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Products and CUEGIS Concepts - Coggle Diagram
Products and CUEGIS Concepts
Successful products
Provides customers with added value
Product strategy : vital in adding value to a product
Functional value
what product does for customers
Emotional value
psychology and feel-good factor behind the purchase of a product.
Foster brand loyalty
Helps business develop and launch new products under the same brand name
Successful brand names allows companies to enlarge their product portfolios --> strengthens competitive position in a globalised world
Marketing Myopia
Business becomes complacent with its product strategy --> fail to keep up with market changes
Globalization
Global brands - products become popular on an international scale. Same products are sold using same marketing strategies in overseas markets
Key driving forces for global branding strategies : brand exposure and cost savings gained from using a single marketing approach
Cultural and ethical considerations needed to cater to local needs and preferences while retaining core elements of global brand
Consistency in product marketing (same image, appearance, etc) Ex. Coca-cola, Disney, McD
Provides opportunities for multinational business
Product strategy becomes more difficult
Innovation
Intensified competition in many industries
Mass adoption of technology resulted in global competition and business strategies focusing on continuous innovation to remain competitive
Strategies
Product strategy can't succeed w/o other elements of marketing mix and marketing planning
Market segmentation and consumer profiling -- might be necessary to understand and cater for different customer needs
Position mapping - gives managers insightful info regarding customers' perception of a product
Product portfolio analysis - determine product strategy
Producing right product to right ppl at right price - difficult due to cost and other complexities
Multi-brand strategy
- develop two or more brands in the same product category
Coca-cola uses Fanta and Sprite to gain a greater share of the soft drinks market.
product cannibalisation
- potential problem of a multi-brand strategy --> brands from same business directly compete with each other
Increase product mix - allows business to generate more revenue and spread risks.
Brand Management has become an increasingly important management task bcoz innovations continue to shorten product life cycles of many types of products.
SWOT Analysis
Help aid product and brand strategies
Managers can analyse strengths to be developed (ex. brand extension strategies to launch new products)
Highlight weaknesses that needs to be addressed.
Identify potential market opportunities/threats before deciding best strategy to respond
Boston Matrix
High market share and high market growth
Harvest
- strategy involves reaping product benefits.
Purpose - turn starts into cash cows
Might require huge amounts of advertising to turn products into cash cow
High market share and low market growth
Hold
- strategy involves investing enough resources to keep cash cows in their current position in the BCG matrix.
Investment likely minimal as market growth for cash cows will be low
Low market share and high market growth
Build
- strategy involves investing necessary resources to gain market share
Used to turn question marks into stars
Nothing done to increase market share, then cash simply drained from business
Low market share and low market growth
Divest
- strategy involves phasing out or selling off dogs.
Frees up resources to be used elsewhere (ex. investing in certain problem children)
Question marks might face divestment, especially those that are unlikely to turn into stars
BCG Matrix
problem children : main users of cash
cash cows - main generators of cash
Optimal product portfolio strategy : takes advantage of firm's strengths (stars and cash cows) to develop other attractive opportunities (problem children and rising stars)