Marketing (product)

Question 1

Define product

Answer 1

The goods and services that the firm provides

Question 2

What is product portfolio analysis

Answer 2

Looking at the range of products and brands that a firm has under its control

Question 3

What does product portfolio analysis help identify

Answer 3

Where every single one of a businesses products is positioned in the market

Question 4

What is branding

Answer 4

A promotional method involving the creation of an identity for the business that distinguishes that firm and its products from others

Question 5

What is corporate branding

Answer 5

Attaching a perception and promise to the goods or services associated with that brand

Question 6

What are the other two types of branding

Answer 6

Personal and geographical

Question 7

Define unique selling point

Answer 7

Creating a feature or characteristic within a product or brand that makes it stand out

Question 8

What is product differentiation

Answer 8

Making a product stand out from those of competitors

Question 9

Why is having the right product important to a business

Answer 9

Sufficient demand, ability to meet customer needs, correct brand image, USP

Question 10

Why is having the right product important for customers

Answer 10

Satisfy needs and safe and fit for purpose

Question 11

Why is having the right product important for employees

Answer 11

skills to make the product or service, crucial to business survival and therefor job security

Question 12

Why is having the right product important for investors

Answer 12

Sufficient sales to achieve return on investment, good reputation

Question 13

What is a product life cycle

Answer 13

A technique used to track the stages a product goes through during its life

Question 14

What does a product life cycle track

Answer 14

Sales over time from the development stage of a product through launch until its removed from the market

Question 15

What are the 6 stages of the product life cycle

Answer 15

Development, introduction, growth, maturity, decline and extension strategies

Question 16

Explain the development stage

Answer 16

Negative cashflow due to market research and R&D, no sales revenue before launch

Question 17

Explain the introduction stage

Answer 17

Production and promotion costs are high

Question 18

Explain the growth stage

Answer 18

Sales revenue increases but as more units are sold production costs also increase, there are economies of scale

Question 19

Explain the maturity stage

Answer 19

Sales stabilise and the product acts as a cash cow

Question 20

Explain the decline stage

Answer 20

At some point the product will start to loose sales

Question 21

Explain extension strategies

Answer 21

Many products are adapted and given a new lease of life

Question 22

What are the types of extension strategies

Answer 22

Changing the product and increasing promotion or changing promotion strategy

Question 23

Why do businesses use extension strategies

Answer 23

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

Question 24

What is the Boston matrix

Answer 24

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

Question 25

What is the market share and growth of a rising star

Answer 25

High and high

Question 26

What is the market share and growth of a problem child

Answer 26

Low market share and high market growth

Question 27

What is the market share and growth of a cash cow

Answer 27

High market share and low market growth

Question 28

What is the market share and growth of a dog

Answer 28

Low market share and low market growth

Question 29

Describe cash cows

Answer 29

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

Question 30

Describe rising stars

Answer 30

Enjoy increasing sales revenue, fierce competition, heavy promotional spending, funded by cash cows, hope they become cash cows but many become dogs

Question 31

Describe problem children

Answer 31

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

Question 32

Describe dogs

Answer 32

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