product Flashcards
what are the 4 elements of a firm’s marketing
product, price, place, promotion
what are the stages of product development
generating ideas, analyzing and filtering ideas, developing the product, test marketing, commercialization and launch
why is packaging important
conveys product quality, displays the brand name, differentiates from rivals
what is maturity in the product life cycle
revenues stabilize or fall, profits are made, extension strategies may be used
what are the stages of the product life cycle
development, introduction, growth, maturity, decline
what happens during the development stage
no sales, high research and development costs
what happens during the growth stage
revenues increase significantly, costs begin to recover, competitors emerge
what are the 4 categories in the Boston matrix
star, cash cows, question marks, dogs
why does a product decline
out-of-date design, changes in fashion, technological advancements
what are the benefits of extension strategies
improves brand image, saves costs on new brand development, creates market entry barriers for competitors
what are extension strategies
changing the product’s appearance, encouraging more frequent use, finding new markets
what are the drawbacks of extension strategies
they are expensive, failure may harm brand image
what is a product portfolio
range of products a business markets
what does the Boston matrix categorize products by
market share and market growth
what is a star product
high share and growth
