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Flashcards in Marketing/ product life cycle Deck (20):
1

What is market segmentation?

A market segment is a group of customers in a market that have similar characteristics and needs

2

What are the benefits of market segmentation?

Can target specific groups of customers

Can carry out market research

3

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

4

What is market research?

Market research is gathering information about customs, competitors and market trends by collecting primary and secondary data

5

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

6

What is repeat purchase?

Repeat purchase is when a customer buys the same product again and will keep coming back

7

What are the names of the stages in the product life cycle?

Introduction
Growth
Maturity
Decline

8

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

9

What is a product portfolio analysis?

When businesses sell a range of products

10

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

11

Define the introduction phase

The product is launched or released into the market

12

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

13

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

14

Define decline in the product life cycle

Eventually the product is outdated and there is a big fall in the sales

15

What is the Boston Matrix?

A product portfolio analysis tool used to play the development of products

16

What are the four sections called in the Boston Matrix

Star
Cash cow
Question/problem child
Dog

17

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

18

What is a problem child?

Presents a problem, should the business invest to increase sales?

19

What is a cash cow?

There is little growth, but an established and profitable product can support others

20

What is a dog?

A product that doesn't sell anything, and can lead to being taken off of the market