16 Questions
What is the product life cycle stage where sales slow down and profits often fall due to competition?
Maturity Stage
What is the width of the product mix?
The number of different product lines sold by a company
What is a product line extension?
The addition of new products to an existing product line
What is a product?
Anything that can be offered to a market that satisfies a want or need
What is the difference between goods and services?
Goods are tangible products, while services are intangible products
What is a consumer product?
Products sold to individuals and families
What are the three categories of consumer products?
Convenience, Shopping, Specialty
What is the verbal component of a product’s identity?
Brand name
What is the visual component of a product’s identity?
Brand mark
What is the difference between generic and brand name products?
Generic products have no brand name recognition and are sold at a reduced price
What are the potential purposes of packaging?
To make the product stand out from the competition
Why would a business add a new product?
To reach new customers and keep up with the competition
What are some risks of adding a new product?
New products fail at a high rate and can be time-consuming and expensive to develop
What is a business-to-business product?
Products sold to businesses for further processing, reselling, or use in their operations
Why do businesses need to manage their product mix?
To avoid missing out on sales with too few items and spending unwisely with too many items
Define brand and describe why businesses use branding.
A brand is a product's identity, and businesses use branding to distinguish their products from competitors
Study Notes
Product Life Cycle
- The Maturity stage is where sales slow down and profits often fall due to increased competition.
Product Mix
- The width of a product mix refers to the number of product lines offered by a company.
Product Line Extension
- A product line extension is the addition of a new product to an existing product line, sharing a common brand or characteristic.
Products
- A product is anything that satisfies a consumer's needs or wants, including physical goods, services, and ideas.
Goods vs. Services
- Goods are tangible, physical items that can be seen and touched.
- Services are intangible, non-physical offerings, such as healthcare or financial services.
Consumer Products
- A consumer product is a product intended for personal or household use.
- The three categories of consumer products are:
- Convenience products (e.g., food, personal care items)
- Shopping products (e.g., clothing, electronics)
- Specialty products (e.g., luxury cars, fine jewelry)
Product Identity
- The verbal component of a product's identity is its brand name, slogan, and messaging.
- The visual component of a product's identity is its packaging, logos, and overall design.
Generic vs. Brand Name Products
- Generic products are unbranded, unadvertised, and often cheaper than branded products.
- Brand name products are branded, advertised, and often more expensive than generic products.
Packaging
- The potential purposes of packaging include:
- Protection of the product during transportation and storage
- Communication of product information to the consumer
- Differentiation from competitors
- Convenience for the consumer
Adding New Products
- A business may add a new product to:
- Increase revenue and market share
- Attract new customers
- Diversify their product offerings
- Risks of adding a new product include:
- Financial investment
- Competition from existing products
- Uncertain demand and profitability
Business-to-Business Products
- Business-to-business (B2B) products are products sold from one business to another for use in operations or production.
Product Mix Management
- Businesses need to manage their product mix to:
- Ensure a balanced portfolio of products
- Meet customer needs and preferences
- Adapt to changes in the market
Branding
- A brand is a unique identity, image, or reputation that sets a product or business apart from others.
- Businesses use branding to:
- Create customer recognition and loyalty
- Differentiate themselves from competitors
- Increase perceived value and profitability
Test your knowledge of product planning with this quiz on the product life cycle. Explore the four stages of the product life cycle and their significance in marketing. Sharpen your understanding of product development and its impact on consumer needs.
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