Marketing Mix: Product Flashcards
What is a product?
The end result of the production process sold on the market to satisfy a customer wants and needs.
Types of Products
Consumer Goods, Industrial Goods, Capital Goods
What are Consumer Goods?
Goods that is consumed by people and bought for their own satisfaction.
What are Industrial Goods?
Goods that are produced for other business to use.
What are Capital Goods?
Goods used by industries in their production.
What is a brand?
A brand is a distinguishing name or symbol that differentiates the product from competitors.
What is Brand Loyalty?
When a customer repeatedly buy products from the same brand despite other competitors offering similar products/services.
What is Brand Image?
An image or identity that is formed by the customer’s perception of the brand based on their interactions.
What are the important elements in the development of products?
Quality, Durability, Performance, Appearance
What does a Product Life Cycle do?
Shows the different stages a product will pass through.
_______ may be used as the basis of change from one stage to another.
Sales
What are the 5 stages of the PLC?
Development, Introduction, Growth, Maturity, Decline.
What happens in the Development Stage in PLC?
Market Research, Generating ideas, Screening ideas, Creating Prototype, Test Marketing, Commercialisation
What happens in the Introduction Stage in PLC?
When the product is first launched into the market.
What happens in the Growth Stage in PLC?
Product made it’s place in the market
Starts gaining traction
Sales begin to increase
Consumers are interested in the product.
______ is important in Growth Stage to convince customer to buy more product and establish _______.
Advertising, Brand Loyalty
What happens to the Price in the Growth Stage in the PLC?
Product that has an initially low price will slightly increase price to maximise profit.
Product that has a initially high price will slightly lower the price to gain customer from competitors.
What happens in the Maturity Stage in PLC? (3)
- Peak of the product sales and sales will stabilise.
- Promotional Pricing Strategy will be implemented to keep competitors at bay.
- Plan for new product or introduce extension strategy.
What happens in the Decline Stage in PLC?
Sales will begin to dwindle -> Loss of revenue, market shares, and profitability.
What can a business do when it is in a Decline Stage?
Discontinue their product or update their product to match competitors.
How can a business prolong the maturity stage of product?
- Introduce new variants of original product.
- Introduce new and improved of old product.
- Sell into new market.
- Use new advertising campaign
- Sell through new retail outlets
- Make small changes to the design
