The marketing mix: Product

Question 1

Marketing mix

Answer 1

is a term which is used to describe all the activities which go into marketing a product or service. Also known as the four P’s

Question 2

What is the aim of a product?

Answer 2

• The product needs to satisfy customer wants and needs
• Right quality,
• must not be difficult to make (cost charges

Question 3

Unique selling point

Answer 3

is the special feature of a product that differentiates it from the products of the competitors

Question 4

Benefits of developing a new product

Answer 4

• Unique selling point will mean the business is the first in the market with the new product
• Diversification for the business
• allows business to expands into new and existing markets

Question 5

Costs of developing a new product

Answer 5

• the costs of carrying out market research and analysing the results
• lack of sales if target market is wrong
• loss of company image, if product fails

Question 6

Brand name

Answer 6

is the unique name of a product that distinguishes it from other brands

Question 7

Brand loyalty

Answer 7

is when consumers keeps buying the same brand again and again without choosing an rival brand

Question 8

Brand image

Answer 8

is an image or identity given to a product which gives it a personality of its own and distinguishes it from other brands

Question 9

Packaging

Answer 9

is the physical container or wrapping of a product. It is also used for promotion and selling appeal.

Question 10

Packaging features

Answer 10

• Protects the product
• easy to transport
• easy to open and use
• eye catching
• carries info about the product
• promotes the brand image

Question 11

The product life cyle

Answer 11

describes the stages a product will pass through from its intro, through its growth until its mature and then finally decline

Question 12

1st stage of product life cycle

Answer 12

a product is developed. the prototype is tested and market research carried out before the product is launched on the market. There are no sales at this time

Question 13

2nd stage of product life cycle

Answer 13

Then, its INTRODUCED to the market. Sales grow slowly as customers are getting to know the product. Informative advertising is used until product becomes known. Price skimming is used if no competitors, no profits are made since development fee isn’t covered

Question 14

3rd stage of product life cycle

Answer 14

Sales start to GROW rapidly. Advertising is changes to persuasive to encourage brand loyalty. Prices reduce a little as competitors rise. Profits start to be made

Question 15

4th stage of product life cycle

Answer 15

MATURITY, sales now increase slowly. competition become intense and pricing strategies are competitive or promotional, Lots of advertising used

Question 16

5th stage of product life cycle

Answer 16

Sales reach SATURATION point and stabilise at highest point. High competition but no new ones. Competitive pricing is used. High advertising is used but profits fall as sales are static

Question 17

6th stage of product life cycle

Answer 17

Sales DECLINE as new products are introduced into the market, product is withdrawn from the market, as sales decrease, Advertising is stopped

Question 18

Extension strategies

Answer 18

is a way of keeping a product at the maturity stage of the life cycle and extending the cycle

Question 19

Extending the product cycle

Answer 19

• Introduce new variations of original product
• New markets
• small changes to design, color, packs
• Use a new advertising campaign
• Improved version
• additional, retail outlets