2.2 Flashcards
Aesthetics
How things appeal to the senses; do they look great, smell good, feel nice, sound solid (the ‘ker-lunk’ of a BMW door shutting) and taste great?
Economic manufacture
Making the product cheaply enough to make it profitable.
Extension strategy
An attempt to prolong sales of a product for the medium to long term, to prevent it from entering its decline stage.
Function
How well the product or service works for the customer; for example, are the beds are comfortable at a hotel; do the smartphones take sharp photos?
Product differentiation
The extent to which consumers see your product as being distinct from its rivals.
Product life cycle
The theory that every product goes through the same four stages of
introduction, growth, maturity and decline.
Profit margins
Profit as a percentage of the selling price (one unit) or as a percentage of total sales revenue (for the business as a whole).
Branding
Giving your product or service a name that helps recall and recognition, and gives a sense of personality.
E-newsletters
Regular updates on the activities of a business sent electronically to actual or potential customers.
Promotional strategy
A medium- to long-term plan for communicating with your target customers.
Sponsorship
When companies pay to have a brand associated with an iconic individual or event.
Viral advertising
When people start to spread your message for you through social means, be it word of mouth or via social media.
Distribution
How ownership changes as a product goes from producer to consumer.
E-tailer
An electronic retailer; in other words purchasing electronically, either by e-commerce or, more likely these days, mobile commerce (m-commerce).
Retailer
A shop or chain of shops, usually selling from a building in a high street or shopping centre.
