Marketing (product) Flashcards
Define product
The goods and services that the firm provides
What is product portfolio analysis
Looking at the range of products and brands that a firm has under its control
What does product portfolio analysis help identify
Where every single one of a businesses products is positioned in the market
What is branding
A promotional method involving the creation of an identity for the business that distinguishes that firm and its products from others
What is corporate branding
Attaching a perception and promise to the goods or services associated with that brand
What are the other two types of branding
Personal and geographical
Define unique selling point
Creating a feature or characteristic within a product or brand that makes it stand out
What is product differentiation
Making a product stand out from those of competitors
Why is having the right product important to a business
Sufficient demand, ability to meet customer needs, correct brand image, USP
Why is having the right product important for customers
Satisfy needs and safe and fit for purpose
Why is having the right product important for employees
skills to make the product or service, crucial to business survival and therefor job security
Why is having the right product important for investors
Sufficient sales to achieve return on investment, good reputation
What is a product life cycle
A technique used to track the stages a product goes through during its life
What does a product life cycle track
Sales over time from the development stage of a product through launch until its removed from the market
What are the 6 stages of the product life cycle
Development, introduction, growth, maturity, decline and extension strategies
Explain the development stage
Negative cashflow due to market research and R&D, no sales revenue before launch
Explain the introduction stage
Production and promotion costs are high
Explain the growth stage
Sales revenue increases but as more units are sold production costs also increase, there are economies of scale
Explain the maturity stage
Sales stabilise and the product acts as a cash cow
Explain the decline stage
At some point the product will start to loose sales
Explain extension strategies
Many products are adapted and given a new lease of life
What are the types of extension strategies
Changing the product and increasing promotion or changing promotion strategy
Why do businesses use extension strategies
Sales revenue is generated for a longer time, products are kept up to date and modernised, ability to respond to trends, cheaper and lower risk than new development, however, the product may have peaked and need to be removed from the market
What is the Boston matrix
A technique used to analyse a businesses product portfolio that considers each product within the portfolio in relation to its market share and rate of market growth
What is the market share and growth of a rising star
High and high
What is the market share and growth of a problem child
Low market share and high market growth
What is the market share and growth of a cash cow
High market share and low market growth
What is the market share and growth of a dog
Low market share and low market growth
Describe cash cows
Established products who make a lot of profit, this is used to finance rising stars, firms want as many cash cows as possible, less spent on advertising because competition is low
Describe rising stars
Enjoy increasing sales revenue, fierce competition, heavy promotional spending, funded by cash cows, hope they become cash cows but many become dogs
Describe problem children
Have potential in a growing market, the firm needs to decide whether to discontinue or continue it, requires a lot of marketing for little reward
Describe dogs
Unlikely to be kept on, very little scope for future profits however they can be profitable for the mean time, they do not get much attention
