G Product Decision 7

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Products Decisions: Products Decisions Product and Service Classification System The Product Life Cycle Introduction to product matrices Boston Matrix (Growth/Share) Ansoff’s Matrix (Product Market)


Product and Service Classification System: Product and Service Classification System Convenience goods - little effort, relatively inexpensive Shopping goods - e.g ‘white goods’, DIY equipment, more expensive, infrequent Speciality goods - extensive search e.g Jewellery, gourmet food Unsought goods - e.g. double glazing,


Slide3: Industrial goods Installations - ‘speciality’ goods of industrial markets - plant and machinery Accessories - maintenance and office equipment Raw materials components Business to business e.g. consultants, accountants


Slide4: Few: Few: trial of trial of early early adopters adopters Growing adopters: Growing adopters: trial of trial of product/service product/service Entry of Entry of competitors competitors Growing selectivity Growing selectivity of purchase of purchase May be many May be many Saturation of Saturation of users users Repeat purchase Repeat purchase reliance reliance Fight to maintain Fight to maintain share share Drop-off Drop-off in usage in usage Exit of some Exit of some competitors competitors Development Development Growth Growth Maturity Maturity Decline Decline The life product cycle model


Slide5: Market Share Market Growth High Low High Low 1. Stars 3. Question Mark (Problem Child) 2. Cash Cows 4. Dogs The Boston Matrix (Growth/Share Matrix)


Slide6: Market Share Market Growth High Low High Low FUSE Maverick Miniature Heroes KIT KAT MARS BAR TOPIC BOUNTY The Boston Matrix - Chocolate Bars


Slide7: Diversification Market Penetration Market Development Product Development Existing Markets New Markets Existing Products New Products Ansoff’s Matrix (Product/Market Matrix)


Slide8: Diversification - related or unrelated E.g. Realignments of the marketing mix E.g. Geographical expansion Same outlets and sales strategy - new product Existing Markets New Markets Existing Products New Products Ansoff’s Matrix (Product/Market Matrix)


Slide9: Products Decisions Product and Service Classification System? The Product Life Cycle stages? Growth/Share? Product Market?