product Flashcards
product
a good or service that fulfils a customer’s needs and is offered for sale
product portfolio
a mix of products a business produces and sells
brand
- an identity that customers can recognise
- a name that can help differentiate from competitors
brand advantages
- create customer loyalty
- separate product from competitors
- increase business value
brand disadvantages
- high advertising cost
- invites competition
- loss of brand value can affect all products
USP
when a product has features that separate itself from competitors
differentiation
making products different from competition
=> eco-packaging (rem beauty)
=> different looks (sheglam blush)
=> quality (rare beauty blush)
product life cycle
represents different stages in the life of a product and the sales achieved
introduction stage
- new to the market
- high costs, negative profits
- advertising is essential
growth stage
- product becoming more known
- sales increase rapidly
- profits low, costs need to be covered
- advertising still essential
maturity stage
- want to maintain this stage
- increase competition
- high profits, sales at peak
- maximised profits
saturation stage
- competitors have similar products
- market is full
- lower prices
- think of extension strategies
decline stage
- sales & profits fall fast
- low advertising
- business focuses on core products
extension strategies
strategies that extend the life of a product that is declining in hopes to reposition the product
=> new features
=> targeting a different market
=> ‘now with’ policy
product life cycle advantages
- determine whether to discontinue or introduce new products
- target markets
- analyse its position in market
