5.5 Using the Marketing Mix: Product & Pricing

Question 1

Product portfolio

Answer 1

The collection of products that a firm produces

Question 2

Boston Matrix

Answer 2

A way of analysing a product’s share and growth in their market

Question 3

Dog

Answer 3

Low market share in a low growth market

Question 4

Cash cow

Answer 4

High market share in a low growth market

Question 5

Question mark

Answer 5

Low market share in a fast growth market

Question 6

Star

Answer 6

High market share in a fast growth market

Question 7

Product life cycle

Answer 7

How the sales of a product may change over time

Question 8

Extension strategies

Answer 8

Attempts to maintain the sales of a product and prevent it from entering the decline stage of the life cycle.

Question 9

Price skimming

Answer 9

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

Question 10

Penetration pricing

Answer 10

Launching a new product at a low price to achieve fast sales

Question 11

Competitive pricing

Answer 11

Matching the prices that competitors charge

Question 12

Loss leader

Answer 12

A product sold at a loss in the hopes that the customer will buy other products from the business where they make a profit

Question 13

Cost plus pricing

Answer 13

Where products are priced by covering the cost of it to the retailer and adding a percentage on top.