The marketing mix- product Flashcards
What is a product
The product or service that a customer buys
What does product cover
name
packaging
smell/taste
guarantee after sales
product life cycle
portfolio of products
What is a product portfolio
When a business sells more that one product or service
How does a business have a product portfolio
Having a range of products or a good mix fo products
product range should all be at different stages of the product life cycle
What are the advantages of a product portfolio
To reduce the risk of failure
to assist financing the launch of new products
to cater for different market segments
to increase sales and profit
to improve the reputation of the business
to cope with seasonal fluctuation
What are the disadvantages with havign a product portfolio
If one product receives a bad reputation then the whole image of the range is tarnished
reduced opportunity to gain economies of scale
cost of purchasing different machinery
training staff to produce different products
research and development costs will be high for a range of products
sales promotion and advertising costs for all products will be high
What are the product development stages
Come up with an idea for a product
conduct market research
produce a business plan
produce a prototype
launch in a small area
receive feedback from customers
make changes if necessary
find a suitable suppleir for raw materials
produce the final product
decide on the marketing mix
What are examples of product extension strategies
Changing the name
product line extensions
altering the packaging
improving the quality of the product
changing the shape size or features
changing the use of the product
What is an example of price extension strategies
reduce or increase the price
What is an example of place extension strategy
Change where the product is sold- online
What is an example of promotion extension strategies
Changing the sales promotion
change the advertising
What si the boston matrix used for
to help a business decide on the range of products which it offers
can help a business decide when new products need ot be introduced or withdrawn from the market
Describe star boston element
high market growth/high market share- growth stage
a business will strive to have as many of these as possible
Describe the cash cow boston element
high market share/ low market growth- maturity
will often finance the development and introduction of new products
Describe the problem child boston element
High market growth/ low market share- intro
an expensive product to promote
does not generate much income as r+d costs have not been covered yet
promotion comes from finance generated from cash cows
