Understanding Product Life Cycle and Marketing Strategies

Product

Goods and services provided by a firm.

Product Portfolio

Range of products a business controls.

Brand

Identity distinguishing a business's products.

Unique Selling Point (USP)

Feature making a product stand out.

Differentiation

Making a product distinct from competitors.

Product Life Cycle

Stages a product goes through from launch.

Extension Strategy

Tactics to prolong a product's market life.

Cash Flow

Movement of money in and out of business.

Boston Matrix

Tool for managing product portfolio effectively.

Brand Loyalty

Customer commitment to repurchase a brand.

Corporate Branding

Creating a perception associated with a company.

Geographical Branding

Branding representing a region's identity.

Brand Recognition

Consumer's ability to identify a brand.

Physical Goods

Tangible products like cars or televisions.

Intangible Services

Non-physical offerings like consultancy or teaching.

Product Analysis

Evaluating product positioning in the market.

Consumer Behavior

How consumers decide to purchase products.

Brand Promise

Expectation set by a brand to consumers.

Pricing Strategies

Methods to set product prices competitively.

Advertising

Promotional activity to influence consumer perceptions.

Market Positioning

How a product is perceived relative to competitors.

Stakeholders

Individuals or groups affected by business decisions.

Product Features

Attributes that influence consumer purchasing decisions.

Customer Needs

Ability to meet customer expectations effectively.

Brand Image

Perception of a brand in the consumer's mind.

Unique Selling Proposition (USP)

Distinct feature that differentiates a product.

Product Life Cycle

Stages a product goes through from launch to decline.

Development Stage

Negative cash flow due to R&D before sales.

Introduction Stage

High production and promotion costs after launch.

Growth Stage

Increasing sales revenue with economies of scale.

Maturity Stage

Sales stabilize; product acts as a cash cow.

Decline Stage

Sales begin to decrease over time.

Extension Strategy

Methods to prolong a product's market presence.

Changing the Product

Modifying features or flavors to attract customers.

Increasing Promotion

Enhancing marketing efforts to boost sales.

Cash Cow

High market share in a low growth market.

Rising Star

High market share in a high growth market.

Problem Child

Low market share in a high growth market.

Dog

Low market share in a low growth market.

Sales Revenue

Income generated from selling products or services.

Market Share

Percentage of total sales in a market.

Market Growth

Increase in market demand over time.

Economies of Scale

Cost advantages due to increased production.

Cash Inflows

Money received from sales or investments.

Cash Outflows

Money spent on expenses or investments.

Product Portfolio Analysis

Evaluating a company's range of products.

Cash Cow

Product generating steady profits for funding others.

Rising Star

High market share in a rapidly growing market.

Boston Matrix

Framework for analyzing product portfolio performance.

Market Growth

Rate at which a market expands over time.

Market Share

Percentage of total sales in a market held by a product.

Promotional Spending

Investment in marketing to increase product visibility.

Negative Cash Flow

Outflow exceeds inflow, common in rising stars.

Product Life Cycle

Stages a product goes through from introduction to decline.

Extension Strategy

Methods to prolong a product's life cycle.

Unique Selling Point (USP)

Feature that differentiates a product from competitors.

Differentiation

Process of distinguishing a product from others.

Fierce Competition

Intense rivalry among firms in a market.

Capital Investment

Funds invested to enhance production capacity.

Nurturing

Supporting a product to help it grow and succeed.

Discontinue

To stop production or sale of a product.

Product Portfolio

Collection of all products offered by a business.

Cross Subsidisation

Using profits from one product to support another.

Market Scope

Potential for future profits in a specific market.

Sales Increase Opportunity

Potential for higher profits through increased sales.

Personal Style Products

Items purchased to showcase individual style or wealth.

Product Portfolio

The mix of products a business offers.

Fixed Costs Spreading

Distributing fixed costs across multiple products.

Market Targeting

Focusing on specific customer segments for sales.

Risk Reduction

Minimizing potential losses through product variety.

Sales Smoothing

Evening out sales fluctuations over time.

Growth Opportunities

Chances for business expansion through product diversity.

Product Breadth

Number of different product lines offered.

Product Depth

Varieties within each product line offered.

Proctor and Gamble

Company with over 20 brands in its portfolio.

Brand Definition

A name that differentiates a product from others.

Consumer Reliance

Trust in a brand for quality and value.

Distinctive Identity

Unique characteristics that consumers associate with a brand.

Brand Recognition

Ease of identifying a product by its brand.

Brand Value

Perceived worth of a brand in the market.

Consumer Loyalty

Repeat purchases driven by brand attachment.

Price Inelasticity

Demand remains stable despite price changes.

Advertising Costs

Expenses incurred to maintain brand visibility.

Brand Competition

Rivalry from similar product brands.

Dyson Vacuum Cleaners

Market leader known for bagless technology.

Technological Advantage

Superior technology that enhances product appeal.

Dyson

Market leader with bagless system and colors.

USP

Unique Selling Proposition; product's distinguishing feature.

Product Differentiation

Making products distinct from competitors.

Methods of Promotion

Creating a product personality through marketing.

Eco-packaging

Environmentally friendly packaging for products.

Form

Physical appearance differing from competitors' products.

Add-ons

Additional features enhancing product value, e.g., warranties.

Quality and Reliability

Emphasizing product durability and performance.

Customer Loyalty

Consumer commitment to a brand over time.

Pricing Strategies

Approaches to setting product prices based on market.

Introduction Stage

Product is new; low awareness and high costs.

Growth Stage

Increasing awareness; profits begin but advertising costs high.

Maturity Stage

Peak sales; competition increases; profits high.

Saturation Stage

Market full; few new customers; profits decline.