Quiz 1 Midterms Flashcards
this is the stage wherein the product is new, so there
will not have been time for advertising and promotional work to come
to fruition. It is a crucial stage in the life of a product.
Introduction
this is the stage wherein sales accelerate markedly as
advertising and promotional work comes to fruition, and the product
benefits from imitative buying as consumers see it being bought and
used by others.
Growth
this is the stage wherein the growth in the size of the total
market for the product begins to slow. Also, rival firms will have had
time to complete the research and development of their own,
competing products.
Maturity
this is where market growth comes to an end, and the
product is overwhelmed by newer rivals. Once Decline sets in,
there is no choice but to abandon the product and take the
resources devoted to it and use them for more rewarding
purposes.
Decline
New products must be substantially better
value-for-money than those they are replacing, in order for
consumers to accept the risks of using them.
Relative Advantage
An innovation is unlikely to be successful if it is a
very radical departure from the existing ways in which business is
done in the market sector in question, or if it is incompatible with
prevailing ethical or moral standards.
Compatibility
Some innovations fail because they are perceived as
being extremely difficult to use, requiring purchasers to invest a
great deal of time and effort in becoming familiar with them.
Complexity
It is often easier to persuade consumers to take a
series of short steps, rather than one very large and risky one.
Divisibility
Customers are unlikely to be persuaded to buy
a product if the benefits this product will bring cannot be
communicated to them persuasively.
Communicability
is the collection of all the products or services
offered by a company.
product portfolio
The classic method for analysing a Product Portfolio is known as
the
boston box
are defined as those wherein the firm’s
product only holds a low share of the market, but the overall
market is growing quickly.
wildcat products
defined as the situation wherein the overall
market is growing quickly and the firm’s product has a good share
of the market.
star products
This is the one where the product in
question still has a good share of the market, but where the total
market is no longer growing strongly.
Cash cows products
are those where the total market is not growing
and the firm has only a low share of the existing small market.
dog products
