Ch. 19 The Marketing mix: Product and Packaging

Consumer Goods
goods which are consumed by people.
They can be many product that could range from perishable goods to furniture.
Consumer Services
Services that are produced for the people.
e.g. repairing cars, education and hairdressing
Producer Goods
Goods produced for other businesses to use.
e.g. lorries, machinery and components
Producer Services
Services that are produced to help other businesses.
e.g. accounting, insurance and advertising
Brand Name
is the UNIQUE NAME of a PRODUCT that DISTINGUISHES it from OTHER BRANDS.
Brand Loyalty
is when CONSUMERS keep buying the SAME BRAND AGAIN and AGAIN, instead of choosing a competitor’s brand.
Brand Image
is an IMAGE or IDENTITY given to a PRODUCT which gives it a PERSONALITY of its own and DISTINGUISHES it from its competitor brands.
Packaging
is the PHYSICAL CONTAINER or WRAPPING for a product. It is also used for PROMOTION and SELLING APPEAL.
The Product Life Cycle
describes the STAGES a PRODUCT will PASS THROUGH from its INTRODUCTION, through its GROWTH until it is MATURE and then finally its DECLINE.
Development
Stage where market research take place before a prototype is made and tested. This all happen before the product is launched on the market. There will be no sales at this time.
Introduction
The stage where the product is LAUNCHED on the MARKET.
Sales will grow slowly. No Profit is made at this stage since the development costs have not yet been covered.
Growth
The stage where SALES grow RAPIDLY. Profits are started to be made.
Maturity
The stage where SALES increase SLOWLY. Profits are at their highest.
Saturation
The stage where SALES are starting to STABILISE at their highest point. Profit started to fall due to high competition.
Decline
The stage where SALES are DECREASING. The product is not profitable any more.