Marketing Flashcards
What is a product portfolio?
The range of products a company offers
What is the difference between product mix and range
A product mix is a variety of varying products eg Virgin
A product range is a variety of similar products eg Coke Zero
What is a brand and own brand
Brand- The name given to a product
Own Brand- Products which have the label of the shop that sells them
Why does a larger business often widen their portfolio?
Larger businesses often widen their portfolios to branch out into different markets and to increase their brand recognition
Negatives of widening a portfolio
Not all products will sell
The target audience may be smaller
All ideas don’t go into further improving stars
What is the product life cycle
The product life cycle is the different stages a product goes through
Why is the product life cycle useful
Because it can be used to identify where a product sits and then help with strategising to ensure maximum profit
What is an extension strategy
An extension strategy is a plan made by a business to extend the life cycle of a product
What are the negatives of the product life cycle
Unreliability- If a product hit a dip in sales during growth it may be falsely identified as reaching maturity
What is a price
The value placed on a product
Factors that influence price
Cost of production Competition Brand Demand Quality Location Supply Target audience Stage in the product life cycle
What are the 6 pricing strategies
Skimming Penetration Cost plus BOGOF Competitive Loss leader
What is advertising
Communication using the media to create interest
What is sales promotion
Activities to attract customers attention to a product
What is direct marketing
Using direct means to contact customers to increase sales
