Chapter 6: Product as part of marketing mix

Maturity

________: sale curve peaks within the stage, product continuing to make a profit, competition is strong and more marketing is needed to extend the product appeal.

Heterogeneous

________: services are not standardised, every experience is individual.

Growth

________: demand is steadily rising, competitors are working on substitute products, sales volume increasing thus profitability is also increasing.

Decline

________: Number of sales fall sharply, organisation needs to decide whether to discard the product or to re- launch it and is a very costly stage for the organisation.

Introduction

________: product is launched into the market, period of intense marketing to raise awareness and to attract customer loyalty, limited volume of sales, high cost of promotion and no competition.

Product life cycle

________: allows an organisation to evaluate the positioning of the products and services it offers in the market.

Product

Anything that can be offered to a market that might satisfy a need

Tangible

You can see and physically hold a product

Homogeneous

Like products are all standardised

Separable

You can easily distinguish between one product and another because of the features of the product

Storable

A product will last and is not perishable

Intangible

Services cannot be physically held or seen

Heterogeneous

Services are not standardised, every experience is individual

Inseparable

It is not possible to separate the service out of the experience

Incapable of being stored

Services are personable and cannot be transferred for use at a later date

Product life cycle

allows an organisation to evaluate the positioning of the products and services it offers in the market

Introduction

Product is launched into the market, period of intense marketing to raise awareness and to attract customer loyalty, limited volume of sales, high cost of promotion and no competition

Growth

Demand is steadily rising, competitors are working on substitute products, sales volume increasing thus profitability is also increasing

Maturity

Sale curve peaks within the stage, product continuing to make a profit, competition is strong and more marketing is needed to extend the product appeal

Decline

Number of sales fall sharply, organisation needs to decide whether to discard the product or to re-launch it and is a very costly stage for the organisation