Product, brand and packaging Cambridge IGCSE Business Studies revision
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In plain words
The product is the heart of the marketing mix: if it does not meet a need, no price or advert will save it. It may be a good, which you can touch, or a service, which you cannot.
What a customer buys is more than the thing itself. They buy the name on it and the box it comes in too.
6 things to know
- Benefits of developing new products: they attract new customers, can be sold at higher prices at first, replace products that are declining, and spread risk.
- Limitations: research and development is costly and slow, the product may fail, and competitors may copy it.
- A brand is a name, logo or design that identifies a product and sets it apart from competitors'.
- A strong brand image builds customer loyalty, allows a higher price, and makes it easier to launch new products under the same name.
- Packaging protects the product, gives information (contents, instructions), promotes it with eye-catching design, and makes it easy to transport and display.
- A unique selling point (USP) is a feature that makes a product different from its competitors.
Tips and tricks
- Packaging has several jobs. Give more than "to protect it": information and promotion are marks too.
- A brand is worth money because it lets a business charge more for the same product. That is added value.
It lands in your notebook with its questions as flashcards.
Product, brand and packaging: 5 questions and answers
These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.
Which is an example of a service?
A service cannot be touched or stored.
What is a brand?
It gives the product an identity.
Which is a benefit of brand loyalty?
Loyal customers give steady, repeat sales.
Which is a limitation of developing new products?
Money is spent before any sales are made, and the product may fail.
What is a unique selling point?
It gives customers a reason to choose this product.
Quiz
5 questions
Tap an answer and you’ll see straight away whether it’s right, and why.
Worksheet
3 questions, 8 marks. Write your answers on paper, then check them.
Product, brand and packaging
Cambridge IGCSE Business Studies 0450 · 8 marks · papermunch.org
Name ______________________________ Date ______________
State two functions of packaging.[2]
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Any two of: protecting the product, giving information about it, promoting it, making it easy to transport and display.
Explain two benefits to a business of having a strong brand image.[3]
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Customers trust the brand and keep buying it, which gives the business loyal, repeat sales. They are also willing to pay a higher price than for unbranded products.
Explain one benefit and one limitation of developing a new product.[3]
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Benefit: it can attract new customers and replace sales lost from older products. Limitation: research and development is expensive, and the product may not sell.
Answers: Product, brand and packaging
- 1. Any two of: protecting the product, giving information about it, promoting it, making it easy to transport and display.
- 2. Customers trust the brand and keep buying it, which gives the business loyal, repeat sales. They are also willing to pay a higher price than for unbranded products.
- 3. Benefit: it can attract new customers and replace sales lost from older products. Limitation: research and development is expensive, and the product may not sell.