IB Business and Management Marketing 4.3 PRODUCT – Flashcards
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Boston Matrix
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Is a tool for analysing the product portfolio of a business. It measures whether products have a high or low MARKET SHARE and operate in HIGH or LOW GROWTH industries.
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Brand development
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Is a long-term product strategy that involves strengthening the name and image of a brand in order to boost its sales.
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Brand extension
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Refers to the use of an existing brand name that is successful to launch a new or modified product.
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Branding
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Refers to the use of an exclusive name, symbol or design to identify a specific product or business. It is used to differentiate itself from similar products used by rival firms.
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Cash cow
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Is a term used by the BCG Matrix to refer to any product that generates significant sales revenue due to its large market share in a slowly expanding or mature market.
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Consumer goods
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Are items bought by the final user for their own personal consumption. Examples include CONSUMER DURABLES (such as furniture, computers and cars) and PERISHABLES (such as flowers and food)
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Differentiation
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Refers to any strategy used to make a product appear to be dissimilar from others. Examples include quality, branding and packaging.
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Product differentiation
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Refers to any strategy used to make a product appear to be dissimilar from others. Examples include quality, branding and packaging.
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Extension strategy
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Is an attempt by marketers to lengthen the product life cycle of a particular product. Such strategies are typically used during the maturity or early decline stages of a product's life cycle.
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Generic brands
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Are trademarks that have become synonymous with the name of the product itself. Examples include Coke, Rollerblade, Tipp-Ex and Frisbee.
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New product development (NPD)
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Is the process of getting the latest products on to the market. The easiest way is by making small improvements to existing products. Alternatively, a business could develop and launch entirely new products.
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Marketing myopia
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Refers to the short-sightedness and complacency of marketers in adapting to changes in the market place. This may be especially true of product orientated businesses.
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Product
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A broad term that refers to any physical or non physical item that is purchased by either commercial or private customers.
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Product line
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Describes the varieties of of a particular product that serves the same purpose in a particular market. For example there are many different varieties of the BMW Mini, ranging from the basic model to the top of the range Mini Cooper S.
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Product mix
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Describes the variety of different product lines that a business produces.
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Product life cycle
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Is the typical process that products go through from their initial design and launch to their decline and withdrawal from the market.
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Six stages of the product life cycle
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Research. Launch. Growth. Maturity. Saturation. Decline.
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Product portfolio
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The range of products or strategic business units owned and developed by an organisation.
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Product range
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All product lines of a firm's product mix; i.e. all the products sold by the business.
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Stars
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Are products in the BCG Matrix that have high or rising market share in a high growth market.
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Strategic business unit (SBU)
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Are businesses or divisions owned by a firm that operate as independent profit centres. Each SBU is in charge of a certain product or product portfolio.
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Family branding
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A marketing strategy that involves selling several related products under one brand name (also known as umbrella branding).
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Product branding
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Each individual product in a portfolio is given its own unique identity and brand image (also known as individual branding).
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Company or corporate branding
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The company name is applied to products and this becomes the brand name.
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Own-label branding
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Retailers create their own brand name and identity for a range of products.
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Manufacturer's brands
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Producers establish the brand image of a product or family of products, often under the company's name.
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Brand
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An exclusive name, symbol or design used to identify a specific product or business.
