Chapter 3 Product life cycle Flashcards
Chapter 03
If a product is just being launched onto the market, it is said to be in which phase of the product life cycle?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
Growth
Maturity
Introduction
Decline
Chapter 03
What is the Boston Matrix?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
A model or tool which analyses a product portfolio according to the growth rate of the whole market and the relative market of a product within that market. A product is placed in one of the 4 elements
Chapter 03
What is meant by the term product portfolio?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
The range or combination of products that a business sells
Chapter 03
What is product portfolio analysis?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
Investigation of the combination of products sold by a business
Chapter 03
How can managing a product portfolio benefit a business?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
- The company will know which part of the product life cycle their products are at
- The company will know which part of the boston matrix their products are in
- The company will be able to see if they need to develop new products
- The company will be able to see if they need to get rid of old products that are no longer performing well
Chapter 03
What are the elements of the Boston Matrix?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
Cash Cow
Star
Dog
Problem Child
Chapter 03
What are the extension strategies a business might use to extend the product life cycle?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
- Re-branding
- Changing the product in some way
- Increase promotion such as advertising
- Lower prices
Chapter 03
What are the phases (or stages) of the product life cycle?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
Growth
Maturity
Saturation
Decline
Chapter 03
What are the three additional phases (or stages) of the product life cycle
Edexcel 2BS01 Business Studies GCSE Unit 3.1
Research & Development
Launch
Withdrawal
Chapter 03
What is research and development?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
The process of scientific and technological research and then development of the findings of that research before a product is launched
Chapter 03
What is the product life cycle?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
The stages through which a product passes from its development to being withdrawn from sale; the phases are research and development, launching the product, growth, maturity, saturation and decline
Chapter 03
Why is using the Boston Matrix a vital tool for a business? (How can it benefit a business)?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
- Helps businesses understand how their products are doing
- Can help the business balance their product portfolio
- The company will be able to see if they need to develop new products
- The company will be able to see if they need to get rid of old products that are no longer performing well
Chapter 03
How do extension strategies extend the product life cycle?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
They cause the sales to increase
Chapter 03
What is an extension strategy?
Edexcel 2BS01 Business Studies GCSE Unit 3.1
A method used to increase the life of a product and prevent it falling into decline
