Studied by 0 people
Looks like no one added any tags here yet for you.
product
refers to any good or service that serves to satisfy the needs + wants of customers + can be tangible + intangible
consumer products
these are purchased by private individuals for their personal use
producer products
these are industrial goods that are purchased by businesses to use in their production process
product portfolio analysis
it looks at market growth + market share to assess the market potential for new + existing products
strategic business units (SBUs)
ex: KFC, Pizza Hut, Taco Bell
the boston matrix - dogs
low/low - generate little revenue as markets declining + products should be dropped
the boston matrix - question marks
high/low - products that have high potential but require large investment to develop into stars + they generate low revenue
the boston matrix - stars
high/high - successful products that generate large revenue + become cash cows as market growth slows but require large investment to develop + promote
the boston matrix - cash cows
low/high - products that are mature + established, require minimal investment, + are used to maintain stars + grow question marks from sales revenues
the boston matrix - uses
identifies the need to rebalance portfolio
it is a dynamic model as products can change categories
the boston matrix - limitations
high market share does not always lead to profits
does not identify causes of product positions
should be used with other planning tools
product life cycle (PLC)
shows the different stages that a product is likely to go through from its initial design + launch to its decline
product portfolios
refers to the collection of all the products owned by a business at a point in time
features of the research and development stage
lot of money invested on a new idea, no sales revenue, no product for sale yet, high research + development costs, prototypes + test markets used
features of the launch stage
product introduced to the market, sales increase slowly, extensive promotion, products are not profitable yet, goal is to move to the growth stage asap
buyers in the launch stage are known as…
innovators
features of the growth stage
rapid increase in sales, sold in more places, strong profits, more opps, product differentiation strategies are used
buyers in the growth stage are known as…
early adopters
features of the maturity stage
sales increase + peak, economies of scale are possible, heavy promotion, more variations of product, unsuccessful opps drop from the market
buyers in the maturity stage are known as…
majority
features of the decline stage
sales + profits fall, demand is low, promotion stops
buyers in the decline stage are known as…
laggards
extension strategies to extend the length of the maturity stage
price reductions, redesigning, repackaging, new markets, new promotional activities
branding
refers to a name or trademark that is identifiable with a business or product
brand awareness
the extent to which potential customers (the public) recognize a particular brand
brand development
refers to the marketing process of improving + enlarging the brand name
brand loyalty
occurs when customers buy the same brand time + time again + have preference for one brand over others
brand value
refers to the premium that customers are willing to pay for a brand name over + above the value of the product itself
marketing ____ exists when a business becomes complacent about its product strategy.
myopia
____ brand names become synonymous with the name of the product itself due to their popularity (ex: BandAid, Jacuzzi).
genericize
_____ are the consumers who first own a certain product, usually due to the prestige associated w being first / loyalty.
innovators
____-brand strategy involves a business developing more than one brand as part of its overall product strategy.
multi
a _____ is a trial product, used during the pre-launch stage of the product life cycle, to evaluate product potential.
prototype
_____ marketing is when a business trials a new product with a small number of customers.
test
a ____ is a form of legal protection for intellectual property (IP) that gives the biz owner exclusive use of the name.
trademark
____ is a term used by the Boston Consulting Group to refer to any product that generates significant income.
cash cow
____ are products in a BCG matrix that compete in high market growth industries, but have low market share.
question marks
____ are products in the Boston Matrix that have high or rising market share in a high growth market.
stars
____ are products in the BCG matrix that have low market share and operate in low growth or stagnant markets.
dogs
Note 
Flashcard (95)