Product Flashcards
What is a Product?
Any good or service that is offered for sale to consumers
What is a Product Portfolio? What does it allow a business to do?
The mix of products a business produces and sells.
Allows:
Spread fixed costs
Allows for greater economies of scale
Allows the targeting of wider markets
Reduces risk
Smooths out overall sales
Creates opportunities for growth
What is Branding? What are its advantages and disadvantages?
It is a name, term, sign, symbol or design that identifies a sellers products and differentiates them from competitors products.
Advantages:
Brand loyalty
Differentiate the product
Gain flexibility when making pricing decisions
Help recognition
Develop a brand image
Gain consumer trust
Clear and recognisable identity
Retailers will be more willing to stock
Competitors have to discount products to compete
Disadvantages
Might damage a business reputation if new product does not do well
High cost of advertising
High cost of research and development
What is Unique Selling Point (USP)?
Something differentiates a product from its competitors
What is Differentiation? How can it be Differentiated?
Making products different
from the competition is important.
This separates a brand from
competitor brands. Products might
be very similar in the way that they
are made or how they are used but
may be perceived quite differently
by consumers.
Differentiation:
Methods of promotion
Packaging
Form/looks
Provision of add-ons
Quality and reliability
