Random Flashcards
(11 cards)
What are the 4 categories of the boston matrix?
stars
cash cows
question marks
dogs
What do stars stand for?
high market share, high market growth
- successful products in growing markets
- need investment to keep growing
- e.g. a popular new smartphone model
What do cash cows stand for?
high market share, low market growth
- generate steady profits with little investment
- e.g. a well known soft drink brand
What do question marks stand for?
low market share, high market growth
- have potential but need heavy investment
- e.g. a new startup brand in a growing market
What do dogs stand for?
low market share, low market growth
- little or no profit
- business may discontinue or rebrand them
- e.g. an outdated technology product
What are the stages of the product life cycle?
introduction
- the product is launched into the market
- high marketing costs, low sales, little to no profit e.g. a new video game released
growth
- sales increase more
- profit rises and marketing continues
- e.g. a popular fashion trend taking off
maturity
- sales peak and start to slow down
- product is well known and profits are high
decline
- sales and profits fall as demand and popularity decreases
- product may be discounted or replaced
- e.g. DVD players
How can you extend the product life cycle?
- reducing prices
- improving the product by adding new features, or new versions
- different advertising promotion
- change packaging
- change place its sold (different country)
What is a wholesaler?
they buy large quantities of goods from manufacturers and then sell them in smaller quantities to retailers
advantage - manufacturers can focus on production
disadvantage - they pay less per item than a retailer
what are retailers?
they sell products directly to consumers, often in smaller quantities
what are direct sales?
the manufacturer sells directly to the consumer
