Marketing Mix - Product Flashcards
What are the five parts of a product?
- Specifications and materials
- Packaging
- Functions
- Design
- Options and accessories (range)
What is a brand?
A product with unique character
What are the advantages of having a strong brand?
- Increased customer loyalty and repeat sales
- Can charge higher prices
- More demand from retailers
What is the product life cycle?
A theoretical model which describes the stages a product goes through
What are the five stages of the product life cycle?
1) Research and development
2) Introduction
3) Growth
4) Maturity
5) Decline
State one possible strategy a business could undertake in the growth stage in order to boost sales
- Advertising to generate brand awareness
- Increase in distribution outlets
- Improve the product
State one possible strategy a business could undertake in the maturity stage in order to keep sales high
- Product differentiation
- Attract new users
- Persuasive advertising
Outline three possible reasons why a product may enter the decline stage
- Changes in consumer tastes and behaviour
- Increased competition
- Damaging publicity
- Technological advance
State one possible strategy a business could undertake in order to reduce the rate of decline
- Increase in promotion
- Focus on profitable segments
- Reduce prices
- Change distribution channels
- Product improvement
When is the product life cycle short?
- The rate of technological change is rapid
- There is high innovation in the market
- Customer tastes change rapidly
- The product is badly marketed
What is a product portfolio?
The mix of products offered by a single firm
What is the Boston Matrix?
A business tool used to measure the product portfolio of businesses
What are the four areas of the Boston Matrix and what do they mean?
- Star (high market share, high market growth)
- Question marks (low market share, high market growth)
- Cash cows (high market share, low market growth)
- Dogs (low market share, low market growth)
What is a balanced portfolio?
When a business has products in all areas of the Boston Matrix
