Question

Answer the following questions in full and complete detail.

1. Classify each of the following products into either convenience, shopping, specialty or unsought goods: toothpaste, life insurance, Sharp TV, Eggo Waffles, lettuce, Coach handbag, Adidas soccer cleats, furniture. Using marketing information support your classification of each individual product.
2. Identify a specific brand that has developed a high level of brand equity. What specific aspects of that brand establish its brand equity?
3. Identify and describe the ways that companies generate new product ideas. Which of these ways involve the customer? How can firms assess the value of the ideas that customers generate?

Answer 1

1)Toothpaste - Convenience since toothpaste is used regularly.

2)Life Insurance - Unsought goods since people don't have knowledge about life insurance and people need advice on buying it.

3)Sharp TV-Shopping goods since price and other attributes of goods are compared.

4)Eggo Waffles- Convenience goods since waffles are regularly bought for consumption

5)Lettuce- Convenience goods since these are used regularly for consumption

5)Coach Handbag- Shopping goods since product attributes are compared before buying.

6)Adidas Soccer cleats -Speciality goods since Adidas is a brand and products are expensive.

7)Furniture-Shopping goods since furniture are compared with various brands before buying decision.

A brand which has developed a high level of brand equity is Rolls Royce which has developed the brand equity for a high level of customized luxury it provided in its cars. Rolls Royce provides luxury cars which are customized according to the tastes of customers and these cars are not sold to any customers even with those having money but only a few renowned people to keep its brand image intact.

Companies generate ideas by using idea generation techniques such as Brainstorming, teams, role-playing, mind mapping, research, focus groups etc. The ideas which involve customers are brainstorming, focus groups and research.

Firms can assess the value of ideas that customer generate by piloting a product or service program. Piloting an ideas will give the managers an idea about how the product or service will be received.