238 Chapter 11: Product Concepts
CHAPTER QUIZ
1. An example of a convenience product is
a. stereo equipment.
b. gasoline.
c. a motorcycle.
d. a bicycle.
e. athletic shoes.
2. Price strategies become more mixed during the ___________ stage of the product life cycle.
3. People who enjoy trying new products and are often the first to do so are known as
a. early adopters.
b. the early majority.
c. market mavericks.
d. innovators.
e. laggards.
4. A group of closely related product items that are related because of marketing, technical, or end-use
considerations is a product
a. category.
b. dimension.
c. extension.
d. line.
e. mix.
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SEMESTER PROJECT
You Are Your Product
In Chapter 11 we learned about various ways organizations and consumers conceive of products and
services. In this exercise, you will define your product and look at ways to improve your product to make
it more desirable to your target market.
Step 1: Define your product. What are the unique elements of your product, you?
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ANSWERS TO DISCUSSION AND REVIEW QUESTIONS
1. List the tangible and intangible attributes of a pair of Nike athletic shoes. Compare the benefits
of the Nike shoes with those of an intangible product, such as a hairstyling in a salon.
This question is intended to get students to recognize that product benefits are more than the visible,
2. A product has been referred to as a “psychological bundle of satisfaction.” Is this a good
definition of a product? Why or why not?
Products do provide psychological benefits as well as satisfaction, but they are more than this simple
3. Is a personal computer sold at a retail store a consumer product or a business product? Defend
your answer.
The classification of products into the business or consumer class depends on the buyer’s purpose and
4. How do convenience products and shopping products differ? What are the distinguishing
characteristics of each type of product?
Convenience products (milk, pay telephones, and gasoline) are purchased at the closest retail facility.
5. In the category of business products, how do component parts differ from process materials?
Component parts become a part of the physical product and are either finished items ready for
6. How does an organization’s product mix relate to its development of a product line? When
should an enterprise add depth to its product lines rather than width to its product mix?
Product mix is the composite of products an organization sells. The product line includes a group of
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7. How do industry profits change as a product moves through the four stages of its life cycle?
8. What is the relationship between the concepts of product mix and product life cycle?
Most firms are not tied to a single product. They often have a number of products in the product mix,
9. What are the stages in the product adoption process, and how do they affect the
commercialization phase?
The stages of the product adoption process are the stages buyers must go through before they accept a
product. The first stage is awareness, when the buyer becomes aware of the product. The second stage
10. What are the five major adopter categories describing the length of time required for a
consumer to adopt a new product, and what are the characteristics of each?
Innovators are the first to adopt a new product; they enjoy trying new products and tend to be
11. In what ways does the marketing strategy for a mature product differ from the marketing
strategy for a growth product?
For a mature product, the sales curve starts to peak and decline, meaning the marketing strategy must
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12. What are the major reasons for new-product failure?
Some new products fail for a variety of reasons. One of the most common reasons is the company’s
failure to match product offerings to customer needs. When products do not offer value and do not
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ANSWERS TO APPLICATION QUESTIONS
1. Choose a familiar clothing store. Describe its product mix, including its depth and width.
Evaluate the mix and make suggestions to the owner.
Student answers will vary based on the clothing stores they choose. The width of product mix is
2. Tabasco pepper sauce is a product that has entered the maturity stage of the product life cycle.
Name products that would fit into each of the four stages: introduction, growth, maturity, and
decline. Describe each product and explain why it fits in that stage.
Again, student answers will vary based on the products they choose, but their responses should
include the following explanations for product life cycles:
3. Generally buyers go through a product adoption process before becoming loyal customers.
Describe your experience in adopting a product you now use consistently. Did you go through
all the stages of the process?
Student answers will vary based on their experiences, but they should go through some of the
following stages of the product adoption process.
1. Awareness. The buyer becomes aware of the product.
4. Identify and describe a friend or family member who fits into each of the following adopter
categories. How would you use this information if you were product manager for a fashion-
oriented, medium-priced clothing retailer such as J.Crew or JCPenney?
a. Innovator
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5. It is helpful to think of a total product offering as having a combination of three
interdependent elements: the core product itself, its supplemental features, and its symbolic
or experiential value. For example, Southwest Airlines does not just offer safe passage to
your destination (core product). It also offers two free checked bags (supplemental product
offerings) and tries to create a fun environment to emphasize its culture of “luv”
(experiential product offerings). Use the following matrix to list the core products,
supplemental benefits, and experiential benefits for the four different companies listed.
Core Products
Supplemental
Benefits
Experiential Benefits
BMW
Starbucks
Whole Foods
Core Products
Supplemental
Benefits
Experiential Benefits
BMW
BMW vehicles
Service and repairs,
luxury extras
Prestige, quality
driving experience,
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ANSWERS TO INTERNET EXERCISE
Goodyear Tire & Rubber Company
In addition to providing information about the company’s products, Goodyear’s website helps
consumers find the exact products they want and will even direct them to the nearest Goodyear
retailer. Visit the Goodyear site at www.goodyear.com.
1. How does Goodyear use its website to communicate information about the quality of its
tires?
The Goodyear website provides information on the features and benefits of each tire and allows
2. How does Goodyear’s website demonstrate product design and features?
Each tire page lists its features and benefits as well as the benefits of buying tires from Goodyear.
3. Based on what you learned at the website, describe what Goodyear has done to position its
tires.
Student answers will vary based on their personal interpretations. In general, Goodyear has
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ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The information obtained from these questions should assist you in developing various aspects of your
marketing plan found in the Interactive Marketing Plan at www.cengagebrain.com.
1. Using Figure 11.2 as a guide, create a matrix of the current product mix for your company.
Naturally, this matrix will vary a great deal from one student to the next. This matrix should show the
2. Discuss how the profitability of your product will change as it moves through each of the phases
of the product life cycle.
No product is profitable right away. During the introduction stage, sales will start at zero and profits
will be negative because of promotional and distribution expenses. Companies can spend years and
3. Create a brief profile of the type of consumer who is likely to represent each of the product
adopter categories for your product.
The product adopter categories are innovators, early adopters, early majority, late majority and
laggards. The following is a general description of each of these categories. The answers will vary
4. Discuss the factors that could contribute to the failure of your product. How will you define
product failure?
The answers to this question will vary depending on the product. However, factors like not
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COMMENTS ON THE CASES
VIDEO CASE 11.1: ARTISTRY MEETS AFFORDABILITY WITH BLU
DOT FURNITURE
Summary
This case discusses how a furniture company uses product concepts to create the right mix of affordable,
high-quality items. Blu Dot was created when the founders realized that there was a demand for high-
quality furniture that the average consumer would be able to afford. It sells a mix of business and
consumer furnishings. Its furniture, based on modernist design concepts, utilizes creative pricing
strategies and efficient uses of materials, processes, and distribution methods to create successful
products. As a result of its innovative products and strategies, Blu Dot has had a sustained growth rate of
40-60 percent since 1996.
Questions for Discussion
1. What are the different challenges for Blu Dot in selling consumer products versus business
products?
The first question asks students to explain the direct challenges that Blu Dot faces in selling consumer
products versus business products. Some challenges involve design and pricing concerns. Consumers,
2. Do you think that the product life cycle would be an important marketing concept in developing
and managing Blu Dot products?
Absolutely—what stage the product is at determines the pricing and the decision–making process.
3. Describe the product mix and the importance of different product lines in Blu Dot’s marketing
strategy.
Blu Dot’s product mix consists of tables, storage, accessories, desks, beds, seating, and shelving.
CASE 11.2: WYNDHAM HOTELS PORTFOLIO OF BRANDS
SATISFIES DIVERSE CUSTOMER NEEDS
Summary
This case examines how Wyndham Worldwide customizes its hotel chains to attract and satisfy
different target markets. While the core product, a place to stay, is the same no matter the hotel, the
supplemental and experiential benefits of Wyndham’s hotel chains differ. The company adjusts its
marketing strategies to suit both the product’s benefits and its stage in the product life cycle. Overall,
Wyndham has achieved great success in creating a successful product mix to meet the needs of
different customers.
Questions for Discussion
1. How is Wyndham using symbolic and experiential benefits to target its hotels to certain
groups of travelers?
Experiential benefits are based on customers’ experiences with the product and often have
symbolic meanings for buyers. The atmosphere at each of Wyndham’s hotels is its main
2. How is Wyndham using supplemental features at its hotels to create a competitive
advantage?
Travelers expect supplemental items from hotels, such as certain amenities and friendly service.
3. How should Wyndham market its hotels according to their stages in the product life cycle?
Wyndham adjusts its marketing strategies according to each chain’s stage in the product life