Lecture 9 - Product Mangement

Question 1

What is product positioning?

Answer 1

How a brand is placed in the minds of the consumer relative to the competition

Question 2

What are the stages of the product life cycle?

Answer 2

Introduction
Growth
Maturity
Decline

Question 3

Product Life Cycle: Introduction

Answer 3

Introducing at a loss due to development. High Price at beginning.

Question 4

Product Life Cycle: Growth

Answer 4

Rapid sales, competition grows at this stage: Attractive. Some companies won’t remain. Profits maximized at top of growth. Flanker brands

Question 5

Product Life Cycle: Maturity

Answer 5

Plateau. Not growing or dropping. Environment, Substitutes. Decrease price.

Question 6

Product Life Cycle: Decline

Answer 6

Profits can go into negative.

Decisions: Milk it dry, add new resources, harvest, reinvent brands, enter new markets

Question 7

Boston Consulting Matrix

Answer 7

Two axis
Y Axis is market growth
X Axis is market share (Left is 10x right is 0.1) middle equal

Question 8

Boston Consulting Matrix:Star

Answer 8

High Growth high market share
What is going to keep it there? Invest in it, R&D
Example: Netflix

Question 9

Boston Consulting Matrix: Problem Child

Answer 9

High Growth - low Market share
Try to move over to star - invest in it
Example: Fanta

Question 10

Boston Consulting Matrix: Dog

Answer 10

Low Growth - low market share
Milk dogs not cows - don’t put any resources into a dog
Example:BlockBuster

Question 11

Boston Consulting Matrix: Cash Cow

Answer 11

Low Growth - High market Share. Massage it an keep it happy. Mature market, Take profits and invest in star
Example: Movie Theatre