2.2

• What does the marketing mix consist of?

  The 4Ps: product, price, place, promotion
• How do the 4Ps work together in marketing?

  They satisfy target market needs and company objectives
• What are the elements of the product design mix?

  Function, aesthetics, and cost
• What types of products exist in the market?

  Tangible goods and intangible services
• Why is balancing function, aesthetics, and cost important?

  It ensures products are functional, attractive, and cost-effective
• Which product exemplifies a balance of function, aesthetics, and cost?

  Fentimans ginger beer

  
• What does the function of a product refer to?

  Its intended purpose and specific tasks
• How do aesthetics influence consumer behavior?

  They attract customers and create brand loyalty
• What must be considered when designing a product?

  The cost of production
• What is the product life cycle?

  The stages a product goes through from conception to decline

  
• How many stages are in the product life cycle?

  Five stages
• What are the five stages of the product life cycle?

  1. Development
  2. Introduction
  3. Growth
  4. Maturity
  5. Decline

  
• What implications does the product life cycle have for cash flow?

  It varies at each stage affecting marketing strategies
• What are the implications of each stage of the product life cycle for cash flow and marketing strategy?

  • Development: High costs, negative cash flow
  • Introduction: High promotion costs, negative cash flow
  • Growth: Positive cash flow, focus on market share
  • Maturity: Positive cash flow, maintain market share
  • Decline: Negative cash flow, manage decline

  
• What is the focus during the development stage?

  Designing and developing the product
• What characterizes the introduction stage of the product life cycle?

  Slow sales growth and high promotion costs

  
• What happens during the growth stage of the product life cycle?

  Sales increase rapidly and market share is built

  
• What is the focus during the maturity stage?

  Maintaining market share and increasing profitability
• What occurs during the decline stage of the product life cycle?

  Sales begin to decline and costs increase

  
• What are extension strategies in the product life cycle?

  • Techniques to extend a product's life
  • Boost sales and maintain profitability
  • Used when a product reaches decline stage
• What are the two types of extension strategies?

  1. Product-related extension strategies
  2. Promotion-related extension strategies
• What do product-related extension strategies involve?

  Changing or modifying the product to appeal more
• Give an example of a product improvement strategy.

  Samsung releasing new Galaxy Smartphone versions
• What is a line extension strategy?

  Introducing new variations of an existing product
• What does repositioning involve?

  Changing the market perception of a product
• What do promotion-related extension strategies involve?

  Changing marketing and promotion to boost sales
• What is product differentiation?

  Distinguishing products from competitors' offerings
• Why is strong product differentiation important?

  It helps develop competitive advantage
• What is a unique selling point?

  A feature that distinguishes a product in the market
• How does successful product differentiation benefit a business?

  Increases demand, loyalty, and allows higher prices
• What example illustrates successful product differentiation?

  Hyundai's three-year warranty on cars
• What is the purpose of pricing strategies?

  To ensure profitability and competitiveness
• What are the two main pricing strategy options?

  High profit margin, lower volume or vice versa
• What influences the choice of pricing strategy?

  Customers, competitors, and costs
• How do unique selling points affect pricing?

  Products with many USPs can command higher prices
• How does technology influence pricing strategies?

  It creates new pricing strategies and markets
• What happens in highly competitive markets regarding pricing?

  Businesses may need to set lower prices
• How does a strong brand affect pricing?

  A strong brand can command higher prices
• What pricing strategy is used in the introduction stage?

  Prices may be set lower to attract customers
• What occurs in the growth stage regarding pricing?

  Prices can increase as demand rises