Marketing - Product Flashcards
Product life-cycle shows:
The different stages a new product passes through over time and the sales that can expected at each stage
Product
The goods/services that the customer purchases. Includes packaging, image, guarantee and after-sales service
Product life-cycle: Introduction
Product is launched. Costs of holding stock/advertising/promoting product can be high. Profit only made once costs have been paid
Product life-cycle: Growth
Sales increase significantly as customer knowledge of the product increases. Profits rise
Product life-cycle: Maturity
The product becomes commonplace in the market, sales reach peak. Competition increases & product price falls
Product life-cycle: Decline
Customer tastes change etc. Sales fall & profits decrease
Extension strategies
See sheet
Product mix/ Product portfolio
See sheet
Product line
See sheet
Branding: A brand is:
A name, design or combination of these given to a product(s) by the producer which is intended to identify the goods produced e.g. Heinz
Own brands/labels
Refers to a retailer’s own product which may be the retailer’s own name. They don’t normally produce the actual product e.g. Tesco Value or George at ASDA
