Marketing - Product

Question 1

Explain the maturity and decline stages of the PLC

PLC = product life cycle

Answer 1

MATURITY– Sales are at their peak. Advertising is reduced as the product is now recognisable.

DECLINE– Sales begin to fall as new products hit the market

Question 2

Explain the introduction and growth stages of the PLC

PLC = product life cycle

Answer 2

INTRODUCTION– Product is launched to the market. Advertising costs are high for the product to get noticed.

GROWTH– Sales are rising, advertising costs are still high. A profit may be made, if all research, development and advertising costs have been made back.

Question 3

Describe the product life and list the stages of the cycle

Answer 3

• the amount of time a product goes from being introduced into the market until it’s taken off the shelves

stages
- introduction
- growth
- maturity
- decline

Question 4

Provide 3 ways a business could use to extend the PLC

PLC = product life cycle

Answer 4

• Revamp the product
• Reduce the price
• Use different promotion techniques

Question 5

• What is branding?
• Describe 2 advantages and disadvantages of branding

Answer 5

A name, symbol or design a producer uses to make a product recognisable.

ADVANTAGES
* Higher price can be charged → increases profits
* Creates customer loyalty → increases sales
* Customers will recognise them →
Easier to launch new products

DISADVANTAGES
* High initial costs → expensive
* One product can affect the whole brand image
* Fakes can appear expensive to fight

Question 6

• What is the purpose of packaging?
• Give one advantage and disadvantage of packaging

Answer 6

• To provide customer appeal and protection during transportation
• It must be kept at a minimum, recyclable, reusable and biodegradeable

ADVANTAGES
* Protects the product

DISADVANTAGES
* Fakes can appear expensive to fight

Question 7

What is a product?

Answer 7

• Good or service sold to customers or other businesses.
• This includes the after-sales service and packaging.

Question 8

Name and describe the 5 stages of Product development

Answer 8

1. Idea Generation - Research and Development departments try to design products that are new/better than current ones.
2. Development - Businesses aim to have an innovation in their new product that they can use as a USP.
3. Prototype and Testing - Prototypes are made then undergo tests to ensure the product is fit for purpose and safe
4. Modifications - After seeing the prototype, changes can be made to improve the product
5. Launch to market - Production begins and a marketing and advertising campaign is launched to introduce and sell the product.