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It helps replace outdated products and gain a competitive edge.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.
