Product - Marketing Mix

A product refers to

any good or service that serves to satisfy the needs and wants of customers. 

two types of products

tangible and intangible

Tangible Products

the smartphone device

Intangible Products

operating system software

Consumer products are

 purchased by private individuals for their personal use.  

Examples of consumer products are: 

 

Examples of consumer products are: 

• Consumer perishables 

• Consumer durables 

• Specialty consumer goods 

• Fast moving consuming goods are purchased by businesses to use in the production process. 

Producer products or industrial goods are 

purchased by businesses to use in the production process. 

 

The product life cycle (PLC) shows the

 different stages that a product is likely to go through from its initial design and launch to its decline. 

 

 A product portfolio refers to the

collection of all the products owned by a business at a point in time. 

Stages of the Product Portfolio

R&D, Launch, Growth, Maturity, Decline

The Boston Consulting Group matrix (Chapter 47), is a

product portfolio planning tool from the BMT that is commonly used by marketing managers

The BCG Matrix (Boston Consulting Group Matrix) is a tool businesses use to 

analyze their product portfolio. 

Star

High Relative Market Share, High Market Growth

Question Mark

Low Relative Market Share, High Market Growth

Cash Cow

High Relative Market Share, Low Market Growth

Dog

Low Relative Market Share, Low Market Growth

R&D:  Companies invest a lot of money because they are

developing a new idea into a product. 

R&D:   There is no sales revenue as the product is

not available for sale. 

R&D: There are

high research and development costs. 

R&D:   Prototypes and test markets are  

used

Launch:

  Products are

introduced to the market. 

Launch:   Sales

increase slowly. 

Launch:   Extensive promotion

takes place. 

Launch:  Products are not

profitable at this stage (due to low sales and high expenses). 

Launch:  The objective is to move to the

growth stage as quickly as possible and become the market leader. 

Launch:   Buyers in this stage are known as

 

Innovators. 

Products in launch stage are question marks due

 

to low market share in a market with high growth 

Growth:   Rapid increase in

sales due to greater consumer awareness. 

Growth:   More channels of

distribution (place). 

Growth:   Strong 

profits

Growth:   More  

competitors

Growth:   Product differentiation strategies  

are used

Growth:   Buyers in this stage are known as

Early adopters. 

Products in growth stage are stars due to

high market share in a rapidly growing market

Maturity: Sales increasing (but

at a slower rate) and peak. 

Maturity:  Economies of

scale are possible. 

Maturity:   Heavy promotion takes

place to differentiate brands. 

Maturity:   Product lines

extended (with more product versions and variations). 

Maturity:   Unsuccessful competitors

drop from the market. 

Maturity:   Buyers in this stage are known as the

Majority. 

Products in the maturity are cash cows due to

experiencing high market share in a market that is experiencing slower rates of growth 

Decline:   Sales and profits

fall. 

Decline:   Demand is low due to

changing fashion and tastes, new replacement models or obsolete technology. 

Decline:   Promotional spending

falls or stops. 

Decline:   Buyers in this stage are known as  

 

Laggards

Products in decline stage are dogs due to

low market share in a market experiencing slow rates of growth