chapter 17 product Flashcards
product
anything that satisfies a need or want
branding
differentiates between a company’s products from its rivals by name design and logo
adv of branding for businesses
differentiates products from rivals eg Kerrygold
opportunity to promote brand eg mcdonalds ads
command a higher price eg nike
consumer loyalty eg Kellogs
creates a dominant market place eg Apple and Samsung 75% of the Irish market
adv of branding for consumer
gives confidence in product eg iphones
provides an image eg BMW successful businesswoman
helps to judge a product eg French perfume😍
makes it easier to choose eg Adidas logo=good quality
own brand
products sold by retailers under the retailer’s own name and logo
Tesco and Tesco finest
adv of own brand for a business
attract budget conscious consumers higher profit margin- your own product repeat customers easily recognisable products competitive advantage- product exclusive to store
adv of own brand for consumers
increased choice
cheaper prices
good quality
product design
*linked to main clauses of the Sale of Goods and Supply of Services Act 1980
this puts a legislative onus on producers to manufacture goods that are of merchantable quality and fit for the purpose intended
product design should be
attractive- appealing to customers
working excellently
cost effective- affordable
factors to consider when designing a product
cost of production
production feasibility
needs of target market
legal requirements
products packaging functions
attracts the consumer offers protection provides information competitive advantage- sports cap for drinks convenience to consumer- diff sizes
product life cycle
*be able to draw
1 introduction 2 growth 3 maturity 4 saturation 5 decline
introduction
promotional campaign- create awareness
sales and profits are low
product not well known
heavy costs- deficit
growth
brand awareness increases
sales and profits increase
market share improves
surplus cash
maturity
product well known
r and d needs to take place for new products
sales and profits are very good
cash flow excellent
saturation
profits are stable
competitors enter market
advertising needs to increase
heavy costs
decline
sales and profits fall
competitors take over
product may be withdrawn
SP may be dropped
extending the product life cycle
product
introduce new design, flavours or diff packets/ containers
extending the product life cycle
price
change pricing strategy eg lower prices
extending the product life cycle place
find a new channel of distribution eg online
extending the product life cycle promotion
introduce a loyalty card or run a competition
