Managing A Range Of Products Flashcards
What is a product line?
A product line is a range of similar products with similar characteristics and customers.
Should a business just have just one type of product?
No a business needs a variety of products, a mixed product portfolio
What is a product mix?
A product mix is a combination of a businesses product lines.
Why does a business aim to have a varied product mix all at different stages of the product life cycle?
If one falls then they still have the others to depend on.
What are two aspects of a Question Mark in the boston matrix?
New products, can succeed or fail, need heavy marketing. Low market share - high market growth.
What are two aspects of a Dog in the boston matrix?
Low market share and market growth, basically a lost cause, not successful.
What are two aspects of a Cash Cow in the boston matrix?
High market share - low market growth, in the maturity phase of the product life cycle, low costs as mass produced, bring in a lot of money.
What are two aspects of a Star in the boston matrix?
High market growth and share, in growth phase of product life cycle, future cash cows.
Why is the boston matrix useful?
It helps a business to see if they have a good balanced product portfolio, business can then for example use money from cash cows to invest into question marks so they become stars.
What is a drawback of the Boston matrix?
It can’t always predict what will happen, other factors can affect a product such as the economy.
Define The Marketing Mix
The marketing mix is a combination of factors that effect a customers decision to buy a product. Price, product, place, promotion. It needs to be realistic to their business however.
