Allocating Fixed Costs

Allocating fixed costs to products, in order to more fully assess product profitability, can be determined in different ways with different outcomes. In the following example, the firm was allocated its fixed costs equally each of its products – what impact does this have?



Product  A Product  B Product  C Product D TOTAL
Gross profit $4m $1m $2m
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IMC Tools for a Major Campaign

In this activity, you need to help a bank decide the most appropriate IMC tools mix for a major launch of a new innovative credit card. There are many possible promotional tools to choose from. Try to integrate the campaign across the various elements.




Prime time TV

Local newspapers


Daytime TV

Specialist newspapers

Bus shelters


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Handling Channel Conflict

When a firm utilizes multiple channels, it is likely that channel conflict will occur from time to time. The following situation is based upon a real business situation. What would you do in this situation?



Pop-mints are a fairly successful brand of breath fresheners. Their main competitor is Tic Tacs, and their indirect competitors are the various brands of … See the full activity...

Product Management

Read the following case study on a hypothetical product manager for frozen pizza. They are faced with a strategic challenge for which way to growth the business. If you were this product manager, what would you do?



Larry is a product manager for frozen pizza for a large national firm. He is in his late 20’s and is … See the full activity...

Line and Brand Extensions

Firms are usually faced with four broad branding choices. Obviously, having good brand equity presents the opportunity to leverage this strength in the marketplace for greater profitability. In this activity, your task is to simply classify each example to the brand strategy choice (refer list) that the firm has pursued.



  1. Coca-Cola also sells several ‘budget’ soft drink brands (in
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Changing Attributes – A Good Idea?

The following company has an idea to modify the attributes of its existing product. The goal is to try and increase sales. However, there is a risk that sales could actually decrease instead – what do you think?


Pop-ups drinks were introduced to the market just three years ago and have proven to be a fairly successful product. Pop-ups … See the full activity...

Design = Mix of Attributes

By changing a product’s mix of attributes you effectively create new products, which may provide a solution to a different consumer need. In this activity, you need to modify the mix of attributes for a table in order to meet different needs. A list of various attribute alternatives for a table has been included to get you started.




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Characteristics of Services

Services have a number of distinct characteristics (see list below) that create a unique set of marketing challenges for services marketers. Your task in this exercise is to review the following statements to identify its particular distinguishing service characteristic.



  1. “I’m so disappointed with the restaurant last night. We went there for the first time a few weeks ago
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Classifying Consumer Products

For a related discussion exercise – please see the marketing mix and shopping products

Consumer products can be classified (see list in question area) into different types, in order to better understand their consumer’s behavior and to assist in the design of their supporting marketing mix. Your task in this activity is to appropriately classify the following list of products.See the full activity...

Designing a Product’s Augmentation

As you add more value to a product, you also increase your costs of producing the product. The question is whether your consumers actually see value in the extra ‘benefits’ that you are providing. In this activity for a banking ‘club”, you need to determine what would be the appropriate level of augmentation for each of the club’s elements.


ACTIVITY/TASKSee the full activity...

The Value of Product Augmentation

Choose between the following sets of competitive product offerings. One of the choices is more heavily augmented. Review your selection, how important was the augmented product level in your decision? Are you willing to pay more?



Listed below are three sets of two product offerings. For each set, choose product one OR product two.

Choice for software

Software One… See the full activity...

Product Levels/Dimensions

Introduction to the student activity

A product exists on different levels. In the simplest approach to this model, a product has three levels – core, actual and augmented.

Your task in this activity is to classify the offerings of a computer retailer into actual and augmented product levels.

(Note: Their core product is the need to produce/store files, documents, and … See the full activity...

A Product Meets a Need

A product should meet a need or provide a solution for a consumer. In this activity you need to complete the table – sometimes you need to identify the consumer’s need and sometimes you need to identify the product solution. Several examples have been provided to get you started.



Consumer’s Need or Problem

Product Solution

Contact lenses are trouble

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