Product marketing mix

Question 1

what is a good

Answer 1

products which have a physical existence

Question 2

what is a service

Answer 2

products which have no physical existence

Question 3

what is a brand

Answer 3

an identifying symbol, name or image that distinguishes a product from its competitors

Question 4

what are intangible attributes of a product

Answer 4

subjective opinions of customers about a product, which cannot be measured or compared easily

Question 5

what are tangible attributes of a product

Answer 5

measurable features of a product

Question 6

what is new product development (NPD)

Answer 6

the design, creation and marketing of new goods and services

Question 7

why is NPD important

Answer 7

-changing consumer tastes
-increasing competition-
-technological advancements
-opportunities for growth
-improve brand image

Question 8

for new products to succeed what must it have

Answer 8

a unique selling point (USP)
-be marketed effectively
-have desirable features

Question 9

what is a unique selling point (USP)

Answer 9

special feature of a product that makes it different from competitors products

Question 10

what is product differentiation

Answer 10

the unique qualities of a product that lead to a difference between the product and competitors products

Question 11

benefits of USP

Answer 11

easier to promote product
-can charge higher prices
-free publicity
-higher sales compared to undifferentiated products

Question 12

product portfolio analysis

Answer 12

analysing the range of existing products of a business to help allocate resources effectively between them

Question 13

two techniques of product portfolio analysis

Answer 13

boston matrix
product life cycle

Question 14

what is the product life cycle

Answer 14

the pattern of sales for a product from a launch to withdrawal from the market

Question 15

what are the different stages

Answer 15

1. introduction
2. growth
3. maturity/ saturation
4. decline

Question 16

reasons for a decline in product life cycle

Answer 16

-no extension strategy worked or tried
- the product is obsolete and needs replacement

Question 17

what is a consumer durable

Answer 17

manufactured product that can be re-used and is expected to have a reasonably long life (car phone)

Question 18

what are extension strategies

Answer 18

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)

Question 19

uses of product life cycle

Answer 19

assisting with marketing decisions (see book)
identifying the need for a balanced portfolio (see book)

Question 20

what is the Boston matrix

Answer 20

method analysing the product portfolio of a business in terms of market share and market growth

Question 21

what are the different stages of boston matrix and their market growth/share positions

Answer 21

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

Question 22

when is the boston matrix relevant

Answer 22

-analysing the performance and current position of existing product portfolios

-planning action to be taken with existing products

-planning introduction of new products

Question 23

what are the different marketing decisions to take with boston matrix

Answer 23

-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

Question 24

limitations of boston matrix

Answer 24

-can’t foresee next stage of a product
-assumes high market share lead to high profit