Marketing Essentials

Section 2: Sustaining Product Sales

After You Read Online Action

Key Terms and Concepts

1. The focus is the image a product projects. The goal is to set the product apart from the competition.
2. Stress price and quality, stress product features and benefits, stress unique characteristics, compare the product to the competition, show a relationship to other products in the line.
3. Category management is a process that involves managing product categories as individual business units.

Academic Skills

4. Product A is less profitable. Product A: $110 (RP) X 19,500 units = $2,145,000; ($65 + $4.30) X 19,500 units = $1,351,350 costs; $2,145,000 - $1,351,350 = $793,650 net profit.
5. Product B: $72 (RP) X 56,000 units = $4,032,000; ($38 + $7.50) X 56,000 units = $2,548,000 costs; $4,032,000 - $2,548,000 = $1,484,000 net profit.
6. All reports should demonstrate an understanding of the product's life cycle.