2.4 Marketing Mix- Product Flashcards
Product (2p)
- Thing the business is selling
- Can be tangible or non-tangible
Things to think about with a product: (5p)
- Design
- Quality
- Value
- Branding
- Convenience
Branding
- Giving a product or service an identity
Types of protection in a business (3p)
Trademark (TM)
Copywrite
Patenting
Patenting
a right granted for an invention that is new and useful.
Trademark
any word, phrase, symbol, design, or a combination of these things that identifies your goods or services
Eg. McDonald’s yellow M
Copywrite
protects a creator’s original work from being used or duplicated without their permission
Benefits of branding (4p)
- You can chatge a higher price as the brand is associated with quality
- Likely to get cutomer loyalty
- Brands can be recognised anywhere around the world, so it will widen your customer base
- Branding attracts investment from external partners eg.Shareholders
Product life cycle
the length of time from when a product is introduced to the market until it’s taken off shelves
Steps of product life cycle (6p)
- Conception stage
- Introduction
- Growth
- Maturity
- Extension strategy
- Decline
1) Conception stage (3p)
- Research and development (R&D)
- Trial and error stage
- Most expensive stage
2) Introduction (2p)
- First appearance in shops
- Lower pricing
3) Growth
Repeat customers buy product
4) Maturity (4p)
- cash cows
- Maximum sales
- no more growth
- income used to pay for R&D
Cash cows
- Most mature products making the most money
Extension strategy (Optional part of lifecycle) (2p)
- extension of maturity
- updating or differentiating product
5) Decline (2p)
- Product no longer fashionable/in season
- New entrances unto the market
Saturated
Maximised sales
Why is it important to have a ‘spread’ out of products throught the cycle? (2p)
- New products always available for customers
- Products in maturity fund R&D
Why are mature products important?
- Fund R&D
- They have the potential to extend their life and bring in even more revenue
What should a business do with a product in decline? (3p)
- Use promotional pricing to gain profit and get rid of product before discontinuing it (when product isn’t making a profit)
- Adapt product to suit customers
- Some products don’t have many sales but have a specific target market with consistent wealthy customers
Options for products with a saturated market (2p)
- Extension strategy
- Introduce new products
