PRODUCT

• What is marketing mix?

  elements of a firms marketing that are designed to meet the needs of customers
• What is marketing mix also known as?

  the 4p's
• What are the 4p's?

  • product
  • price
  • promotion
  • place
• What should a business use the 4p's for?

  • design and produce high quality products
  • charge a price that is acceptable to customers
  • let customers know about products through promotion
  • make products available in the right place at the right time
• What are the different stages of product development?

  • generating ideas
  • analysis
  • development
  • test marketing
  • commercialisation and launch
• Where may the ideas come from in the first stage of product development?

  owners, customers, competitors, staff, and even time spent analysing rivals products
• What happens in the analysis stage of product development?

  businesses must decide whether products are marketable, technically possible, a suitable fit with the current portfolio and legal
• What happens in the development stage of product development?

  could involve carrying out experiments, using simulations, building models, producing samples and initial testing. Frequent changes and modifications in designs might be necessary.
• What happens in the test marketing stage of product development?

  testing the product in a small section of the total market. This is used to gather information about what consumers think of the product
• What happens in the commercialisation and launch stage of product development?

  A business puts the 'final touches' to the product, finishes with all needed modifications and a marketing strategy will be designed that will begin with the national launch of the new product
• What are the factors that may influence the choice of packaging?

  • protection
  • environment
  • cost-effective
  • information
  • design
  • convenience
• Why should businesses consider what the packaging of their products looks like?

  because consumers often link the quality of the packaging with the quality of the product itself
• What is the product life cycle?

  the level of sales at the different stages through which a product passes over time
• What is 'skimming'?

  setting a high price initially and then lowering it later
• What is penetration pricing?

  setting a low price to start with in order to get established in the market; once established, price may be raised
• What are the different stages of the product life style?

  • development
  • introduction
  • growth
  • maturity and saturation
  • decline
• What happens in the development stage of the product lifestyle?

  the product is being researched, designed and tested. Many products do not make it beyond this stage. Development costs are high and can damage cash flow of a business
• What happens in the introduction stage of the product lifestyle?

  businesses introduce products with an official launch. Costs will continue to be high. The price charged when a product is first introduced will vary, some may start high, others low.
• What happens in the growth stage of the product lifestyle?

  Sales will start to grow. The business will now have increased revenue and begin to recover the costs of development. At the end of this stage, sales will start to grow less quickly because competitors will start to launch their own versions of this product.
• What happens in the maturity and saturation stage of the product lifestyle?

  sales will start to level off, development costs will have been covered and the product will be making profit. Cash flow will also be improving. The price is likely to fall and promotion methods may change.
• What happens in the decline stage of the product lifestyle?

  sales of many product decline and they are eventually taken off the market. This is because customer tastes change, new technology emerges or new products appear in the market. A business will replace declining products with new ones.
• What are extension strategies?

  methods used to lengthen the life of a product
• What are some examples of extension strategies?

  • finding new markets for the product (e.g. selling abroad)
  • finding new uses for a product
  • modifying the product
  • developing the product range (e.g. new crisp flavours)
  • changing the appearance or packaging
  • encouraging more frequent use of the product
• What is product portfolio?

  a range of products that a business is currently marketing
• What is the Boston matrix?

  2x2 matrix that describes products according to the market share they enjoy and whether the market has any potential for growth
• What are the four categories in the Boston matrix?

  • stars
  • cash cows
  • question marks
  • dogs
• What goes in the stars category of the Boston matrix?

  valuable products for a business. They have a high market share but also the potential for growth. They are likely to be profitable
• What goes in the cash cows category of the Boston matrix?

  mature products. They have high market share but the market is not likely to grow very much. Cash cows generate a steady flow of income for the business.
• What goes in the question marks category of the Boston matrix?

  products with a low market share but the market is growing. With the right marketing action, these products could do well. They have potential
• What goes in the dogs category of the Boston matrix?

  products at the end of their life cycle. They have low market share and the market is not likely to grow anymore. Dogs are likely to be replaced by new products.
• What goes along the y-axis of the Boston matrix?

  Market share
• What goes along the x-axis of the Boston matrix?

  Market share
• What categories are on the higher side of the Boston matrix?

  the star and the cash cow
• What categories are on the lower side of the Boston Matrix?

  the question mark and the dog
• What is the first stage in the product life cycle called?

  development
• In the Boston matrix, a product with a low market share but a high potential for growth is called what?

  question mark
• Which is an example of a service sold to businesses?

  office cleaning
• Which is an element of the marketing mix?

  price