product Flashcards
product life cycle
- development
- introduction
- growth
- maturity
- decline
development
Research and development and testing take place. Prototypes are built and modified before a product is ready for launch.
introduction
Product is launched on the market. Advertising costs will be high in order for the product to get noticed.
growth
Sales rise and a profit may be made if research and development and advertising costs have been recouped.
maturity
Sales are at their highest and profits are maximised.
decline
Sales begin to fall, sometimes as a result of new competitors, or the new products, changes in fashion or lifestyle.
life cycle extension strategies
- change the product
- change the price
- change the place
- change the advertising
- change the packaging
- change the name
product portfolio
A product portfolio is an organisation’s range of products or services.
benefits of a product portfolio
- spreads the risk
- maximises sales
- raise the profile of the business
- easier to launch new products
- consumer loyalty
drawbacks of a product portfolio
- higher research and development costs
- higher marketing and advertising costs
- bad publicity by one product affects sale of all products
- resources may be spread thin
stars
stars are products with high market growth and a high market share
cash cows
Cash Cows are products with low market growth and a high market share
question marks
Question marks are products with high market growth and a low market share
dogs
dogs are products with low market growth and a low market share
