1.3.5 Marketing strategy's Flashcards
What is a product portfolio?
Looks at the range of products and brands a firm has under its control.
Name three advantages of a product portfolio.
Can appeal to a wider target market
Can spread risk
Can replace products that are near end of life
Name three disadvantages of a product portfolio.
Expensive and time consuming
Can lead to high competition with other brands
May not help sales if market is on the decline
What is product life cycle?
A technique used to track the stages a product goes through during its life.
Name three positives of a product life cycle.
Inform investment decisions
Spot trends
Manage product portfolio
Name three negatives of a product life cycle.
Accuracy
Products don’t always go through all the stages
Some products stay in maturity for a while.
Draw a product life cycle diagram.
What is the Boston matrix?
Considers products within the portfolio in relation to market share and market growth.
Draw the Boston matrix.
What are the four categories in the Boston Matrix?
Rising star
Cash cow
Question mark
Dog
What are the features of a rising star?
High market share, high market growth.
High sales= high revenue
High investment required
Funded by cash cows
What are the features of a cash cow?
High market share, Low market growth
Established and successful
Want as many cash cows as possible
Profits from cash cows
Little investment required
What are the features of a Question mark?
High market growth, low market share
Potential to be successful
Require high levels of attention
Could be a rising star if increase in market share
What are the features of a dog?
Low market growth, low market share
Market isn’t growing
Profit is low, usually breakeven= keep
Most are sold/discontinued
Name two positives of the boston matrix.
Useful tool to analyses the performance of products
Helps them to make marketing decisions and investments
