Products In The Marketing Mix Flashcards
What is product?
It means the goods and services that a business provides for its customers. Packaging is an important part of ‘product’.
What is a product life cycle?
It shows the stages through which a product passes through over time and the level of sales at each stage. The stages are:
What are extension strategies?
They are ways in which a business prevents a product’s sales from declining. Examples of extension strategies: ➢ Changing the product ➢ Changing the packaging ➢ Lowering the price ➢ New advertising campaigns ➢ Selling the product in new places
What is a product mix or product portfolio?
Businesses will often offer a range of products
What is diversification?
Many businesses produce more than one type of product, for example drinks, foods and household cleaning products.
Advantages of Diversifying?
Higher revenue due to selling a wider range of products
Spreads the risk: if one type of product is unsuccessful, the others may still be profitable
What is product differentiation?
It’s used by businesses to make their products different from other products they sell and different from those offered by competitors. (By altering the design, features, or some other aspect of their product).
One method of differentiation is to develop a strong BRAND, or BRAND IMAGE.
What is BRAND?
BRAND is a named product which customers see as being different from other products.
A strong brand can be developed by:
• Consistently high quality products
• Effective advertising
• Consistent use of logo, packaging, store layout, etc.
What are the benefits of a strong brand?
• Greater customer awareness
• Customer loyalty and willingness to buy new products
• Able to charge higher prices for the products (also called ‘premium prices’)
All of these will lead to high levels of revenue which should lead to high profits.
What is an ‘Own Brand’
It is a product which is sold under the brand name of a supermarket chain or other retailer, rather than that of the manufacturer of the product. Own brands are usually cheaper than branded products.
