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IV. END-OF-CHAPTER ANSWER GUIDE
Chapter Questions and Activities
CONCEPTS: TEST YOUR KNOWLEDGE
9.1 What are some reasons a firm might determine it should expand a product line? What are some
reasons for contracting a product line? Why do many firms have a product mix strategy?
When a firm has a large number of product variations in its product line, it is said to carry a full line.
A company that adopts a limited line strategy markets a smaller number of product variations. In
9.2 Why is quality such an important product strategy objective? What are the dimensions of product
quality? How has e-commerce affected the need for quality product objectives?
Product objectives often address product quality or the product’s ability to satisfy customers. Product
quality is tied to customer expectations of product performance. It can mean durability, reliability,
9.3 Explain the product life cycle concept. What are the stages of the product life cycle?
The four-stage product life cycle (PLC) concept helps to explain the diffusion of an innovation. The
first or introduction stage is characterized by slow growth. The growth stage is characterized by
9.4 How are products managed during the different stages of the product life cycle?
Phases:
Introduction—the goal in this stage is to get first-time buyers to try the product. Prices are often
high in this stage and profits are nonexistent.
9-5 What is a brand? What are the characteristics of a good brand name? How do firms protect their
brands?
A brand is a name, a term, a symbol, or any other unique element of a product that identifies one firm’s
product(s) and sets it apart from the competition. Brands are important because they help to develop
9-6 What is a brand extension? What is sub-branding?
Products with strong brand equity provide exciting opportunities for marketers. A firm may leverage a
9.7 What are individual and family brands? A national brand? A store brand?
Individual brand—a brand used for one product only.
9-8 What does it mean to license a brand? What is cobranding?
Some firms choose to use licensing to brand their products. Typically, a licensing agreement means
9-9 What are the functions of packaging? What are some important elements of effective package design?
A package is the covering or container for a product and serves to protect a product and allow for
easy use and storage. In addition, the colors, words, shapes, designs, pictures, and materials used in
9-10 What should marketers know about package labeling?
Labels should:
9.11 Describe some of the different ways firms organize the marketing function to manage existing
products. What are the ways firms organize for the development of new products?
One way that firms manage existing products is with individual brand managers who supervise all
the marketing activities for a single brand. Other firms may include product category managers to
ACTIVITIES: APPLY WHAT YOU’VE LEARNED
9-12 In Class, 10–25 Minutes for Teams You have been asked to give a presentation on the product life
cycle to a small group of students who are interning at your firm this summer. Describe each of the
stages of the product life cycle—introduction, growth, maturity, and decline—and give examples of
products in the various stages. Include examples of products that are in transition stages as well as
examples of some product failures and some products that have been discontinued.
Students can select products and give examples of them in various stages of the product life cycle.
9-13 For Further Research (Individual) Select a company that has products under the same corporate
brand name that includes products that represent a down- ward line stretch as well as products that
represent an upward line stretch. Identify at least one product that fits within each category and identify
what specific at- tributes separate each from the other.
MyMarketingLab for answers to Assisted Graded Questions
9-14 Creative Homework/Short Project You have been recently promoted at P&G and have been tasked
with identifying five cobranding opportunities. These cobranded products could be P&G products or a
P&G product cobranded with another firm’s brand. Describe each of the cobranding opportunities and
define the advantages that would result from each.
9-15 For Further Research (Individual) The wine industry over the years has undergone a number of
changes in the elements that make up the packaging of a bottle (or other type of individual
package) of wine sold for consumption. Conduct research to identify some of the specific differences
in the features of wine’s packaging. Identify both the pros and cons of each packaging approach observed
from a sustainability and marketing perspective (that is, consider different preferences and ideas held by
different segments of the wine market affected by the related packaging features).
9-16 In Class, 10–25 Minutes for Teams Assume that you are working in the marketing department of a
major manufacturer of athletic shoes. Your firm is introducing a new product, a line of disposable sports
clothing. That’s right—wear it once and toss it! You wonder if it would be better to market the line of
clothing with a new brand name or use the family brand name that has already gained popularity with
your existing products. Make a list of the advantages and disadvantages of each strategy. Develop your
recommendation.
9-17 In Class, 10–25 Minutes for Teams As an entrepreneur, you know you want to open a new grocery
store, but you aren’t sure what kind of products you want to carry. Discuss the importance of national
brands, store brands, and generic brands. Which brand or brands will your new story carry? Briefly
explain your decision.
Firms may develop individual brand strategies or market multiple items with a family or umbrella
brand strategy. Individual brands may do a better job of communicating clearly and concisely what the
consumer can expect from the product, National or manufacturer brands are owned and sold by
producers, whereas private-label or store brands carry the retail or chain store’s trade name. Students can
select products for a new grocery store and decide which branding strategy to use. They should explain
the rationale behind their decision.
9-18 For Further Research (Individual) Find an example of a brand extension that you believe
negatively impacted consumer perceptions of the brand. Explain why you believe this to be the case by
citing aspects of the brand extension that you believe were most detrimental as well as specific evidence,
if available.
Students can find print or digital examples of brand extensions that have negatively impacted
consumer perceptions of the brand. For example, some brands of yogurt have brand extensions with so
much sugar that the entire brand is negatively perceived.
9-19 Creative Homework/Short Project Assume that you have been recently hired by Kellogg, the cereal
manufacturer. You have been asked to work on a plan for redesigning the packaging for Kellogg’s cereals.
In a role-playing situation, present the following report to your marketing superior: Discussion of the
problems or complaints customers have with current packaging.
a. Several different package alternatives
b. Your recommendations for changing packaging or for keeping the packaging the same.
Before beginning this exercise, it is suggested that students visit a grocery store to familiarize
themselves with packaging of Kellogg’s and other cereal brands. The students will notice color,
jazzy names, contests, and other gimmicks that normally are associated with cereal
merchandising. However, ask students to also look for alternative packaging such as foil pouches,
9-20 For Further Research (Individual) You are interested in the role that Six Sigma plays with
regard to product quality. Using the Internet, research the concept of Six Sigma and find at least
two case studies on companies that employ Six Sigma in their day-to-day activities. Summarize
your findings in a short report.
The term Six Sigma comes from the statistical term sigma, which is a standard deviation from the
mean. Six Sigma refers to six standard deviations from a normal distribution curve. In practical
APPLY MARKETING METRICS
The chapter introduced you to the concept of brand equity, an important measurement of the value vested
in a product’s brand in and of itself. Different formulas for calculating brand equity exist. One
well-publicized approach is that of Interbrand, which annually publishes its Best 100 Global Brands list.
Go to the location on the Interbrand website where they provide these rankings for the present and past
years www.interbrand.com, then click on “Best Global Brands.” Peruse the list of brands and select any
five in which you have interest. For each, observe whether brand equity has been trending up or down
over the past few years.
9-21 How does Interbrand explain the changes (or stability) in each?
9-22 Do you agree with Interbrand’s assessment or do you have another opinion about why your brand’s
equity is what it is?
CHOICES: WHAT DO YOU THINK?
9-23 Critical Thinking Brand equity means that a brand enjoys customer loyalty, perceived quality, and
brand-name awareness. To what brands are you personally loyal? What is it about the product that creates
brand loyalty and, thus, brand equity?
MyMarketingLab for answers to Assisted Graded Questions
9-24 Critical Thinking Are there specific products that you purchase where branding does not matter and
has never mattered to you? What characteristics of the related products and your own individual
preferences can help explain why this might be the case?
9-25 Critical Thinking Quality is an important product objective, but quality can mean different things for
different products, such as durability, precision, aesthetic appeal, and so on. What does quality mean for
the following products?
a. Smart phone
b. Pop-up tent
c. Athletic wear
d. Vacuum cleaner
e. Pet food
f. College education
9-26 Critical Thinking Many times firms take advantage of their popular, well-known brands by
developing brand extensions because they know that the brand equity of the original or parent brand
will be transferred to the new product. If a new product is of poor quality, it can damage the reputation
of the parent brand, while a new product that is of superior quality can enhance the parent brand’s
reputation. What are some examples of brand extensions that have damaged and that have enhanced
the parent brand equity?
Some examples to get the discussion started are:
Positive examples—Reese’s, the maker of Reese’s Peanut Butter Cups candy, is now
Negative examples—New Coke’s addition to the established Coca-Cola line as a potential
9-27 Ethics According to a U.K. study of 1,000 people, 91 percent felt that “the way company behaves
towards its customers and communities is influential when making a purchase.”i Do you share the
same belief? Have you ever looked up, for example, a company’s environmental initiatives before
making a purchase? How important is a brand’s ethical behavior to you? Have you ever not
purchased a brand because of the ethics of the company behind the brand?
MyMarketingLab for answers to Assisted Graded Questions
9-28 Critical Thinking Sometimes marketers seem to stick with the same packaging ideas year after
year regardless of whether they are the best possible design. Following is a list of products. For
each one, discuss what (if any) problems you have with the package of the brand you use. Then
think of ways the package could be improved. Why do you think marketers don’t change the old
packaging? What would be the results if they adopted your package ideas?
a. Dry cereal
b. Laundry detergent
c. Frozen orange juice
d. Gallon of milk
e. Potato chips
f. A loaf of bread
To do this project it would probably be better to place the students in small groups and let them
communication advantages and disadvantages to changing a package design. Can they remember a
package change recently for one of their favorite products? What did they like or not like about the
change in packaging?
9-29 Critical Thinking In recent years, for packaged products the FDA has proposed that companies
include the percentage daily value for added sugar on the nutrition label. The primary reasoning behind
this proposal is that it would provide information on added sugars comparable to what consumers have
been exposed to for nutrients such as saturated fat and sodium that the FDA advises should be limited in
consumption. Do you think that this update to include added sugar is necessary? Do you believe that this
update will alter how people consume and make consumption decisions on products containing added
sugars? Explain the reasoning behind your answers.
9-30 Ethics If a company knows that a snack or beverage is typically consumed in a single sitting (such
as a bottle of soda or a bag of chips), is it ethical for that company to include on the product’s nutrition
label values based on the identification of multiple servings within the product (that is, the nutrition
values displayed would represent a single serving of the product that is less than the whole product,
making it necessary to multiply those values by the number of servings to identify the total nutritional
value of the package)?
9-31 Critical Thinking Should a brand be viewed as socially responsible if the parent company of which
the brand is a part engages in activities in direct contradiction to (and generally outweighing) the socially
responsible actions engaged in by the brand itself?
9-32 Ethics You learned in this chapter that it’s hard to legally protect brand names across product
categories—Quaker and Apple, for example, and also Delta—which is an airline and a faucet. But what
about the ethics of borrowing a name and applying it to some unrelated products? Think of some new
business you might like to start up. Now consider some possible names for the business that are already in
use as brands in other, unrelated categories. Do you think it would be ethical to borrow one of those
names? Why or why not?
MINI-PROJECT: LEARN BY DOING
In any supermarket in any town, you will surely find thousands of examples of product packaging. This
miniproject is designed to give you a better understanding of how branding, cobranding, and packaging
all work together to compete for your purchasing dollars.
a. Go to a typical supermarket in your community.
b. Select two product categories of interest to you: ice cream, cereal, laundry detergent, soup,
frozen meals, and so on.
c. For each product category, visit that area of the store. Write down a list of the three items that attract
your attention first. Identify what it was about the product that attracted your attention (the
brand, cobrand, or package design).
d. For each of the three products, identify which you are most likely to buy based on the first look
alone. Explain why you chose this product.
9-33 Pick up each of three products and study their package design and any information you can find about
the product. Now which product are you most likely to buy? Explain why you chose this product.
The purpose of the mini-project listed in the chapter is to develop an understanding of branding,
cobranding, and packaging as it exists in the marketplace.
9-34 Present a summary to your class on what you learned about the brands and packaging in your two
product categories.
V. MARKETING IN ACTION CASE: REAL CHOICES AT BLUE
DIAMOND
Summary of Case
Blue Diamond Growers, almond growers, is dedicated to discovering and building customers by
establishing new products, finding new uses, and creating new opportunities. Core brands include Blue
Diamond roasted almonds, Almond Breeze almond milk, and Nut Thins nut and rice cracker snacks. The
original product, snack almonds, already comes in many tasty varieties but that doesn’t stop Blue
Diamond from seeking out new ways to grow the brand. The latest family of flavors is branded “Bold,”
with tastes described as “bold, brash and daring enough to stand out in any crowd.” example flavors
include Sriracha, Jalapeno Smokehouse, Wasabi & Soy Sauce, and habanero BBQ.
Because of growing consumer desire for lower fat and more nutritious alternatives, milk drinkers have
been seeking alternatives to dairy. Almond Breeze Almond milk is low in calories and saturated fat, and is
a good source of calcium and vitamin E. Nut Thins are a crunchy cracker made with rice and nuts. They
are promoted as ideal for snacking or as a tasty appetizer. A recent growth approach for Blue Diamond is
a line of honey-flavored products. The new theme is applied across its Snack Almonds, Nut Thins, and
Almond Breeze brands. Honey is growing in popularity as a great natural alternative to sugar. Clearly
Blue Diamond is using products and branding successfully to spark new growth opportunities. The
question is: How do they keep up the momentum?
Suggestions for Presentation
This case could be assigned for various out-of-class or in-class discussion activities.
Out-of-Class
Compare and contrast the similarities and differences between Blue Diamond’s products and other
competing companies from a marketing standpoint. Also consider other non-dairy competitors such as
purveyors of coconut milk and coconut milk products. Which would you buy?
Evaluate the strengths and weaknesses of Blue Diamond products packs and other similar competitors’
products. Do you feel one is superior to the others?
In-Class
Discuss how the nut industry is affected and influenced by the product life cycle.
As a class project, conduct a SWOT analysis focused on the marketing aspects for Blue Diamond.
You Make the Call
9-35 What is the decision facing Blue Diamond?
9-36 What factors are important in understanding this decision situation?
The following factors are important in understand this decision situation:
How to utilize a potential growth opportunity for products that are lower in fat and have
nutritional benefits?
9-37 What are the alternatives?
Students might recommend a variety of different alternatives. Some possibilities are:
Expend a significant effort and allocate a large budget to a marketing campaign for new almond
products.
9-38 What decision(s) do you recommend?
9-39 What are some ways to implement your recommendations?
MYMARKETINGLAB
Go to mymktlab.com for Auto-graded writing questions as well as the following assisted-graded writing
questions:
9-40 Creative Homework/Short Project. You may think of your college or university as an organization
that offers a line of different educational products. Assume that you have been hired as a marketing
consultant by your university to examine and make recommendations for extending its product line.
Develop alternatives that the university might consider:
a. Upward line stretch
b. Downward line stretch
c. Two-way stretch
d. Filling-out stretch
Describe how each extension might be accomplished. Evaluate each alternative.
9-41 Creative Homework/Short Project. Assume that you are the vice president of marketing for a firm
that markets a large number of specialty food items (gourmet sauces, marinades, relishes, and so on).
Your firm is interested in improving its marketing management structure. You are considering several
alternatives: using a brand manager structure, having product category managers, or focusing on market
managers. Outline the advantages and disadvantages of each type of organization. What is your
recommendation?
i
