Marketing Mix - Product Flashcards
What is a product?
Anything capable of satisfying customer needs
What are the 2 types of product
Consumer product, industrial product
What is a consumer product?
b2c
convenience - low price, frequently bought
shopping - high price, less frequently bought
Specialty- unique, very high price, exclusive
What is an industrial product?
materials, capital items, supplies
what is a core benefit?
main benefit of the product
what is the tangible product?
features, design, quality
what is the augmented product?
pre-sale support, after-sale service, warranty
What are the 5 stages of the Product life cycle?
development, launch, growth, maturity, decline
Describe development
ideas, innovation
Describe launch
low sales, low capacity utilisation, high promotion
describe growth
rise in sales and CU, lowering unit costs and benefit of purchasing eos
describe maturity
high CU, slowing sales, strong cash flow
describe decline
low sales, market saturated, falling CU, may use extension strategies such as providing a new use or targeting a new segment
How might sales of a product change over time?
Fad sharp increase and decrease
Back in fashion initial peak, fall then rise
Seasonal year round fluctuations
What is the Boston Matrix?
matrix placing products based on market share and market growth
