Market Mix - Product Flashcards
(39 cards)
what are the seven P’s?
- Product
- People
- Promotion
- Place
- Price
- Process
- Physical evidence
why must marketing mixed be used?
Every product must be marketed correctly in order for the product to be successful. In order for the correct marketing to happen, the marketing mix must be used.
what does market mix ensure?
The right product is sold in the right place at the right price using the right promotions.
how does business make sure that they make available the right product to consumers?
This is done through carrying out market research to find out what consumers want
what is the process of ensuring that the right product is made?
Usually a prototype is made, consumers test it, feedback is given, changes are made and the final version is released for sale.
instead of releasing a brand new product what do some companies do?
instead of releasing a brand new product, a business will just adapt an existing one to prolong its lifespan.
extension strategies
what is a product also concerned with?
Product is also concerned with how the product looks – packaging, image of the product and the after sales care provided.
what are the extension strategies?
- Change in price
- Add new features
- New advertisements and marketing campaigns
- Change the packaging
- Improve the product
- Target new markets
what should extension strategies lead to?
Using these should lead to increase sales and less competition.
what does product portfolio refer to?
This refers to the different products an organisation may choose to sell.
This means businesses sell more than one product.
what is product portfolio?
This is the range of different products a business sells, usually under the SAME brand name.
A product portfolio is the sum of all the various product lines an organisation produces.
However, the business could also decide to move into very different product ranges
what is product line portfolios?
product line is a group of products that are closely related
Different products within a product line will appeal to different market segments.
what is diversified product portfolio?
where a business sells a mix of unrelated products.
some business have both what?
both a product line AND diversified product line
what are the advantages of having a product portfolio?
- To spread the risk of failure – if sales of one product decline, others could be growing.
- The chances of success with a new product are enhanced because of loyal customers will be happy to try.
- Appealing to more than one customer segment should increase customer sales.
- To cope with products which have seasonal demand
what are the disadvantages of having a product portfolio?
- Cost of promoting and advertising lots of different products to different segments will be expensive.
- If one product receives a bad reputation, this can have an impact on the rest of the portfolio.
- R&D costs can be high to maintain the success of a variety of products.
- Staff may require training on the different products which is time-consuming and expensive.
what is product life cycle?
product life cycle shows the different stages of a new product passes through over time and sales that are expected at each stage.
what is the development stage?
Several market research activities are carried out to check if the product has demand.
High costs, zero sales, loss
what is the introduction stage?
The product is launched onto the market but normally sales are low due to competition and lack of awareness from the public.
Sales are low so business will have high advertising and promotion expenses to ensure customers become aware of the new product. As a result, profit is low.
what is the growth stage?
Sales rise sharply as awareness increases.
This is the first stage were the company starts making a profit.
At this stage, competitors may start to release their own version of the same product.
what is the maturity stage?
Sales reach their peak then begin to slow.
Competition increases and so, prices significantly drop.
Profit is at its most profitable.
(This profit can be used to fund development of new products)
what is the saturation point?
The end of the maturity stage
Too many competitors
People are no longer demanding the product.
High profits but sales start to decrease.
what is the decline stage?
Sales begin to fall, and the product begins a slow death as trends change and technology develops.
Profits begin to fall due to falling demand, lower prices and advanced products are released.
Eventually the product is withdrawn from the market.
what is the life span of a product?
length of a product’s life cycle depends on the product.