Page 321 - Foundations of Marketing

288 Part 4 | Product and Price Decisions

Issues for Discussion and Review

1. Is a personal computer sold at a retail store a consumer 7. What is brand equity? Identify and explain the major
product or a business product? Defend your answer. elements of brand equity.
2. How do convenience products and shopping products 8. What are the three major degrees of brand loyalty?
differ? What are the distinguishing characteristics of 9. Compare and contrast manufacturer brands, private
each type of product? distributor brands, and generic brands.
3. How does an organization’s product mix relate to 10. Identify the factors a marketer should consider in
its development of a product line? When should an selecting a brand name.
enterprise add depth to its product line rather than width 11. What is co-branding? What major issues should be
to its product mix? considered when using co-branding?
4. How do industry profits change as a product moves 12. Describe the functions a package can perform. Which
through the four stages of its life cycle? function is most important? Why?
5. What are the stages in the product adoption process, 13. What are the main factors a marketer should consider
and how do they affect the commercialization when developing a package?
phase? 14. In what ways can packaging be used as a strategic tool?
6. How does branding benefit consumers and marketers? 15. What are the major functions of labeling?

Marketing Applications

1. Choose a familiar clothing store. Describe its product 7. Identify a package that you believe to be inferior.
mix, including its depth and width. Evaluate the mix and Explain why you think the package is inferior, and
make suggestions to the owner. discuss your recommendations for improving it.
2. Tabasco pepper sauce is a product that has entered the 8. It is helpful to think of a total product offering as having
maturity stage of the product life cycle. Name products a combination of three interdependent elements: the core
that would fit into each of the four stages (introduction, product itself, its supplemental features, and its symbolic
growth, maturity, and decline). Describe each product or experiential value. For example, Southwest Airlines
and explain why it fits in that stage. does not just offer safe passage to your destination (core
3. Generally, buyers go through a product adoption product). It also offers two free checked bags (supple-
process before becoming loyal customers. Describe mental product offerings) and tries to create a fun envi-
your experience in adopting a product you now ronment to emphasize its culture of “luv” (experiential
use consistently. Did you go through all the product offerings). Use the following matrix to list the
stages? core products, supplemental benefits, and experiential
4. Identify two brands for which you are brand insistent. benefits for the four different companies.
How did you begin using these brands? Why do you no
longer use other brands? Core Supplemental Experiential

5. General Motors introduced the subcompact Geo Products Benefi ts Benefi ts
with a name that appeals to a world market. Invent a
BMW
brand name for a line of luxury sports cars that
also would appeal to an international market.
Suggest a name that implies quality, luxury, Starbucks
and value.
6. For each of the following product categories, choose an McDonald’s
existing brand. Then, for each selected brand, suggest
a co-brand and explain why the co-brand would be
Whole Foods
effective.
a. Cookies
b. Pizza 9. Develop your analytical and communication skills
c. Long-distance telephone service using the Role-Play Exercises online at
d. A sports drink www.cengagebrain.com.

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