Introducing and Managing the Product

When a new product is developed and offered, a company must consider what will develop the product's value to the customer, whether the customer is a consumer or another business. Marketers must always ask where a new product will fit in their current lineup and how the new product will serve as an extension of an existing brand. Take the car manufacturer BMW. They make sporty luxury vehicles aimed at the upper-middle and wealthy classes.

DISCUSSION QUESTIONS

  1. What overriding objectives should be kept in mind when designing a product strategy?
  2. How do the strategies of market extension and market segmentation differ?
  3. Identify the steps a product manager should take in deciding how to position a product.
  4. In what kind of market situation will a strategy of product differentiation be most effective?
  5. What are the four product mix strategies discussed in the chapter? Name three reasons why a company might decide to alter its product mix.
  6. What factors would impact a marketing manager's decision to engage in a temporary or permanent price change for a mature product?
  7. How would you define the term "product"? Differentiate between the points of view of the manufacturer and the customer.
  8. Distinguish between convenience goods, shopping goods, and specialty goods. Can you think of examples that belong in each category, other than those discussed in the chapter?
  9. Compare and contrast the consumer's view and the firm's view of a new product.
  10. Describe the steps in the new product development process. Are all these steps necessary?