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Description
Flashcards by Ashleigh-Jade Jones, updated more than 1 year ago
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Created by Ashleigh-Jade Jones
almost 7 years ago
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| Question | Answer |
| Product: (Key Features) | -functional -reliable -durable -nice appearance -good value -safe and abides legislation -suitable packaging -convenient -fashionable |
| Business 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 |
| The Product Life Cycle Model: (& examples) |
D - ?
I - apple watch
G - iphone, sushi restaurants
M - marmite
S - italian restaurants
D - CD's
Image:
Img 0002 (image/jpeg)
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| The 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) |
| Extension 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) |
| The Boston Matrix: |
a method of analysing the products in a firms product portfolio based on market share and growth
Image:
Download (1) (image/png)
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| Dog: | -low market share in a market with low growth -no longer generating profit |
| Question Mark/Problem Child: | -low market share in a fast growing market (high) -future uncertain so may succeed or fail |
| Cash Cow: | -high market share in a slow growing market (low) -good/established product generates profit |
| Star: | -high market share in a fast growing market (high) -generates high profit |
| Link Between Product Life Cycle and Boston Matrix: | -introduction -> question mark/problem child -growth -> star -maturity -> cash cow -decline -> dog |
| Decisions 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 |
| Product Portfolio Analysis: | the process of analysing a business' existing product range e.g. The Boston Matrix |
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