chapter 17 product Flashcards
product
anything that satisfies a need or want
branding
differentiates between a company’s products from its rivals by name design and logo
adv of branding for businesses
differentiates products from rivals eg Kerrygold
opportunity to promote brand eg mcdonalds ads
command a higher price eg nike
consumer loyalty eg Kellogs
creates a dominant market place eg Apple and Samsung 75% of the Irish market
adv of branding for consumer
gives confidence in product eg iphones
provides an image eg BMW successful businesswoman
helps to judge a product eg French perfume😍
makes it easier to choose eg Adidas logo=good quality
own brand
products sold by retailers under the retailer’s own name and logo
Tesco and Tesco finest
adv of own brand for a business
attract budget conscious consumers higher profit margin- your own product repeat customers easily recognisable products competitive advantage- product exclusive to store
adv of own brand for consumers
increased choice
cheaper prices
good quality
product design
*linked to main clauses of the Sale of Goods and Supply of Services Act 1980
this puts a legislative onus on producers to manufacture goods that are of merchantable quality and fit for the purpose intended
product design should be
attractive- appealing to customers
working excellently
cost effective- affordable
factors to consider when designing a product
cost of production
production feasibility
needs of target market
legal requirements
products packaging functions
attracts the consumer offers protection provides information competitive advantage- sports cap for drinks convenience to consumer- diff sizes
product life cycle
*be able to draw
1 introduction 2 growth 3 maturity 4 saturation 5 decline
introduction
promotional campaign- create awareness
sales and profits are low
product not well known
heavy costs- deficit
growth
brand awareness increases
sales and profits increase
market share improves
surplus cash
maturity
product well known
r and d needs to take place for new products
sales and profits are very good
cash flow excellent
