Topic 7 - Product Flashcards
What is a product strategy?
- Defines what an organisation does and why
- Involves creating a product offering that is a bundle of physical, service, and symbolic attributes designed to satisfy customers’ needs and wants
What are the 4 parts that make up the Anatomy of a product?
- Core product e.g a hotel
- Tangible product e.g hotel room
- augmented product e.g room service
- Potential product
What is the product lifecycle made up of?
Pre launch - Introduction - growth - maturity - decline
What is meany by product depth?
The number of difference variants of each item within the production line
What is meant by product line?
- A group of closely related products that may be production orientated
What is the boston matrix made up of?
Star
Question mark
cash cow
dog
What is a star?
High share, high growth, market leader who requires cash to retain position
What is a question mark?
High growth, low share. This is a new product still establishing its position in the market
Whats a cash cow?
- High share low growth.
- Economies of scale is present
Whats a dog?
- Low share, low growth
- May drain time and resources
What are the risks involved with new products?
- Expensive
- No guarantee of success
- shorter lifecycle due to technological change
What does Rodgers model of adoption and diffusion look at?
- The people who buy the product and how they differ
Who is an innovator?
- Someone who helps to get the product off the ground and start to gain acceptanc e.g wait outside for the product
- 2.5%
Who are the early adopters?
- Opinion leaders
- Critical for making product be accepted
Who are the early and later majority?
Early - 34% they are the mass market that builds as more people enter it
Later - 34% often wait for the price to drop and are less interested about the product category
