Flashcards
3.3.4: Making marketing decisions: using marketing mix (PRODUCT)
Cards in this deck (13)
- 1Product: (Key Features)-functional
-reliable
-durable
-nice appearance
-good value
-safe and abides legislation
-suitable packaging
-convenient
-fashionable - 2Business to Business/Business to Consumer?:B2B:
-likely to sell in bulk
-discounts
-functional
-longer credit terms
B2C:
-sell individually
-pricing is higher (greater margins)
-displays/show rooms
-pay up front or on a payment plan - 3The Product Life Cycle Model: (& examples)D - ?
I - apple watch
G - iphone, sushi restaurants
M - marmite
S - italian restaurants
D - CD's - 4The Product Life Cycle: (Expanded)*Development: market research, idea of product developed, prototypes made (high expense in research and development, no profit due to product not available)
*Introduction: slow sales begin (high expenditure in promotion and advertising, no profit due to still high expenditure)
*Growth: increase speed of sales if promotion was successful (start breaking even on costs as smaller expenditure & greater profits)
*Maturity & Saturation: sales slow, should expand product range (lower costs as no expenditure in promotion, larger profits)
*Decline: sales fall, product is less popular, business must decide on fate of product (withdraw/extension) (minimal costs, lower profit) - 5Extension Strategies:*Strategies taken to extend the life cycle of a product
Examples:
-re-brand (packaging -> marmite)
-price/size adjustment (chocolate bars/iphone)
-updates (iOS)
-new products (robinsons shots)
-open up to larger markets (market development -> Johnson's, Yorkie) - 6The Boston Matrix:a method of analysing the products in a firms product portfolio based on market share and growth
- 7Dog:-low market share in a market with low growth
-no longer generating profit - 8Question Mark/Problem Child:-low market share in a fast growing market (high)
-future uncertain so may succeed or fail - 9Cash Cow:-high market share in a slow growing market (low)
-good/established product generates profit - 10Star:-high market share in a fast growing market (high)
-generates high profit - 11Link Between Product Life Cycle and Boston Matrix:-introduction -> question mark/problem child
-growth -> star
-maturity -> cash cow
-decline -> dog - 12Decisions Based Off of the Boston Matrix Results:Dog:
-possible extension strategy
-withdraw product from market
Question Mark/Problem Child:
-investment in promotion to boost sales
Cash Cow:
-reap profits with limited spending and use elsewhere e.g. Question Mark or Star
Star:
-invest in advertising/promotion to maintain or increase sales/market share - 13Product Portfolio Analysis:the process of analysing a business' existing product range e.g. The Boston Matrix
Information
- Description
- product, product life cycle, extension strategies, boston matrix, links between both models, product portfolio analysis
- Created by
- Ashleigh-Jade Jones · Apr 2017
- Updated
- Apr 6, 2018
- Views
- 23
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