Product Flashcards
Types of products
Consumer, goods bought for consumption of general public
Industrial products, goods bought for the use in business processes
Examples of consumer product
- convenience items, milk, newspaper
- shopping goods, microwave
-Specialty products,sports cars
Examples of industrial products/where they are used
- larger transactions
- advertising
- packaging and branding less important than performance
- value for money
- B2B is critical
Product features and design
- reliability
- functions and compatibility
- size and weight
- conviniemce of use
- fashion
- design
- durability
- value for money
What is product portfolio
Relates to the range of products or brands to decide if new products should be added/made
What does product portfolio analysis include
Product lifecycle
Boston matrix
New product development
Each stage of product lifecycle
1) research and development- money invested into product testing, cash flow is negative
2) introduction/launch- sales may take time to build,promotion, clash flow negative
3) growth- sales increase, promotion continues, cash flow positive
4) maturity - sales are higher but growth of sales fall due to competition, cash flow is positive
5) decline- sales are falling due to better products arriving to market, cash flow eventually negative
What can be used to avoid the decline stage
- increase promotional activity
- update product/packaging
- target different market segments
- find new uses for product
Product development process
1) ideas generate
2) analyse ideas
3) selection of ideas develop
4) develop prototypes
5) test product
6) launch product
Reasons for new product development
1) existing product day end of life cycle
2) new opportunities open up In market
3) build on brands strengths
4) growth in sales/revenue
5) compete with other businesses
Risks of new product development
- many ideas will never reach production
- poor sales
- long time to payback initial investment
