Product

Question 1

What is a product?

Answer 1

A product is a good or service (functional item) which also has a personality

Question 2

What is the product portfolio?

Answer 2

Mix of products the business produces and sells

Question 3

PROS of a Product portfolio?

Answer 3

Spreads fixed cost
Greater EOS
Reduces risk
Opportunity for growth

Question 4

What is Breadth and Depth?

Answer 4

Breadth (Number of product lines)

Depth(Number of product varieties )

Question 5

What is Branding?

Answer 5

Establish a product with a separate identity in consumers’ minds

Question 6

Branding importance and PROS ?

Answer 6

Brand loyalty

Differentiates Products

Help recognition

BRand image

Flexibility when making pricing decisions(Charge high prices)

Question 7

Cons of Branding ?

Answer 7

Costs of advertising

Loss of brand value in one product affects all

Competition

R&D costs to keep improving

Question 8

What is USP(Unique selling Point)?

Answer 8

Product or service has a feature which separates it from competition

Question 9

Method of Product differentiation ?

Answer 9

Methods of Promo

Packaging

Form(Square carton for milk,Circle carton for milk)

Provision of add-ons(Insurance)

Quality and reliability

Question 10

Factors affecting Packaging?

Answer 10

Design

Convenience (Straps to carry)

Protection(Doesn’t damage the product)

Information (nutrition facts)

Environmental factors (Paper,Plastic)
Cost

Question 11

What is the product life cycle ?

Answer 11

Different stages in the life cycle of a product and sales achieved at each stage

Question 12

Main components of a Product life cycle?

Answer 12

R&D
Introduction
Growth
Maturity(Peak)
Saturation(Start of a decline)
Decline

Question 13

What are extension strategies and examples ?

Answer 13

Used to extend the life cycle of a product

Repositioning the product in the marketplace(Chocolate near Tills)
Relaunching the product
Repackaging
New features

Question 14

Reasons for and against a product life cycle?

Answer 14

Identify when to launch new products

Extension strategies are needed

Does not predict sales

Management tool Not a decision

Question 15

What is the Boston Matrix ?

Answer 15

To analyse Product portfolio with the use of a Matrix

Cash cows
Dogs
Problem child
Stars

Question 16

What are the components of Boston Matrix ?

Answer 16

Star(High MG,HighMS)

Problem child/Question mark(High MG,Low MS)

Cash cow (High MS,Low MG)

Dog(LOW MG,Low MS)

Question 17

Pros and cons of The Boston Matrix

Answer 17

Simple to use and explain
Helps design a Strat
Easy to construct
Clear guidance

Based on assumptions
(MS gained through marketing)
Terminology of the 4 quad
(Dog undesirable,Still profitable)
High market share may not mean high profit