Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Higher Business > Market Mix - Product > Flashcards

Market Mix - Product Flashcards

1
Q

what are the seven P’s?

A
  • Product
  • People
  • Promotion
  • Place
  • Price
  • Process
  • Physical evidence
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

why must marketing mixed be used?

A

Every product must be marketed correctly in order for the product to be successful. In order for the correct marketing to happen, the marketing mix must be used.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

what does market mix ensure?

A

The right product is sold in the right place at the right price using the right promotions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

how does business make sure that they make available the right product to consumers?

A

This is done through carrying out market research to find out what consumers want

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is the process of ensuring that the right product is made?

A

Usually a prototype is made, consumers test it, feedback is given, changes are made and the final version is released for sale.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

instead of releasing a brand new product what do some companies do?

A

instead of releasing a brand new product, a business will just adapt an existing one to prolong its lifespan.
extension strategies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

what is a product also concerned with?

A

Product is also concerned with how the product looks – packaging, image of the product and the after sales care provided.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what are the extension strategies?

A
  • Change in price
  • Add new features
  • New advertisements and marketing campaigns
  • Change the packaging
  • Improve the product
  • Target new markets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

what should extension strategies lead to?

A

Using these should lead to increase sales and less competition.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what does product portfolio refer to?

A

This refers to the different products an organisation may choose to sell.
This means businesses sell more than one product.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what is product portfolio?

A

This is the range of different products a business sells, usually under the SAME brand name.
A product portfolio is the sum of all the various product lines an organisation produces.
However, the business could also decide to move into very different product ranges

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

what is product line portfolios?

A

product line is a group of products that are closely related

Different products within a product line will appeal to different market segments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

what is diversified product portfolio?

A

where a business sells a mix of unrelated products.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

some business have both what?

A

both a product line AND diversified product line

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

what are the advantages of having a product portfolio?

A
  • To spread the risk of failure – if sales of one product decline, others could be growing.
  • The chances of success with a new product are enhanced because of loyal customers will be happy to try.
  • Appealing to more than one customer segment should increase customer sales.
  • To cope with products which have seasonal demand
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

what are the disadvantages of having a product portfolio?

A
  • Cost of promoting and advertising lots of different products to different segments will be expensive.
  • If one product receives a bad reputation, this can have an impact on the rest of the portfolio.
  • R&D costs can be high to maintain the success of a variety of products.
  • Staff may require training on the different products which is time-consuming and expensive.
17
Q

what is product life cycle?

A

product life cycle shows the different stages of a new product passes through over time and sales that are expected at each stage.

18
Q

what is the development stage?

A

Several market research activities are carried out to check if the product has demand.
High costs, zero sales, loss

19
Q

what is the introduction stage?

A

The product is launched onto the market but normally sales are low due to competition and lack of awareness from the public.
Sales are low so business will have high advertising and promotion expenses to ensure customers become aware of the new product. As a result, profit is low.

20
Q

what is the growth stage?

A

Sales rise sharply as awareness increases.
This is the first stage were the company starts making a profit.
At this stage, competitors may start to release their own version of the same product.

21
Q

what is the maturity stage?

A

Sales reach their peak then begin to slow.
Competition increases and so, prices significantly drop.
Profit is at its most profitable.
(This profit can be used to fund development of new products)

22
Q

what is the saturation point?

A

The end of the maturity stage
Too many competitors
People are no longer demanding the product.
High profits but sales start to decrease.

23
Q

what is the decline stage?

A

Sales begin to fall, and the product begins a slow death as trends change and technology develops.
Profits begin to fall due to falling demand, lower prices and advanced products are released.
Eventually the product is withdrawn from the market.

24
Q

what is the life span of a product?

A

length of a product’s life cycle depends on the product.

25
Q

what is a brand?

A

brand is a product or service which is identified by a specific name or symbol.

26
Q

once a brand has been established what happens?

A

companies must work hard to maintain the high quality.

27
Q

how is the image of a brand created?

A

age is created through advertising. Brands cost a lot of money to build up but are beneficial.

28
Q

what are brands often associated with?

A

Brand is often associated with delivering a high-quality product.

29
Q

what can branding also be used for?

A

to promote cheaper products or budget services

30
Q

what are the advantages of branding?

A
  • Encourages repeat purchase: brand loyalty
  • Stands out from competition as the brand is a unique selling point. (USP)
  • Branding gives the company a good reputation and image.
  • Can change a higher price as products are seen to be of a higher quality.
31
Q

what are the disadvantages of branding?

A
  • Reputation could be ruined if something happens to one product.
  • Expensive advertising campaigns are needed.
  • Fake versions can appear on the market – bad quality can have an effect on the ‘real’ products.
32
Q

what is the Boston matrix used for?

A

Boston matrix is often used to plot the range of products a business has, to identify what products need changed or introduced.

33
Q

The Boston Box (matrix) categorised products into four different areas, based on what?

A
  • Market share - % of sales in the market the product makes.
  • Market growth – overall potential sales that the market as a whole.
    This is used to analyse a company’s product portfolio.
34
Q

Boston matrix

stars

A

High market growth
high market share

  • Needs constant marketing investments to keep ahead of competition.
  • Can become market leader
  • Stars can eventually become cash cows or question marks.
35
Q

Boston matrix

cash cows

A

Low market growth
High market share

  • Require little marketing due to lack of competition, customers usually already know the product as it has been on the market a while.
  • Funds from cash cows bring in a steady income.
  • May help to improve riskier ventures like question marks.
36
Q

Boston matrix

question marks

A

High market growth
Low market search

  • Can be invested in due to their position in a promising market.
  • A strong marketing mix can help to turn these into stars.
37
Q

Boston matrix

dogs

A

Low market growth
Low market share

  • Can adversely affect profits
  • Declining market for the product
38
Q

what are the advantages of the Boston matrix?

A
  • It is simple and easy to understand.
  • It helps to identify which products should be retained.
  • It helps to identify which products should be withdrawn.
39
Q

what are the disadvantages of the Boston matrix?

A
  • It only provides a snapshot of current position.
  • It does not consider external factors.
  • High market share does not always mean high profits made.

Higher Business (44 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions