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

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

• Brand awareness

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

• Brand

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

• Brand development

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

• Brand loyalty

• The degree of customer devotion to a particular brand.

Match the following

• BCG matrix

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

• Brand value

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

• Question marks

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

• Cash cows

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

• Stars

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

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

• 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.

• brand loyalty

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

• brand development

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

• Maturity

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

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