5.5 (1) - products and pricing

Question 1

Product portfolio

Answer 1

The collection of products that a firm produces

Question 2

Boston matrix

Answer 2

A way of analysing a product’s share and growth in their market

Question 3

Dog

Answer 3

A product which has a low market share in a low-growth market

Question 4

cash cow

Answer 4

A product which has a high market share in a low-growth market

Question 5

question mark

Answer 5

A product which has a low market share in a fast-growth market

Question 6

star

Answer 6

A product which has a high market share in a fast-growth market

Question 7

product life cycle

Answer 7

Shows how the sales of a product may change over time

Question 8

extension strategies

Answer 8

Attempts to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle

Question 9

what do you include in product development? -5

Answer 9

-reliability
-performance
-price
-expected sales
-cost of development

Question 10

product differentiation

Answer 10

businesses make their products stand out from the competition.

Question 11

different ways of using product differentiation -2

Answer 11

-building a brand image
-Unique Selling Point (USP)

Question 12

new products - stages of development -4

Answer 12

-Generate an idea
-Screen the idea — financial issues
-Develop the product
-Trial the product

Question 13

what is a product portfolio for?

Answer 13

to check how each of the business’s different products are performing and whether any changes need to be made.

Question 14

ways of analysis product portfolio

Answer 14

Boston matrix

Question 15

balanced portfolio

Answer 15

the business will want a mix of different types of products at different stages of development, in order to continue profitability.

Question 16

product life cycle stage 1

Answer 16

development - tested and tried before launching

Question 17

product life cycle stage 2

Answer 17

introduction - launched to potential customers and sales begin.

Question 18

product life cycle stage 3

Answer 18

growth - sales start to increase

Question 19

product life cycle stage 4

Answer 19

maturity - sales slow down and the business introduces new features

Question 20

product life cycle stage 5

Answer 20

decline - sales start to fall and the business needs to decide whether money should be spent to promote the product or not

Question 21

what Variations are within the product life cycle -2

Answer 21

-length of time that a product will take
-marketing mix changes at the different stages of the product life cycle.

Question 22

extension strategies

Answer 22

attempts to maintain the sales of a product and prevent it from entering the decline stage of the product life cycle.

Question 23

different extension strategies -5

Answer 23

-cutting the price,
-spending more on advertising
-updating the packaging
-different features
-trying to find new customers