Chapter 36: Product (Version) Flashcards
Product Life Cycle, Boston Matrix, Marketing Mix
What does a good marketing strategy aim to meet?
It aims to meet customers’ needs.
What are the four elements of the marketing mix?
Product, Price, Promotion, and Place.
Why is product development important for businesses?
It helps replace outdated products and gain a competitive edge.
What are some sources for generating ideas for new products?
Business owners, customers, competitors, staff, and research and development.
What factors are analyzed during the analysis stage of product development?
Marketability, technical feasibility, portfolio fit, and legal compliance.
What happens during the development stage of product creation?
Experiments, simulations, model building, sample production, and initial testing occur.
What is test marketing?
Testing the product in a small section of the market to gather consumer feedback.
What is commercialisation in the product development process?
Finalizing the product and launching it with a marketing strategy.
What are goods and services in business terminology?
Goods are tangible products, services are intangible offerings
Why is packaging important for products?
It influences consumer perceptions and helps products stand out against rivals.
Stages of product life cycle
Development, Introduction, Growth, Maturity, and Decline.
What are some pricing strategies during the introduction stage?
Skimming (high price) or penetration pricing (low price).
What are extension strategies in product marketing?
Methods & strategies to lengthen a product’s life cycle, such as finding new markets, modifying products, or changing packaging.
What is the Boston Matrix?
A 2x2 grid that categorizes products based on market share and growth potential into Stars, Cash Cows, Question Marks, and Dogs.
What are ‘Stars’ in the Boston Matrix?
Products with high market share and growth potential, likely to be profitable.
What are ‘Cash Cows’ in the Boston Matrix?
Mature products with high market share but low market growth, generating steady income.
What are ‘Question Marks’ in the Boston Matrix?
Products with low market share in a growing market, having potential if marketed correctly.
What are ‘Dogs’ in the Boston Matrix?
Products with low market share in a non-growing market, often replaced by new products.
Why do businesses use the Boston Matrix?
To analyze their products and ensure the right balance between Stars, Cash Cows, Question Marks, and Dogs.
Marketing mix
Elements of a firm’s marketing that are designed to meet the needs of customers (4Ps)
Product life cycle
Level of sales at the different stages through which a product passes over time
Skimming
Setting a high price initially and then lowering it later
Penetartion pricing
Setting a low price to start with in order to get established in the market. Price may be raised once established
Product portfolio
The range of products a business has currently available on the market.
Factors influencing choice of packaging
Protection, Environment, Design, Cost- effective, Convenience, Information
