Distribution +Product Life Cycle (1.3.4/1.3.5)

Question 1

What is Distrubution?

Answer 1

Products in the right place at the right time in the right quantities

Question 2

What are the 4 Distrubution Channels?

Answer 2

Maufacturer-Wholesaler-Retailer-Customer
Manufacturer-Retailer-Customer
Manufacturer-Agent-Customer
Manufacturer-Customer

Question 3

What is a Manufacturer?

Answer 3

Producer of a Product e.g. Apple, Nike, Dyson

Question 4

What is a Wholesaler?

Answer 4

Sells manufactured items to other businesses (retailers) in bulk e.g Costco

Question 5

What is a Retailer?

Answer 5

Sells manufactured items to customers e.g. ASOS

Question 6

What is an Agent?

Answer 6

Specialises in a particular product and sells it to customers

Question 7

How many distribution channels will businesses use?

Answer 7

Businesses will use multiple distribution channels to maximize sales

Question 8

What is the Product Life Cycle?

Answer 8

Its the life span of a product and shows the different stages of the products life.

Question 9

What are the 4 Stages to the Product Life Cycle? There is a small one at start as well

Answer 9

(R+D), Introduction, Growth, Maturity, Decline

Question 10

What are extension strategies of the Product Life Cycle?

Answer 10

They are used by businesses to extend the life span of a product or service.

Question 11

Examples of extension strategies of the Product Life Cycle?

Answer 11

-Lowering price
-Re-Branding
-Updated Features
-New Promotion
-New Target Market
-New uses

Question 12

What is the Boston Matrix?

Answer 12

Portfolio of Products can be analyzed using the Boston Group consulting Matrix. This categories the products into 4 different areas based on Market Growth and Share.

Question 13

What are the four categories of the Boston Matrix?

Answer 13

Question Marks, Stars, Cash Cows, and Dogs

Question 14

What are the Question Marks in the Boston Matrix?

Answer 14

Introduction phase and it is products with low market share and high opportunity for growth. Have potential but may need help to grow.

Question 15

What are the stars in the Boston Matrix?

Answer 15

The Stars are the Growth Phase and its when the products have high growth and are strong compared to competition. They need heavy investment to sustain growth.

Question 16

What are the Cash Cows in the Boston Matrix?

Answer 16

Low Growth products with high market share. Mature, successful products with relatively little need for investment.

Question 17

What are the Dogs in the Boston Matrix?

Answer 17

The Dogs represent the Products that have a low market share and are unattractive. They are in Low-growth Markets and may not generate enough to break-even so aren’t really worth investing in. They are the Decline Stage as Product goes out of trend.

Question 18

Why is it important to have products at all different stages of the life cycle?

Answer 18

This is because as one declines you will have one in the growth stage so you always have a successful one as it rotates and you aren’t losing out on anything.