Chapter 11 Part 2 Flashcards
durable goods
high cost items and white goods which don’t tend to wear out quickly and may be expensive. the buying decision is affected by changing technology, fashions or the old item wearing out
FMCG (fast moving consumer goods)
goods which are sold at a relatively low price and in large quantities
concept screening`
part of developing new products to meet changing customer needs - narrowing a range of ideas into a more manageable set to take further with testing and development. the firm needs to decide on a set of criteria and ranking, and also benchmark against competitors
product item
the individual product
product line
the collection of product items that are closely related
product mix
the total range of product lines that a company has to offer
product mix width
the number of product lines
product mix depth
the number of product items within each product line
business portfolio
the collection of business and products that make up the company designed to fir the company’s strengths and exploit the most attractive opportunities
product life cycle decline
demand falls as the existence of substitute products and changing tastes means that the product becomes either niche or obsolete
product life cycle maturity
the longest stage in the life cycle of most successful products. demand reaches its limit and the organisation must manipulate the marketing mix in order to sustain its possible
product life cycle growth
competition increases and demand grows, products and their features will develop and prices will tend to fall as brand loyalty increases.
shakeout stage
part of growth - sales growth begins to drop, the market is saturated by providers and the weakest providers are shaken out.
product life cycle introduction
the launch will generally have little initial demand - marketing aimed at informing customers of its existence and benefits
brand extension
the use of a successful brand to launch a new or modified product in a related, similar market
