Cambridge IGCSE Business (0264) syllabus reference: 3.3.1
Success criteria - by the end of this topic you can:
- explain the importance of brand image and packaging
- explain the advantages and disadvantages of developing new products
- interpret the product life cycle and recommend an extension strategy
The marketing mix is the four Ps: product, price, place and promotion.
Key terms
Brand image - the image or identity customers associate with a brand.
Product life cycle - the stages a product passes through from introduction to decline.
Extension strategy - a way of extending the maturity stage of a product before it declines.
Brand image matters because it builds loyalty, allows higher prices and helps new products succeed. Packaging protects the product, gives information, attracts attention and supports the brand.
Developing new products
| Advantages | Disadvantages |
|---|
| Unique selling point and higher prices | Research and development is costly |
| Replaces declining products | Many new products fail |
| Spreads risk across more products | Takes time before sales cover costs |
Stages of the product life cycle