products to current customers for the same product
to another market with similar customers.
Changing customer needs - Answer -When firms add products, services, and
processes to their offerings, firms can create and deliver value more effectively by
satisfying the changing needs of their current and new customers or by keeping
customers from getting bored with the current product or service offering.
Market Saturation - Answer -The longer a product exists in the marketplace, the more
likely it is that the market will become saturated.
Without new products or services, the value of the firm will ultimately decline.
Managing risk through diversity - Answer -Through innovation firms often create a
broader portfolio of products which helps them diversify their risk and enhance the firm
value better than a single product can.
If some products in a portfolio perform poorly, others may do well.
