Lecture 4 - Product Management and Lifecycle (X) Flashcards
define product line
a group of brands that are closely related in terms of the functions and benefits they provide
define product mix
the total set of products marketed by a company
define product portfolio
the total range of products offered by a company
define category management
the management of brands in a group, portfolio or category, with specific emphasis on the retail trades requirements
what is meant by the ‘width’ of a product mix
- this refers to the number of product lines the company has to offer
- e.g. if a company produces juices and soft drinks, its product mix is two products wide
what is meant by the ‘depth’ of a product mix
- depth refers to the variety within a single product line. This can mean different sizes, flavours, colours.
What are the 4 stages of a products life cycle
- Introduction
- Growth
- Maturity
- Decline
what are the prices at each stage of the PLC
Intro - high
Growth - lower
Maturity - lowest
Decline - rising
what is the strategic focus at each stage of the PLC
Intro - expand market
Growth - penetration
Maturity - protect/share innovation
Decline - Productivity
what are some benefits of the PLC
- product termination
- product planning
- growth projections
what are some drawbacks of the PLC
- cannot predict when each cycle will finish
- difficult to distinguish between stages
- competition can leap stages in the cycle
- any PLC is unpredictable to an extent
