Product Life Cycle, Extension Strategies, Product Portfolio And Product Positioning, Boston, USP

Question 1

differentiation

Answer 1

making the product distinctive

finding a USP helps the product stand out

Question 2

choosing the correct type of differentiation

Answer 2

branding - logo + writing the name makes it recognisable

if the product is poor anyway they branding is lost

producing the right type of product being based on effective reasearch - market/customer orientated

Question 3

large businesses differentiating

Answer 3

any form of differentiation will help to make the product distinctive when compared to the rest of the market

relaunch or reposition brands to gain their market share

however the product is positioned, it aims to increase revenues - either through higher sales of a specific product in a specific position or indirectly by being in the market and therefore, enhancinf the recognition of the brand name without increasing revenues

Question 4

USP

Answer 4

can increase market growth and market share by finding something that makes the business stand out against competitors

Question 5

Value Analysis

Answer 5

considering the nature of the product enables the business to assess its priorities

helps to focus the manufacturer’s mind on the main characteristics of the product:

• FUNCTION
• COST
• AESTHETIC

Question 6

extension strategies for the product lifecycle

Answer 6

you need to change one of the 4 ps

• modifying the product
• re-branding
• developing a wider product range
• develop new uses for these existing product
• develop a more frequent use for it
• change its styles

Question 7

product positioning

Answer 7

selling the ‘right’ product at the ‘right’ segment of the market is a decision that a business will have to take

helpful to undertake research to ascertain what other products are in the market nd where each od them are positioned

once information has been collected it can be plotted

can be done for whole market or for its own roduct portfolio

Question 8

how can product positioning be achieved?

Answer 8

1) the PRICE in relation to that of COMPETITORS PRICING in the market
2) having good QUALITY when compared to others in the market
3) satisfying a SMALL SEGMENT OF THE MARKET
4) being something COMPLETELY DIFFERENT

wherever its positioned, it aims to INCREASE REVENUES either DIRECTLY (as a result of higher sales of a specific product in a specific position within the market) or INDIRECTLY (by being in the market and therefore enhancing recognition of the brand name without increasing revenue)

Question 9

product portfolio and product positioning chart advantages/uses/importance

Answer 9

a business producing a range of products

by using a PRODUCT POSITIONING CHART those charts can be used to help a business decide if its wants to produce a product that will fill a gap in the market

businesses also need to be careful as there may be a good reason for there being a gap in the market- no demand for that type of product

the product positioning chart can be used to see where the majority of the products are positioned - a business can then decide if its going to launch into the market despite it being highly competitive or not

the chart can also help a business to see any obvious gaps in its own product portfolio