Unit 3: Chapter 12 Flashcards
The Marketing Mix: Product
What is a product?
A good or service
something tangible or doing something for someone.
What is a consumer good?
A good that that the general public can buy. They are consumed by people e.g. food, clothes
What is a consumer service?
A service the general public can buy. e.g. car repair, hair dressing, education
What is a producer good?
Something that only businesses can purchase. A good that are produce for only businesses to use (not general public). e.g. Lorries and Cranes
What is a producer service?
A service only produced to help other businesses. e.g. marketing agencies, accounting.
What is a B2B and B2C business?
B2B - business to business
B2C - business to consumer
some businesses can be both
What makes a successful product?
satisfy existing needs of customers, not expensive to produce (relative to selling price), design performance reliability quantity, original idea
What is the product development process?
- generate ideas
- further research on best ideas
- decision making on firms ability to sell
- develop prototype
- test market (launch in a area)
- full launch
Why should one follow the product life cycle?
To ensure higher chances of success
What are the benefits of developing new/original products?
USP, diversification: if one product fails they have other backups to keep revenue coming, expand into new markets, take further market share
What are the drawbacks of product development?
cost of development and market research is expensive, developing and trials are costly, loss of sales if product fails, risky if new market (no experience)
Why is branding important?
Creates brand name - distinguish from other products/competitors,
creates brand image and brand loyalty.
What is the role of packaging?
protects product, promotes brand image, selling appeal, labeling (legality), transportation
What are the stages in the product life cycle?
development, introduction, growth, maturity, saturation, decline
In which stage of the product life cycle are sales the highest and lowest?
saturation: highest
development: zero
introduction + decline: lowest
