1. What is a product?

A product is the item offered for sale. A product can be a service or an item.

2. How do tangible products differ from intangible products?

Tangible assets are usually physical objects (like equipment and inventory) while intangible

assets are valuable assets that can't be touched (such as trademarks). Both tangible and

intangible assets have value and can be bought and sold. It is easier to establish the value of a

tangible asset than an intangible asset.

3. How do consumer products differ from producer products?

Consumers buy goods and services to satisfy their wants, and producers make goods and

services.

4. How do consumer durables, consumer perishable products and fast-moving consumer

goods differ from each other?

Consumer durables are long-lasting, expensive products like appliances or cars, while
consumer perishables are consumed quickly and include food and personal care items.
Fast-moving consumer goods (FMCGs) are low-priced products that sell quickly and are
frequently purchased, such as toiletries or packaged foods.

5. What is the product life cycle?

A product life cycle is the amount of time a product goes from being introduced into the market
until it's taken off the shelves. There are four stages in a product's life cycle—introduction,
growth, maturity, and decline. A company often incurs higher marketing costs when introducing
a product to the market but experiences higher sales as product adoption grows. Sales stabilize
and peak when the product's adoption matures, though competition and obsolescence may
cause its decline. The concept of product life cycle helps inform business decision-making, from
pricing and promotion to expansion or cost-cutting

6. What are the main stages in a typical product life cycle?

Intro- When a product first launches, sales will typically be low and grow slowly. In this stage,
company profit is small (if any) as the product is new and untested. The introduction stage
requires significant marketing efforts, as customers may be unwilling or unlikely to test the
product.
Growth Stage: If the product continues to thrive and meet market needs, the product will enter
the growth stage. In the growth stage, sales revenue usually grows exponentially from the
take-off point. Economies of scale are realized as sales revenues increase faster than costs and
production reaches capacity.

Maturity Stage: Eventually, the market grows to capacity, and sales growth of the product
declines. In this stage, price undercutting and increased promotional efforts are common as
companies try to capture customers from competitors. Due to fierce competition, weaker
competitors will eventually exit the marketplace – the shake-out. The strongest players in the
market remain to saturate and dominate the stable market.

Decline Stage: In the decline stage, sales of the product start to fall and profitability decreases.
This is primarily due to the market entry of other innovative or substitute products that satisfy
customer needs better than the current product.
7. What is meant by product portfolio?

A product portfolio is the menu of goods or services that a firm produces and offers for sale.
Analysis of product portfolios can give deep and nuanced insight into the workings of a
company and its earnings potential. Product portfolios will tend to be different for mature versus
younger growth companies.

8. Why is it important for a business to have a balanced product portfolio? A balanced

portfolio within an organization allows it to position itself so that it is ideally situated to take

advantage of its current and future market growth opportunities.

9. What are extension strategies?

An extension strategy is a practice used to increase the market share for a given product or
service and thus keep it in the maturity phase of the marketing product lifecycle rather than
going into decline. Extension strategies include rebranding, price discounting and seeking new
markets.
10. What is the relationship between the product life cycle, investment, profit and cash

flow?

As a product matures more and more, the cashflow become more positive therefore increasing
profit.
11. What is a brand?

A brand refers to a unique identifier such as a name, term, design, symbol, or other distinctive
element that sets apart the goods or services of one seller from those offered by others.

12. What is brand awareness?

Brand awareness is a marketing term for the degree to which consumers recognize a product

by its name. Ideally, consumers' awareness of the brand may include positive perceptions of the

qualities that distinguish the product from its competition

13. What is the difference between ‘brand loyalty’ and ‘brand development’?

Brand loyalty refers to the consumer's desire to continue to purchase a specific brand of
product. It is the consumer's perception of a particular brand or name, developed through
advertising and marketing efforts. Brand development is a strategic process of creating and
distinguishing your company's image, products and services from your competitors.
Development includes aligning your brand with your business objectives, communicating your
brand to your target market and updating or strengthening your brand as necessary.

14. What is brand value?

Brand value is the financial worth of a company. It influences the revenue of certain businesses

and markets and corresponds to customers’ awareness of a good.

15. Why is branding important for businesses? Branding allows you to build relationships

with your audience, which can eventually turn them into loyal customers. You can create a

brand that people actually care about and put yourself ahead of businesses that aren't using this

to their advantage.