2.2.1 Product

Question 1

What can a product be?

Answer 1

Good or service

Question 2

How does a business achieve a successful product design?

Answer 2

Design mix
(Function, appearance and cost)

Question 3

What does the product life cycle include?

Answer 3

Introduction
Growth
Maturity
Decline

Question 4

What are the characteristics of the introduction phase?

Answer 4

Costs are high due to research, design and development
Sales will be low
Businesses spend money on promotion
No profit will be made

Question 5

What are the characteristics of the growth phase?

Answer 5

Sales grow with demand and the business may start to make a profit

Question 6

What are the characteristics of the maturity phase?

Answer 6

Growth of sales may slow down due to other businesses joining the market
Profit may be high but start to reduce

Question 7

What are the characteristics of the decline phase?

Answer 7

Sales and profits fall and a business may have to consider if they want to continue selling the product

Question 8

How will a business try to prevent a product going into the decline phase?

Answer 8

Extension strategies = making changes to the product or by appealing to a new segment of the market

Question 9

How can product differentiation be created?

Answer 9

Brand image
Unique selling points
Offering a better location, features, function, design appearance
Cheaper selling price
Quality
Customer service
Product range