3.3.4: Making marketing decisions: using marketing mix (PRODUCT)

Descrição

product, product life cycle, extension strategies, boston matrix, links between both models, product portfolio analysis
Ashleigh-Jade Jones
FlashCards por Ashleigh-Jade Jones, atualizado more than 1 year ago
Ashleigh-Jade Jones
Criado por Ashleigh-Jade Jones mais de 7 anos atrás
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Resumo de Recurso

Questão Responda
Product: (Key Features) -functional -reliable -durable -nice appearance -good value -safe and abides legislation -suitable packaging -convenient -fashionable
Business to Business/Business to Consumer?: B2B: -likely to sell in bulk -discounts -functional -longer credit terms B2C: -sell individually -pricing is higher (greater margins) -displays/show rooms -pay up front or on a payment plan
The Product Life Cycle Model: (& examples) D - ? I - apple watch G - iphone, sushi restaurants M - marmite S - italian restaurants D - CD's
The Product Life Cycle: (Expanded) *Development: market research, idea of product developed, prototypes made (high expense in research and development, no profit due to product not available) *Introduction: slow sales begin (high expenditure in promotion and advertising, no profit due to still high expenditure) *Growth: increase speed of sales if promotion was successful (start breaking even on costs as smaller expenditure & greater profits) *Maturity & Saturation: sales slow, should expand product range (lower costs as no expenditure in promotion, larger profits) *Decline: sales fall, product is less popular, business must decide on fate of product (withdraw/extension) (minimal costs, lower profit)
Extension Strategies: *Strategies taken to extend the life cycle of a product Examples: -re-brand (packaging -> marmite) -price/size adjustment (chocolate bars/iphone) -updates (iOS) -new products (robinsons shots) -open up to larger markets (market development -> Johnson's, Yorkie)
The Boston Matrix: a method of analysing the products in a firms product portfolio based on market share and growth
Dog: -low market share in a market with low growth -no longer generating profit
Question Mark/Problem Child: -low market share in a fast growing market (high) -future uncertain so may succeed or fail
Cash Cow: -high market share in a slow growing market (low) -good/established product generates profit
Star: -high market share in a fast growing market (high) -generates high profit
Link Between Product Life Cycle and Boston Matrix: -introduction -> question mark/problem child -growth -> star -maturity -> cash cow -decline -> dog
Decisions Based Off of the Boston Matrix Results: Dog: -possible extension strategy -withdraw product from market Question Mark/Problem Child: -investment in promotion to boost sales Cash Cow: -reap profits with limited spending and use elsewhere e.g. Question Mark or Star Star: -invest in advertising/promotion to maintain or increase sales/market share
Product Portfolio Analysis: the process of analysing a business' existing product range e.g. The Boston Matrix

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