4.5 (the four Ps) Product

Question 1

Product life cycle

Answer 1

Product life cycle (PLC) shows the different stages a product is likely to go through from its initial design and launch to its decline. Its life cycle is measured over time in terms of sales revenue. The use of PLC allows managers to idenfiy any necessary changes and to take apporpoate action as part of an improved marketing strategy

Some PLC such as (Famous orange juice brand from 1860) have a very long life ccye. WHile technology often has a short one

There are generally 5 stages to a products life cycle
1) research and development
2) Launch (Introduction)
3) Growth
4) Maturity
5) Decline

1) R&D of a product life cycle involves designing and testing the product, this tends to be time consuming. Example include protptye, and test marketing (to make sure it meet consumer neds)

2) Launch stage of a plc require careful marekti ng planning. Sales will be releavely low as customers are not fully aware of the products existence, however costs are very high due to the expense involved in the launch

3) Grow stage of a plc sees sales revenue increasing, more consumers are aware of the product and its purpose

4) Maturity stage, sales revenue continue to rise but at a much slower rate. Saturation occurs when there are too many competitions in the market and sales have peaked or have started to fall

5) Decline stage, sales and profit of the product and cash flow is less favorable. This could be due to lower customer demand, change in market, new replacment

Question 2

A product portfolio

Answer 2

A product portfolio is the menu of goods or services that a firm produces and offers for sale

Question 3

Branding

Answer 3

Branding is a form of differenting an organizations products from its compeitiors. A brand refers to a name that is identifiable with a product of a particular business

Branding refers to a unique name or identity for a business

Branding is important because
brand is a legal instrument. Brand names create a legal idenfiy for a product

Branding is a risk reducer, brand give new product a better chance of surivial

Branding is an image enhancer, successful brands allow a business to charge a premium price

Branding is a revenue earner, branding also enrouges brand loyalty

ADvantges of sucessufll branding:
Price adnvatge, reconingiton and loyalty
Distrubtuion - retail space is limited so vendors only stock the best selling brand

Question 4

Brand awarness and brand loyalty, brand value

Answer 4

Brand awarness measures the extent to which potinea; customers or the public recognise a particular brand

Brand loyalty occurs when customers buy the same brand of a product time and time again, they are devoted to the brand since they have b rand preference over other brand names

Brand value: refers to the premium that customers are willing to pay for. abrand name and above the value eo the product itself

Question 5

Packaging

Answer 5

Packaging refers to the ways in which a product is presented to the consumer

Question 6

Place (distrubution)

Answer 6

Place refers to the disubtrion of product i.e how products get from the producder to consumer

Question 7

Channel of distrubtution

Answer 7

Refers to the means used to get a product to the consumer

i
s the method a company uses to get a product or service into the hands of a consumer as quickly and efficiently as possible.

Question 8

Distributors and agents

Answer 8

A distributor is one who distributes(spreads) the goods, products and/or services to the respective people, which may include any one, the retailer, supplier, etc. In business, a distributor acts as an ‘an entity that buys products, warehouses them, and resells them to retailers or directly to the end users or customers’.

Agents are paid commission based on an agreed percentage. In contrast, a distributor sells the product direct to the customers, adding on a margin to cover costs and profits.

Question 9

Retailers

Answer 9

Retailers are the sellers of products to the final consumer

Question 10

Distriubtors vs Distriubtion, wholesalers

Answer 10

Distrubtuors are indpedenat business that act as intermediaries by speciliasing in the rtrade of product made by certain manufactuers

The supplier (typically a manufacturer, packager or processor) provides the products to the distributor, who has a direct relationship with the supplier. Then, the wholesaler buys large quantities of products from the distributor and sells them to retailers.

retailers sell to consumers, wholesalers sell to retailers, and distributors sell to wholesalers.