Unit 4.5-Product

1. Maturity is the most profitable stage in the product life cycle ​ (a)   . Decline is the last phase in the product life cycle when sales fall to a level that eventually leads to the product being removed from the market ​ (b)   . Research and development is the phase in the product life cycle that involves investing in  marketing campaigns that make sure that people become aware of the new product ​ (c)   . A key aim of the growth phase in the product life cycle is to increase profits ​ (d)   . Product modification is the process of enhancing an existing product so as to attract more customers and to extend the product's life cycle ​ (e)   .

• True
• False

Establishing a unique selling point (USP) can help to prolong the life cycle of a product ​ (a)   . If a product fails to attract sufficient customers, it will fail to enter the growth phase of the product life cycle ​ (b)   . An extension strategy is usually used during the growth phase in order to prolong the longevity of the product's life cycle ​ (c)   . Price reductions can be used as an extension strategy to attract more customers ​ (d)   . All products go through the typical model of the product life cycle, from its launch (introduction) to eventual withdrawal from the market ​ (e)   .

• True
• False

Match the following

• Goods

• The unique name of a product that distinguishes it from other products. 

• Brand loyalty

• The degree of customer knowledge and recognition of a particular brand in order to gain more customers.

• Brand

• Part of a firm’s marketing strategy in communicating the value of a brand and what the brand stands for.

• Brand awareness

• The degree of customer devotion to a particular brand.

• Brand development

• These are physical products, e.g. handbags, cars, and laptops.

Match the following

• Question marks

• The expected earning potential of a brand, i.e. the likely future earning potential (value) of a particular brand

• Brand value

• Developed by the Boston Consulting Group, this visual marketing management tool is used to analyse a firm’s product portfolio.

• BCG matrix

• Products in the BCG Matrix with high or rising market share in a high growth market.

• Cash cows

• Products in the BCG Matrix with high market share in a low growth (mature) market. They are the largest cash earners for a business. 

• Stars

• Also known as problem children, these are products in the BCG Matrix that have low market share in a high growth market. 

Which term refers to a firm’s marketing strategy in communicating what the brand stands for and the value (benefits) of its brand?

• Brand identity

• Brand development

• Brand value

• Brand awareness

Which term describes a unique symbol or identity for a product or business?

• Brand identity

• Brand name

• Brand value

• Brand awareness

Which term refers to the expected earning potential of a particular brand, i.e. how much the brand name is worth?

• Brand identity

• Brand name

• Brand value

• Brand awareness

Match

• Product life cycle

• This occurs when customers buy their preferred brand of a particular product, and they are reluctant to switch to another brand or product

• Maturity

• The strategy of growing and expanding a trademark to build market share for a particular brand or product

• brand loyalty

• Marketing theory that depicts the phases a typical product goes through during its commercial existence, from launch to withdrawal.

• brand development

• A unique graphical representation (such as symbol, font or graphic) of a business or its brand.

• Logo

• The stage on the PLC when sales revenues are at or near their maximum and there is little scope for any further growth.

Products are sold from one business to another to further the production process are known as

• capital goods

• consumer goods

• durable goods

• perishable goods

The marketing staretegy used to give a product a unique or distinctive aspect so that customers can distinguish it from those offered by competitors is known as

• Brand awareness

• Brand development

• New product development

• Product diffentiation