Flashcards in Marketing/ product life cycle Deck (20):
What is market segmentation?
A market segment is a group of customers in a market that have similar characteristics and needs
What are the benefits of market segmentation?
Can target specific groups of customers
Can carry out market research
Why do businesses need to think about marketing?
To reduce the risk of product failure
To understand their customers
Keep up to date with market trends
What is market research?
Market research is gathering information about customs, competitors and market trends by collecting primary and secondary data
What is a product trial?
When customers buy a product for the first time to assess whether or not they want to buy it again
What is repeat purchase?
Repeat purchase is when a customer buys the same product again and will keep coming back
What are the names of the stages in the product life cycle?
What are extension strategies?
This means that the business will slightly change their product going into decline so that it has a fresh appeal to customers
What is a product portfolio analysis?
When businesses sell a range of products
What does a product portfolio help to make decisions about?
What products to launch and when
When to withdraw a product
What products are doing well or badly
How to increase sales
Define the introduction phase
The product is launched or released into the market
Define growth in the product life cycle
If the launch is successful, the sales increase sharply and the product may make a profit for the first time
Define maturity in the product life cycle
Sales slow down, but repeat purchase takes place by loyal customers. The market becomes saturated as rivals bring out new products
Define decline in the product life cycle
Eventually the product is outdated and there is a big fall in the sales
What is the Boston Matrix?
A product portfolio analysis tool used to play the development of products
What are the four sections called in the Boston Matrix
What is a star?
A very successful product, but growth has to be funded to keep up with demand and cash flow may be a problem
What is a problem child?
Presents a problem, should the business invest to increase sales?
What is a cash cow?
There is little growth, but an established and profitable product can support others