Marketing Essentials

Section 2: Sustaining Product Sales

After You Read Online Action

Reviewing 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.

Integrating Academic Skills

4. Product A is less profitable. Product A: $110 (RP) X 19,500 units = $2,145, 00; ($65 + $4.30) X 19,500 units = $1,351,350 costs; $2,145,00 - $1,351,350 = $793,650 net profit.
   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.
5. Reports will vary; all reports should demonstrate an understanding of the product’s life cycle.