Marketing: Products Flashcards
What are the Types of Product ?
1) Consumer Goods
2) Consumer Services
3) Producer Goods
4) Producer Services
Why is the Type of Product Important ?
It must satisfy customer wants and needs
It must be of the right quality
Must Not be too expensive to make
The quality needs to be appropriate to the brand images
What are the Stages of Developing a Product ?
1) Generate Ideas
2) Further Research
3) Decide how successful it is
4) Develop a Prototype
5) Test the Market
6) Full Launch
What are Benefits of Developing New Products ?
1) Unique Selling Point for the Business
2) Diversification as there is a broader range of products sold
3) Allow Business to expand into New Markets
4) Can expand into existing markets
What are Costs of Developing New Products ?
1) Costs of Market Research and analysis
2) Cost of Trial Products and Materials
3) Lack of Sales if target market is wrong
4) Loss of Company image if product fails
What is the importance of Brand Image ?
Brand Image can create Brand Loyalty, and can create an image of the products for customers
What is the Role of The Packaging ?
1) Must be Suitable for the Product
2) Must be Appealing to promote the product
What the product life cycle ?
1) Development- Product is developed
2) Introduced- Newly Launched
3) Growth- Sales grow rapidly
4) Maturity- Sales increase slowly - intense competition and high amount of advertising is used
5) Saturation- Profit Falls
6) Decline- Product Loses Appeal
How does Pricing Influence marketing Decisions
1) Branded Products sold at High Prices
2) Prices may be higher in growth stage
3) In Saturation or Maturity, price will reduce
4) Decline- prices reduced significantly
How does Promotion influence Marketing Decisions ?
1) Introduction Stage- Spending Higher
2) Later Stages- Promotion Lower
3) Promotion increased as extension strategy
How do you Extend the Product Life Cycle ?
1) Introduce New Variations
2) Sell into Mew Markets
3) Improve the Product
