Marketing Product Mix Test

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21 Terms

1
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What is product planning?

Product planning involves making decisions about the features and services of a product or idea that will help sell that product or idea that will help sell that product.

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What is the product mix?

 includes all the different products a company makes or sells and helps stop a company from depending on one product

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Product Line

  1. A group of closely related products manufactured or sold by a businesses

    1. Example- coke, cheerios, iPhone 

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Product Item

  1. A specific model, brand or size of a product within a product line. 

    1. Example- Diet Coke, Honey Nut Cheerios, iPhone 16

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Product width

  1. The number of different product lines a business manufactures or sells. 

    1. Example: 3 brands of cereal from General Mills (Cheerios, Chex, Fiber One)= Product

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Product depth

  1. The number of items offered within each product line and number of sizes, types offered for each type of cereal. 


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  1. Generating ideas - NEW PRODUCT DEVELOPMENT PROCESS

  1. Sources- customers, competition, channel members, company employees. 

  2. Focus groups 

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  1. Screening ideas NEW PRODUCT DEVELOPMENT PROCESS

  1. Matched with company goals, target markets, competitors 

  2. Concept testing 

  3. Large number of products are rejected 

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  1. Developing a business proposal

  1. Size of market 

  2. Potential sales 

  3. Competition 

  4. Level or risk 

  5. Production requirements 

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  1. Developing the product

  1. Physical shape (packaging, branding, production) 

    1. Example - Ben and Jerry’s ice cream (Cherry Garcia - Chocolate covered cherries) 

    2. Prototype - a model of the new product 

    3. Tested for durability, safety  

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  1. Testing the product with consumers 

  1. Market research in certain geographic areas 

  2. Not always necessary (costly) 

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  1. Introducing the product (commercialization) 

  1. Commercialization 

  2. Advertising 

  3. Beat out competition 

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  1. Evaluating customer acceptance

  1. How often do customers buy the new product? 

  2. When did customers last buy the new product? 

  3. Where are the best customers for our new product? 

  4. What new products are customers buying? 

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  1. What are 2 ways to develop existing products?

  1. Line extensions: 

  1. Expand product offerings by adding new product lines, items or services which may or may not be related to current products.

  1. Product Modifications: 

    1. An alterations in a company’s existing product 

    2. Offered in new and different varieties, formulations, colors, styles, features, or sizes 


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  1. What are 6 reasons to delete a product or a product line?

  1. Obsolescence 

  2. Loss of Appeal 

  3.  Changes in Company Objectives 

  4. Lack of profit

  5. Conflict with other products in the line 

  6. Replacement with New Products 

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Introduction Stage: of the product life cycle

  1. Focus on production and promotion 

  2. Goal - draw a customer’s attention 

  3. Increase product awareness and develop a market for the product

  4. Increased costs due to new packaging and distribution expenses 

  5. Patents/trademarks are obtained 

  6. LEAST profitable stage 

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  1. Growth Stage  PL

  1. Build the brand and increase market share

  2. Increasing sales and profits 

  3. Advertising focuses on customer satisfaction, not product newness

  4. Competition increases 

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  1. Maturity Stage PL

  1. Sales decrease or slow 

  2. More competition 

  3. Most of the target market owns the product 

  4. Promotional costs are lower 

  5. Competition causes lower profits and less sales 

  6. Company decides to improve product to maintain market share 

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  1. Decline Stage PL

  1. Sales fall 

  2. Profits smaller than expenses 

  3. Advertising/promotion decrease 

  4. Company can decide to delete the product from its product mix

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  1. What are 5 product mix strategies for when a product enters the maturity/decline stage?

Maturity or Decline Stage

  • Sell or License the Product 

    • Risk taking companies 

    • Revitalize the product by changing image or introducing to a new market 

  • Recommit to th e Product line 

    • Other uses to improve sales 

    • Example - knox and jello-o 

  • Discount the product 

    • Compete with cheaper store brands

  • Regionalize the Product 

    • Sell only in areas with stronger customer loyalty 

  • Update or Alter the Product 

    • Redesigned, packaged differently, or reformulated 

    • Example - baking soda, tide 


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Describe the product positioning techniques. (price, features and benefits, competition, other products)

  • Positioning by Price and Quality 

    • Economy line 

    • Mid-priced line 

    • Luxury line 

    • Stresses high quality or good value 

  • Positioning by Features and Benefits 

    • Associated with general feature, attribute, or customer benefit 

    • Example - Rockport shoes (comfortable) 

    • Highlight unique or perceived characteristic 

    • Example - Old Spice (adventurous and unconventional)

  • Positioning in Relation to Competition 

    • Try to establish advantage over competition 

    • Example - Southwest Airlines 

  • Positioning in Relation to other Products in a Line 

    • Example - iPod (Nano, Touch) 

    • Unique features and benefits appealing to different needs of customers