Marketing (product) Flashcards
1
Q
Product portfolio
A
Range of products a company offers
2
Q
What is the difference between product mix and range
A
Product Range-
Variations of a specific product made to appeal to different market segments
Product Mix-
A mix of related products that can be marketed together and to similar market segments
3
Q
Why do larger businesses often widen their porfolio
A
- To not have to depend on one product
- Limit the risk of the products going through the life cycle too quickly
- Attract more people because there is a range of products
4
Q
Product life cycle
A
A model showing the life span of a products sales from launch to being taken off the market
5
Q
What are the problems of a business widening their product portfolio
A
- They might not be able to keep up with how many products they have and in what sections
- Can mean that staff and cash are spread more thinly
- cost of managing everything is expensive
6
Q
Why is product life cycle useful
A
- It shows a business what stage their product is at and where they are going next
- It helps the company when planning. For example they gain a better idea of how to allocate marketing funds
- Allows companies to take a more eager approach to maximizing sales and profits during each stage
7
Q
Extension strategy
A
Used to increase the market share of a product in order to keep it in the maturity phase
8
Q
Examples of extension strategies
A
- Rebranding -Reduce price
- Select a new target market -Promote again
- Improve the product (Innovate) -Sales offers
