Product Flashcards
What is a product?
A product is a good or service (functional item) which also has a personality
What is the product portfolio?
Mix of products the business produces and sells
PROS of a Product portfolio?
Spreads fixed cost
Greater EOS
Reduces risk
Opportunity for growth
What is Breadth and Depth?
Breadth (Number of product lines)
Depth(Number of product varieties )
What is Branding?
Establish a product with a separate identity in consumers’ minds
Branding importance and PROS ?
Brand loyalty
Differentiates Products
Help recognition
BRand image
Flexibility when making pricing decisions(Charge high prices)
Cons of Branding ?
Costs of advertising
Loss of brand value in one product affects all
Competition
R&D costs to keep improving
What is USP(Unique selling Point)?
Product or service has a feature which separates it from competition
Method of Product differentiation ?
Methods of Promo
Packaging
Form(Square carton for milk,Circle carton for milk)
Provision of add-ons(Insurance)
Quality and reliability
Factors affecting Packaging?
Design
Convenience (Straps to carry)
Protection(Doesn’t damage the product)
Information (nutrition facts)
Environmental factors (Paper,Plastic)
Cost
What is the product life cycle ?
Different stages in the life cycle of a product and sales achieved at each stage
Main components of a Product life cycle?
R&D
Introduction
Growth
Maturity(Peak)
Saturation(Start of a decline)
Decline
What are extension strategies and examples ?
Used to extend the life cycle of a product
Repositioning the product in the marketplace(Chocolate near Tills)
Relaunching the product
Repackaging
New features
Reasons for and against a product life cycle?
Identify when to launch new products
Extension strategies are needed
Does not predict sales
Management tool Not a decision
What is the Boston Matrix ?
To analyse Product portfolio with the use of a Matrix
Cash cows
Dogs
Problem child
Stars