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Flashcards in Product Deck (17):

What is a product?

A product is a good or a service that is sold to customers or other businesses.


How is product differentiation created?

- Establishing a strong brand image (personality) for a good or service.
- Making clear the unique selling point (USP) of a good or service, for example, by using the tag line quality items for less than a pound for a chain of discount shops.
- Offering a better location, features, functions, design, appearance or selling price than rival products.


What are the challenges for a business about product?

- making products different from competitors
- ensuring that customers recognise that the product is different


How can you differentiate a product?

- distinctive design
- branding
- performance


What is a product range?

Product range is a collection of similar products offered by the same business.


What is a help spread risk?

A help spread risk is a decline in one product that may be offset by sales of other products.


What is branding?

- product with a unique character, design or image
- consistent and well recognised
- helps consumers believe that it is a quality good or service they are being offered.


What are the benefits of branding?

- inspires customer loyalty leading to repeat sales
- can charge higher prices, especially if brand is market leader
- retailers or service sellers want to stock brands


What are own label brands?

Own label brands are retailers which uses its own name on a product rather than manufacturers.


Why is packaging used?

- protection of contents
- distribution to customer
- selling
- customer convenience - e.g multi-pack


What is the role that packaging plays "in selling"?

- if a product cannot be differentiated by it's features or designs, then packaging becomes really important.
- it helps to advertise and promote brand image.
- help maintain quality standards.
- designed to encourage impulse buying.
- packaging also needs to appeal to the distributors.


What are the 4 stages of the Product Life Cycle?

- Launch
- Growth
- Maturity
- Decline


What happens at the development and launch stage?

- lots of advertising to make people aware of the product
- sales are low
- price of product is often high
- company should usually expect low profits


What happens at the growth stage?

- more customers as brand loyalty is established
- sales rising
- higher profits


What happens at the maturity and saturation stage?

- sales have peaked
- most profitable stage
- competitors may have bought out similar products
- market could be saturated


What happens at the decline stage?

- due to actions of competitors, changes in fashion/taste or technology
- sales fall and eventually product is taken off shelves


Identify 2 ways in which businesses prevent their product from going into decline:

- making it more appealing to their customers by doing things such as changing the packaging - modifying it
- releasing extensions to go with the product
- new uses for the same product