Advantages of Branding
- Products are easily identifiable
- brand loyalty is built up
- premium pricing can occur
- High quality is usually associated
- A family of products can be created
Disadvantages of branding
- Brands take time to build up reputation and quality
- Advertising and promotion can be expensive
- negative press can tarnish the entire family
- Cheap imitations may flood the market
Advantages of own brands
- Attract more customers and sales within the store
- Producer will have guaranteed sales
- Own labels require little advertising as customers are usually regular shoppers
- The retailer does not need to produce the own brand products, they can buy them
- Own brands are usually cheaper and therefore have an advantage over trusted brands
Disadvantages of own brands
- Some customers believe own brands are of lower quality than established brands
- Whole brands can be tarnished over one bad product which may ruin the reputation over night
Product Orientation
When a business focuses on the production process and seeks to make goods that are superior
PRODUCT ORIENTATION GETS THE PRODUCT RIGHT
Market Orientation
Market orientation starts with the consumer and ends with the consumer. Used market research to make a product
MARKET ORIENTATION GETS THE RIGHT PRODUCT
Stages of the product life cycle
DEVELOPMENT
INTRODUCTION
GROWTH
MATURITY
SATURATION
DECLINE
What are the extension strategies for the product lifecycle?
INTRODUCE NEW VARIETIES OF THE PRODUCT
FIND NEW MARKETS FOR EXISTING PRODUCTS
CHANGE THE PRICE
UPDATE THE PRODUCT
CHANGE THE CHANNEL OF DISTRIBUTION
MODIFY THE PACKAGING
USE A NEW ADVERTISING CAMPAIGN
What is market segmentation
Market segmentation involves using market research information to split the consumers in your market into SEPARATE and IDENTIFIABLE groups with specific wants.
Advantages of a product portfolio
> Having multiple markets massively increases potential sales
> Fall in demand for one product can be compensated for by income from other so there is less overall risk of failure.
> The organisation have an easier job launching new products as income from other products help subside it.
Disadvantages of product portfolio
> The organisation must decide which products to invest in across the portfolio
> Some products may use investments up and never take off
> One products bad reputation could have a knock on effect on the whole organisation’s portfolio potentially decreasing profit across the board.
