5.5 (1) - products and pricing Flashcards
Product portfolio
The collection of products that a firm produces
Boston matrix
A way of analysing a product’s share and growth in their market
Dog
A product which has a low market share in a low-growth market
cash cow
A product which has a high market share in a low-growth market
question mark
A product which has a low market share in a fast-growth market
star
A product which has a high market share in a fast-growth market
product life cycle
Shows how the sales of a product may change over time
extension strategies
Attempts to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle
what do you include in product development? -5
-reliability
-performance
-price
-expected sales
-cost of development
product differentiation
businesses make their products stand out from the competition.
different ways of using product differentiation -2
-building a brand image
-Unique Selling Point (USP)
new products - stages of development -4
-Generate an idea
-Screen the idea — financial issues
-Develop the product
-Trial the product
what is a product portfolio for?
to check how each of the business’s different products are performing and whether any changes need to be made.
ways of analysis product portfolio
Boston matrix
balanced portfolio
the business will want a mix of different types of products at different stages of development, in order to continue profitability.
product life cycle stage 1
development - tested and tried before launching
product life cycle stage 2
introduction - launched to potential customers and sales begin.
product life cycle stage 3
growth - sales start to increase
product life cycle stage 4
maturity - sales slow down and the business introduces new features
product life cycle stage 5
decline - sales start to fall and the business needs to decide whether money should be spent to promote the product or not
what Variations are within the product life cycle -2
-length of time that a product will take
-marketing mix changes at the different stages of the product life cycle.
extension strategies
attempts to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle.
different extension strategies -5
-cutting the price,
-spending more on advertising
-updating the packaging
-different features
-trying to find new customers
