4.5 The four Ps (product) Flashcards
The Boston matrix
The Boston matrix (Boston Consulting Group matrix) is a marketing tool for analysingthe productportfolio of a business. It shows whether products have high or low market share and operate in high or low market growth industries.
Brand awareness
Brand awareness measures the extent to which potential customers or the general public recognise a particular brand. It isusuallyexpressed as a percentageofthe samplesurveyed.
Brand development
Brand development is a long-term product strategy that involvesstrengthening the name and image of a brand to boost its appeal and sales.
Brand loyalty
Brand loyalty occurs when customers buy the same brand of a product time and time again. They are devoted to the brand since they havebrand preference over other brand names.
Brand value
Brand value refers to the premium that customers are willing to pay for a brand over and above the valueof the product itself, i.e. customers are willing to pay more for a reputable brand.
Branding
Branding refers to the use of an exclusive name, symbol or design to identify a specific product or organization. It differentiatesa product from similar ones offeredby rival firms
Cash cow
Cash cow is a term used by the Boston Consulting Group to referto any product that generates significant money due to its large market share in a mature market.
Consumer goods
Consumer goods are products bought for personal consumption, such as consumer durables (e.g. furniture, computers and cars) mdperishables (e.g.food and flowers).
Dogs
Dogs are products in the BCG matrix that have low market share and operate in low growth or stagnant markets. Hence, dogsdo not generatemuch cash or profitfor abusiness.
extension strategy
An extension strategy is an attempt by marketers to lengthen the life cycleof a particular product, typically used during the maturity or early decline stagesof the product’s lifecycle.
Product
Product refers to any physical or non-physical item (good or service) that is purchased by commercial or private customers.
Product differentiation
Product differentiation refers to any strategy used to make a product appear to be distinct from others, such as quality, branding and packaging.
product life cycle (PLC)
The productlife cycle (PLC) is the typical process that products go through from their initial design and launch to their decline and eventual withdrawal. Different products undergo each of the five stages (research, launch, growth, maturity and decline) at varying speeds.
Product portfolio
Product portfolio refers to the range of products or strategic business units owned and developed by an organization at any one point in time.
Question marks / problem children
Question marks (or problem children) are products in a BCG matrix that compete in high market growth industries, but have low market share. They consume lots of cash but do not generate much profit, ifany.
