Product marketing mix Flashcards
what is a good
products which have a physical existence
what is a service
products which have no physical existence
what is a brand
an identifying symbol, name or image that distinguishes a product from its competitors
what are intangible attributes of a product
subjective opinions of customers about a product, which cannot be measured or compared easily
what are tangible attributes of a product
measurable features of a product
what is new product development (NPD)
the design, creation and marketing of new goods and services
why is NPD important
-changing consumer tastes
-increasing competition-
-technological advancements
-opportunities for growth
-improve brand image
for new products to succeed what must it have
a unique selling point (USP)
-be marketed effectively
-have desirable features
what is a unique selling point (USP)
special feature of a product that makes it different from competitors products
what is product differentiation
the unique qualities of a product that lead to a difference between the product and competitors products
benefits of USP
easier to promote product
-can charge higher prices
-free publicity
-higher sales compared to undifferentiated products
product portfolio analysis
analysing the range of existing products of a business to help allocate resources effectively between them
two techniques of product portfolio analysis
boston matrix
product life cycle
what is the product life cycle
the pattern of sales for a product from a launch to withdrawal from the market
what are the different stages
- introduction
- growth
- maturity/ saturation
- decline
reasons for a decline in product life cycle
-no extension strategy worked or tried
- the product is obsolete and needs replacement
what is a consumer durable
manufactured product that can be re-used and is expected to have a reasonably long life (car phone)
what are extension strategies
a marketing plan to extend the maturity stage of the product before a completely new one is launched
(selling in new markets, repackaging and launching product, find new uses)
uses of product life cycle
assisting with marketing decisions (see book)
identifying the need for a balanced portfolio (see book)
what is the Boston matrix
method analysing the product portfolio of a business in terms of market share and market growth
what are the different stages of boston matrix and their market growth/share positions
A. Cash cow (low market growth/ high market share)
B. star(high/high)
C. Question mark(high market growth/ low market share)
D. Dog (low/low) SEE BOOK
when is the boston matrix relevant
-analysing the performance and current position of existing product portfolios
-planning action to be taken with existing products
-planning introduction of new products
what are the different marketing decisions to take with boston matrix
-bulding: supporting question mark
-holding: continuing support of star so market position is held
-milking: taking positive cash flow and injecting it into other products
-divesting: identifying worst performing dogs and stopping production
limitations of boston matrix
-can’t foresee next stage of a product
-assumes high market share lead to high profit
