4.5 Flashcards
(30 cards)
What is product?
the result of a production process using resources to create a good or service that satisfies a need or want
What is product life cycle?
a model presenting the typical trend in sales of a product over time: Research and development stage, introduction, growth, maturity, and decline
What is the research and development stage?
pre-release activites including parket research, product development, and production preparation, with no sales of the product
What is introduction stage?
the initial release of the product to the market, focusing on making consumers aware of the product’s existence and the USP
What is the growth stage?
A period of acclerating sales growth
What is the maturity stage?
A phase of high and steady sales revenue, marketing objectives shifting towards building customer loyalty
What is the decline stage?
A period of falling sales and loss of market sahre due to factors like competition
What is extension strategies?
Methods used to lenghten the maturity stage of the product life cycle
What is branding?
The use of a name, symbol or design to identify a product or company with important aspects
What is packaging?
the exterior covering of a product, serving roles in promoting the USP of the product
What are some extension strategies businesses use?s
Finding a new target market, redesigning the package, product update, price reduction, new promotional strategies
What is brand awareness?
the degree to which consumers recognise the product by its name and special characteristics
What is brand development?
the process of creating and making a new strong brand image
What is brand loyalty?
when customers continue to buy from a particular brand even when alternatives exist
What is brand value?
the value of the intellectual property assoicated with the brand, or the additional value that consumers assign to the product because of its strong brand image
What is cost-plus (markup) pricing?
A pricing method where total direct costs and some allocation of indirect costs are added together, along wiht some mark-up, to determine the sales price
What is penetration pricing?
setting a low intial price to attract customers with the intention of increasing prices later
What is loss leader strategy?
pricing a product below its production cost to attract customers who will then purchase other, more expensive products
What is predatory pricing?
Selling a product or service at such a low price that competitors are forced out of a market, allowing the remaining company to raise prices
What is premium pricing?
Keeping the price of a product high to create precepiton of higher value
what is dynamic pricing?
changing the price of a good or service according to the demand
What is competitive pricing?
Setting the price of a product at the same level of competitiors, assuming the consumers percieve the quality to be similar
What is contribution pricing?
Setting the price of a product based on the price being higher than the direct cost of production, the difference being the contribution of fixed costs of production
What is price elasticity of demand (PED)?
a measure of how responsive the quantity demanded of a product is to changes in its price
