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Business > 3.5.4 > Flashcards

3.5.4 Flashcards

1
Q

main features of a product

A

-reliability
-quality
-value for money
-design
-image

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2
Q

when developing a new product what must a business consider?

A

-design
-price
-expected sales
-cost of development of production

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3
Q

why is it important to produce new products?

A

-customers needs and wants evolve
-to add to their existing products or to replace them altogether
-it’s an investment that involves quite high risks, as many new products do not succeed

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4
Q

unique selling point

A

what makes a product special or different

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5
Q

what is the marketing mix?

A

to meet customers needs a business must develop products to satisfy them, change the right price, get the goods to the right place and it must make the existence of the product known through promotion

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6
Q

what are the features of the marketing mix?

A

-product: the features and appearances of the goods and services
-price: how much customers pay for a product
-promotion: how customers are informed about products
-place: the point where products are made available to customers

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7
Q

what factors influence the marketing mix?

A

-the product itself
-competitors products
-target customers
-business approach

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8
Q

what are the main factors to consider when designing a new product?

A

-materials
-price
-competitors
-target market

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9
Q

what is a brand?

A

a named product which:
-customers see as being different from other products
-is easily recognised
-builds its image through the use of a recognisable name, logo and packaging

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10
Q

branding

A

imagery a company uses to make us identify them and pick they out of the competition

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11
Q

advantages of branding

A

-increases loyalty
-can launch complimentary products in same brand name
-can charge higher prices
-successful bran names can be linked to the product e.g. hoover

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12
Q

disadvantages of branding

A

-could get a bad name if quality is not kept up
-cost of developing and establishing it
-can be copied

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13
Q

what are the stages of the product lifecycle?

A
  1. development
  2. introduction
  3. growth
  4. maturity
  5. decline
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14
Q

describe the stage development

A

-idea for a product is developed and tested
-during the development stage businesses spend money but have no money coming in

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15
Q

describe the stage introduction

A

-when the product is launched and the sales begin
-can involve a lot of expenditure on promotion

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16
Q

describe the stage growth

A

-when the product starts to sell faster
-may need to find more outlets for production
-people are beginning to buy more of it and it’s becoming more successful

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17
Q

describe the stage maturity

A

-sales rate begins to slow down
-a business should consider introducing some different versions of the product to keep sales up

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18
Q

describe the stage decline

A

-when sales start to fall
-need to make more difficult decisions at this stage
-should the product be taken off the market?
-should sales be boosted again by spending money on marketing?

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19
Q

extension strategy

A

techniques used to try to delay the decline stage of the product lifecycle

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20
Q

examples of extension strategies

A

-find new uses for the product
-change of name or packaging
-provide a USP

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21
Q

product portfolio

A

the products that a company produces

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22
Q

boston matrix

A

means of analysing the product portfolio and informing decision making about possible marketing strategies

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23
Q

what are the different components of the boston matrix?

A

-problem child
-stars
-dogs
-cash cows

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24
Q

describe stars

A

-products experiencing high growth rates and high market share
-potential for revenue growth

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25
Q

describe cash cows

A

-products experiencing high market share but low market growth
-low costs, high cash revenue–> positive cash flow

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26
Q

describe dogs

A

-products experiencing low market share and low market growth
-associated with negative cash flow

27
Q

describe problem child

A

-products experiencing a low market share in a high growth market
-need money spent to develop them

28
Q

advantage of the boston matrix

A

useful tool for analysing product portfolio decisions

29
Q

disadvantages of the boston matrix

A

-only a snapshot of the current position
-does not take account of environmental factors
-product lifecycle varies

30
Q

what are the different pricing methods?

A

-cost plus pricing
-price skimming
-price penetration
-competitive pricing
-loss leader

31
Q

cost plus pricing

A

this means that they calculate the cost of providing the product and add a percentage to this to decide the price

32
Q

price skimming

A

setting a high price for a product when it first enters the market

33
Q

price penetration

A

setting a low price to achieve fast sales

34
Q

competitive pricing

A

prices that match competitors

35
Q

loss leaders

A

products sold at loss in the hope that the customer will buy other items that will make a profit

36
Q

factors affecting price

A

-cost
-demand
-nature of the market
-competitors pricing

37
Q

promotion

A

ways of communicating about the business and its products

38
Q

reasons that businesses use promotion

A

-inform customers about the business
-try to persuade customers to buy a product
-increase sales

39
Q

factors influencing the promotional mix

A

-finance
-target audience
-competitors actions
-nature of the market

40
Q

methods of promotion

A

-advertising
-sales promotions
-public relations
-personal selling

41
Q

examples of advertising

A

-newspapers
-magazines
-billboards

42
Q

advantage of advertising

A

effectively spreads your business

43
Q

disadvantage of advertising

A

have to pay

44
Q

examples of sales promotions

A

-discounts
-buy one get one free
-coupons

45
Q

advantage of sales promotions

A

encourages customers to buy your product

46
Q

disadvantage of sales promotion

A

could lose profit

47
Q

examples of public relations

A

-big shows to gain media coverage
-controversial things to gain media coverage

48
Q

advantage of public relations

A

free media coverage

49
Q

disadvantage of public relations

A

can not control what will be said by the media

50
Q

example of personal selling

A

sales force to help promote products

51
Q

advantage of personal selling

A

they are informed about new offers and new products

52
Q

disadvantage of personal selling

A

have to employ a sales force

53
Q

distribution channel

A

how the ownership of a product passes from the producer to the final customer

54
Q

wholesaler

A

they buy in large quantities from a producer and sell to retailers

55
Q

retailers

A

shops that sell direct to the customer

56
Q

intermediary

A

a link in the distribution chain between the producer and the customer

57
Q

tradition channel of distribution

A

manufacturer –> wholesaler –> retailer –> consumer

58
Q

modern channel of distribution

A

manufacturer –> retailer –> consumer

59
Q

direct channel of distribution

A

manufacturer –> consumer

60
Q

factors to take into consideration when choosing a channel of distribution

A

-costs
-lack of control
-the product

61
Q

e-commerce

A

the act of buying/selling a product using an electronic system such as the internet

62
Q

m-commerce

A

the buying/selling of products through wireless handheld devices such as smartphones

63
Q

advantages of e-commerce

A

-customers can order any time
-customers can order from home
-more variety of products

64
Q

disadvantages of e-commerce

A

-need to be able to distribute wider range of destinations
-worldwide competition
-problems of delivering goods and accepting returns

Business (32 decks)

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