GCSE Business Revision

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  • Created by: nevewhinn
  • Created on: 09-01-17 22:40
What goes on the y and the x axis of a Product Life Cycle graph?
x axis - time , y axis - sales
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What is the first stage of the Product Life Cycle?
Research and Development (R&D)
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What is the second stage of the Product Life Cycle?
Introduction / Launch
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What is the third stage of the Product Life Cycle?
Growth
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What is the fourth stage of the Product Life Cycle?
Maturity
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What is the fifth stage of the Product Life Cycle?
Decline
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What is the Product Life Cycle?
The stages a product passes through from its development to eventually being withdrawn from the market
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Name some examples of extension strategies.
1. Introducing different varieties / 2. Modifying the product / 3. Updating packaging / 4. Increasing advertising / 5. Cutting prices / 6. New target market
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What is Research and Development (R & D)?
The result of scientific research by firms into developing their products and processes, making them more effective
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What does R & D often result in?
A prototype, which is a working model
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Name some examples of industries based on scientific research
Cars, aeroplanes, sportswear, cosmetics and pharmaceuticals
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What are the aims of R & D?
1. Develop USP giving compet. adv. / 2. Better quality for to meet cust. needs / 3. Efficient producing to reduce unit costs / 4. Premium prices / 5. Reputation for innovation
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What are the benefits of good design?
USP, competitive advantage and can charge higher prices
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What is branding?
Giving a product a unique name and identity
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What is a brand?
A named product which consumers see as being different from other product, which consumers identify and associate with
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What is a brand image?
The idea / impression that customers have in their minds about a brand
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What is a generic product?
An unbranded product made by a number of businesses, where there is no (or very little) difference between products
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What is an own brand?
A product sold under the brand name if supermarket or chain retailer
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What are the benefits of branding?
Brand loyalty, premium prices, greater customer awareness, and increased sales and market share
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What is the benefit of brand loyalty?
Customers will repeat purchase because they like the look, taste, quality or image of your product. If it becomes established, it may encourage product trial with other products with that name
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What is the benefit of premium prices?
A strong brand means a business can charge a higher price than competitors
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What is the benefit of greater customer awareness?
Brands tend to be advertised heavily, so customers become more aware of the product and their advantages
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What is the benefit of increased sales and market share?
Sales are more likely to be higher than non-branded products, because customers trust them more
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What is repeat purchase?
This occurs when a customer buys a product more than once
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What happens in the introduction stage?
This stage is the most expensive. The size of the market for the product is small, which means sales are low, although they will be increasing.
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What happens in the growth stage?
strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase. They can then invest more money
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What happens in the maturity stage?
the product is established and the aim for the manufacturer is now to maintain the market share they have built up. This is probably the most competitive time for most products They also need to consider any product modifications to give them a CA
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What happens in the decline stage?
The market for a product will start to shrink This shrinkage could be due to the market becoming saturated (i.e. all the customers who will buy the product have already purchased it), or because the consumers are switching to a different product
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What is market research?
The process of gaining information about customers, competitors and market trends, through primary and secondary research
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What is primary / field research?
Gathering new data first hand which is tailored to find out the specific information you require
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What is secondary / desk research?
Gathering data and information that has already been collected before for a different purpose
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What is qualitative data?
Information about opinions, judgements and attitudes
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What is quantitative data?
Data that can be expressed as numbers and can be statistically analysed
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What is market segmentation?
The process of splitting a market into smaller sub-groups of consumers with similar buying habits
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What is a market segment?
Part of a market which contains a group of buyers with similar buying habits
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How can a market be segmented?
Age, gender, income, geographical region, ethnicity, religion or socio-economic group
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What is a market map?
A diagram which shows the range of possible positions for two features of a product. It allows businesses to identify where the market is crowded and where there might be a gap in the market, allowing them to position their product more effectively
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What is a gap in the market?
This occurs when no business is currently serving the needs of customers for a particular product
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What is the marketing mix?
A combination of factors which help a business take into account customer needs when selling a product
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What are the 4 Ps?
Place, product, price and promotion
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What is a product?
The good / service sold by the business
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What is a price?
The amount customers are charged to purchase the product. Either a low penetration price or a high skimming pricing strategy
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What is a place?
Having a product available to customers where they want to buy it
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What is promotion?
Raising awareness and informing customers about a product and persuading them to buy it through methods including advertising and special offers
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What is customer service?
The experience that a customer gets when dealing with a business and the extent to which that experience meets and exceeds customer needs and expectations
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What does good customer service include?
Accuracy, on-time service / delivery and dealing well with complaints
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What does good customer service lead to?
Repeat purchase
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What does poor customer service lead to?
Damaged reputations and lower sales, therefore less profit
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Card 2

Front

What is the first stage of the Product Life Cycle?

Back

Research and Development (R&D)

Card 3

Front

What is the second stage of the Product Life Cycle?

Back

Preview of the front of card 3

Card 4

Front

What is the third stage of the Product Life Cycle?

Back

Preview of the front of card 4

Card 5

Front

What is the fourth stage of the Product Life Cycle?

Back

Preview of the front of card 5
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