Marketing Flashcards
Define product life cycle
The life cycle of a product showing the stages of development that the product will experience
What are the aesthetics of a product in marketing mix
- looks of the product
- how it feels
- how it smells
- how comfortable it is
- is it attractive
What are the costs of a product in marketing mix
- reasonable price to charge customers?
- can it be produced at a good cost?
- can prices be changed?
What is the function in marketing mix
- what does it do?
- is it practical?
- any additional features (unique selling points?)
Name the stages of development in order
1) research and development
2) introduction
3) growth
4) maturity
5) decline / extension strategy
Define obsolete
No longer sold or bought
Define the research and development stage
Investment in scientific research and technological development to make a new product, this is heavily invested in
Define the introduction stage
Product is launched, advertising and promotion is started and profit is low at this stage
Define the growth stage
Customers become familiar with the product and repeat custom is built, brand awareness and promotion increases, costs for research and development are begun to be re payed
Define the maturity stage
Sales peak, competition becomes stronger, businesses commonly spend less on promotion, a business wants to maintain this stage for as long as possible.
Define the decline / extension strategy stage
- decline : Products sales decrease, business decides whether to use extension strategies or to make the product obsolete.
- extension strategy : ways of making the product better in order to re increase sales
Examples of extension strategies
- updates
- adding features
- change in target market
- advertising increasing
- price reduction
- following new trends
- increasing quality
Examples of business opportunities
The opportunity to:
- open a business -expand - get sponsored
- sell a new product -merge -business takeover
- enter a new market -become global
