Lecture 5 (Product) Flashcards
What is an augmented product ?
− Augmented product considers the auxiliary services such as warranty, after sale services etc.
What is an unsought product ?
Products you tend not to think of
What is a product line ?
− A product line is a group of products that are closely related because they function in a similar manner, are sold the same customer groups, are marketed through the same types of outlets, or fall within given price ranges.
o This could be a product line of painkillers, or cosmetics
What is a product mix ?
Product mix consists of all the products line and items that a particular seller offers for sale
What are the 4 dimensions of a companies product mix ?
Width- Number of different product lines
Length- Total number of items
Depth- Number of versions of each product in the line
Consistency- How closely related product lines are
What is portfolio managing ?
Process of managing groups of products/product lines
What 4 dimensions did boston consulting group develop for products and product lines ?
cash cow cell- Market growth rates tend to be low and relative market share is high.
Star cell-Market growth rate is high and relative market share is high
Question mark cell-High market growth rate and low relative market share
Dog cell- Low relative market share and low market growth rate
What does a company need to be considered strong by the Boston consulting group ?
High market share
What is needed for a ‘dog’ product to generate profit ?
Price freedom
What defines a breakthrough innovation ?
Currently market impact is minimal, but this may change in the future.
There are 8 stages in product development. List them.
Idea generation Idea screening Concept development and testing Marketing strategy development Business analysis Product development Test marketing Commercialisation
What is an innovator ?
are the people you initially want to pitch your product to, because the mainstream won’t want to buy it. Innovators have a specific socio-demographic profile. They tend to be younger, more educated, more affluent etc.
What is a lagging adaptor ?
− unwilling to take any risk whatsoever and thus do not invest in a product until it has become very mainstream.
What strategic objective should a company take with a dog cell ?
Divestment
What strategic objective should a company take with a question mark cell ?
♣ Build selectively
♣ Divest the rest
