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Product
Business Studies
(A Level)
The mix of products that the
business produces and sells.
(Definition)
Spread fixed costs
Allow for greater economies of scale
Allow targeting of wider markets
Reduces risk
Smoothens out overall sales
Create opportunities for growth
The varieties within each branded
product.
(Definitions)
Number of product lines in product
portfolio
Having product breadth and product depth
increases the chances of repeat purchases and
allows to target different market niches.
(Definition)
A distinctive identity for a product
with which users recognise, this
allows them to differentiate from
competitors.
Marketing is often brand driven.
Advantages Disadvantages
• Create increased customer
loyalty
• High cost of advertising
• Increase price inelasticity of
demand
• Loss of brand value for one
product can affect a whole range
of similarly branded products
• Separate products from herd • Brands invite competition
• Increase business value • High cost of research and
development
(Definition)
Features that allow a
product to be
differentiated from rivals /
competition
Examples:
• Hole in polo
mint
• IPad design
• Dysons vacuum
(Definition)
Making a product different and
stand out from competition
• Promotion
• Packaging (e.g. Eco-packaging)
• Form (e.g. appearance)
• Add-ons
• Quality
• Reliability
Method of Differentiation
Differentiation helps create customer loyalty and gives a firm
more control over the pricing strategies used.

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Product (Product Portfolio, Branding, USP, Product Depth and Breadth, Product Differentiation)

  • 2. The mix of products that the business produces and sells. (Definition)
  • 3. Spread fixed costs Allow for greater economies of scale Allow targeting of wider markets Reduces risk Smoothens out overall sales Create opportunities for growth
  • 4. The varieties within each branded product. (Definitions) Number of product lines in product portfolio
  • 5. Having product breadth and product depth increases the chances of repeat purchases and allows to target different market niches.
  • 6. (Definition) A distinctive identity for a product with which users recognise, this allows them to differentiate from competitors.
  • 7. Marketing is often brand driven. Advantages Disadvantages • Create increased customer loyalty • High cost of advertising • Increase price inelasticity of demand • Loss of brand value for one product can affect a whole range of similarly branded products • Separate products from herd • Brands invite competition • Increase business value • High cost of research and development
  • 8. (Definition) Features that allow a product to be differentiated from rivals / competition Examples: • Hole in polo mint • IPad design • Dysons vacuum
  • 9. (Definition) Making a product different and stand out from competition
  • 10. • Promotion • Packaging (e.g. Eco-packaging) • Form (e.g. appearance) • Add-ons • Quality • Reliability Method of Differentiation Differentiation helps create customer loyalty and gives a firm more control over the pricing strategies used.