4.5.1. Product

Product

Any tangible good or intangible service that serves to satisfy the needs and wants of customers

Consumer products

any tangible good or intangible service purchased by private individuals for personal use.

Producer products

industrial goods that are purchased by businesses to use in the production process.

Product life cycle

A model that shows the different stages of diffusion that a product is likely to go through. This is measured in comparison to sales revenue.

Product portfolio

A collection of all the products owned by a business at a point in time

Extension strategy

Marketing activities for an existing product that are changed to prevent sales from falling and expand the length of the maturity stage.

Examples of extension strategy

Price reduction, redesigning/update, repackaging, new markets, new promotional activities

Pros of extension strategy

+ Should be guaranteed increased revenue in the future

+ No need to create a whole new product - e.g. price reduction

+ Relatively simple - change packaging, new name, etc.

Cons of extension strategy

- Costs involved - e.g. redesigning

- Consumers may see through the strategy - Brand without new ideas

- Budget for R&D of new products

Brand

Name or trademark that is identifiable with a business or product. It is a key product differentiator and an intangible asset.

Form of brand

Sign, Symbol, Color scheme, Font, Design

Brand awareness

Extent to which potential customers, or the public, recognize and remember a particular brand.

Brand development

Marketing process of improving the business and its awareness.

Brand loyalty

Extent to which customers return to buy a particular brand and the extent to which they prefer this over rivals.

Brand value

Premium that customers are willing to pay for a brand name over and above the value of the product itself