2.2.1 Product Flashcards
What is the Design Mix?
Function, Costs, Aesthetics
Function
What the product should do and how well it does it
Costs
How cost-effective the product will be to manufacture
Aesthetics
How the product appeals to consumers
Phases of the Product Lifestyle
Introduction, Growth, Maturity, Decline
Introduction in Product Lifestyle
The product is launched, so sales may be low as only a few customers know the product exists
Growth in Product Lifestyle
As more customers become aware of the product, sales increase rapidly, especially if customers like it
Maturity in Product Lifestyle
Sales reach their peak during this phase as the product becomes established. It may become a regular purchase for people who like it
Decline in Product Lifestyle
Sales fall during this phase as the product loses popularity and customers look for alternatives. When it is unprofitable, the product is withdrawn
How long the product lifecycle depends on
How dynamic the market is
How strong the brand image behind the product is
Extension strategies of the product lifecycle
Product differentiation
Reducing the price of the product
Rebranding the product
Repositioning the product
Increasing marketing activity
Product Differentiation
Making a product stand out from market competitors’. A USP is essential for product differentiation
Reducing the price
When a product is becoming less popular lowering the price should mean the product continues selling due to the lower price
Rebranding the product
Refreshing the design of the product can appeal to new customers to continue sales
Repositioning the product
Exploring new markets for a product. A product can be revived by finding new uses for a product
Increasing market activity
New advertising or promotions can attract new customers or remind previous customers that a product still exists.
