3.3.1 Product Flashcards Preview

IGCSE Business Studies > 3.3.1 Product > Flashcards

Flashcards in 3.3.1 Product Deck (13)
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1
Q

What are the costs of developing a new product?

A

Market research to identify customer needs

Development of a new product

2
Q

What are the benefits of new product development?

A

Charge higher prices for new products
Increase potential sales, revenue and profit
May achieve growth and economies of scale

3
Q

What is ‘brand image’?

A

general impression of a product held by consumers

4
Q

What are the purposes of ‘brand image’?

A

Consumers recognise their product more easily
Product can be charged higher than less well-known brands
Easier to launch new products into market

5
Q

What are the roles of packaging?

A

Protect product
Give information about product
To help consumers recognise product
To keep product fresh

6
Q

What is the ‘product life cycle’?

A

the cycle which every product goes through from introduction to withdrawal or eventual demise

7
Q

What are the main stages of a product life cycle?

A

Introduction
Growth
Maturity
Decline

8
Q

What are ‘extension strategies’?

A

marketing activities to extend the maturity stage of a product

9
Q

Examples of ‘extension strategies’?

A

Finding new markets for product
Finding new uses for product
Adapting product or packaging to improve its appeal to consumers
Increased advertising and other promotional activities

10
Q

Marketing decision in ‘Introduction’

A

Product: Only a basic model of the product is available

Price: Prices might lower than competitors prices to attract consumer

Promotion: High promotional activity

Place: The product may be offered for sale in specially selected outlets

11
Q

Marketing decisions in ‘Growth’

A

Product: Changes might be made to the product as a result of feed back from consumers in the test market

Price: Brand image helps to create customer loyalty

Promotion: Promotional activity still high to continue persuading customers

Place: The product is more widely available, which helps to increase sales

12
Q

Marketing decisions in ‘Maturity’

A

Product: Extension strategies might be used to keep the product in this, the most profitable stage of its life cycle

Price: Price will remain similar to that of competitor products

Promotion: Promotional activities are aimed at reminding the customers that the products are still available

Place: The product is now available for purchase through a wide distribution network

13
Q

Marketing decisions in ‘Decline’

A

Product: The product and packaging is not altered

Price: The price might be reduced to maintain sales or sell off the remaining stock before withdrawing the product

Promotion: Advertise the products at a lower price

Place: The product is only available in profitable outlets