1.9.1 - Product

Question 1

What is Product?

Answer 1

The good or service offered to the customer. Including elements such as branding, packaging and quality.

Question 2

What are the three levels of a product?

Answer 2

-Core
-Actual
-Augmented

Question 3

What is the Core Level?

Answer 3

The basic function of a product

Question 4

What is the Actual Level?

Answer 4

Includes the products quality, branding, packaging, USP

Question 5

What is the Augmented Level?

Answer 5

Includes added services or features such as an after-sales service, warranty, delivery

Question 6

What is Branding?

Answer 6

A brand is a name, symbol, or design for a product or service which attempts to make it unique.

Question 7

What is Product Differentiation?
(USP, adding value to the product)

Answer 7

Actual or perceived features of a product or service which a business uses to convince customers to buy its product or service instead of competitors.

Question 8

Advantage of Product Differentiation

Answer 8

The product focuses on what is different and better about it and therefore customers are willing to pay at a higher price.

Question 9

Disadvantage of Product Differentiation

Answer 9

Could add more to the design and production costs than customers are willing to pay.

Question 10

6 stages of the Product Life Cycle

Answer 10

-Development
-Introduction
-Growth
-Maturity
-Saturation
-Decline

Question 11

What are extension strategies?

Answer 11

An extension strategy is used in order to try and recover from costs by keeping the sales of the product as high as possible