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bm 4.5 product - Coggle Diagram
bm 4.5 product
packaging
ways in a product is presented to consumer
product differentiation
profound impact on customer perceptions of a product or brand
differentiates from competitor products
protects product from damage during transportation
provides info
makes distribution easier
can be used to encourage impulse buying
promotes brand or business
Boston consulting group (BCG) matrix
stars
high market share // high market growth
successful products that generate large revenue
require large investment to develop and promote
market growth slows --> cash cows
cash cows
high market share // low market growth
mature and established
require minimal investment
sales revenues are used to maintain stars and grow question marks
dogs
low market share // low market growth
generate little revenue as markets declining
should be dropped
question marks
low market share // high market growth
high potential but require substantial investment to develop into stars
low revenue but high investment expenses
need managers to decide which products to grow or drop
uses
identifies the need to rebalance portfolio
dynamic model
products can change categories
limitations
high market share does not always lead to profits
does not identify causes of product positions
should be used with other planning tools
branding
name or trademark that is identifiable with a business or product
intangible asset
1 brand awareness
extent that potential customers or public recognises a particular brand
higher sales revenue
competitive advantages
repeat purchases
2 brand development
marketing process of improving and enlarging brand name to boost sales revenue and market share
some can be so famous that they are mistaken for the name of the product itself
3 brand loyalty
occurs when customers buy the same brand time and time again
devoted to brand since they have preference over other brand names
opp --> brand switching
benefits
maintains/ improves market share
ability to set premium pricing
act as a barrier to entry in highly competitive markets
prolongs the product and brand life cycle
4 brand value
premiom that customers are willing to pay for brand name above the value of the product itself
benefits
higher market share
higher barrier to entry
premium prices
consumer products
purchased by private individuals for own personal use
fast moving consumer goods
consumer durables
consumer perishables
specialty consumer products
product life cycle (PLC)
1 research and development (R & D)
invest a lot of money developing a new idea into a product
no sales revenue
high research and development costs
basic research & applied research
2 launch
products are introduced to market
sales increase slowly
extensive promotion
not profitable
low sales and high expenses
buyers --> innovators
promotion & capital investment
3 growth
rapid increase in sales
greater consumer awareness
strong profits
more competitors
buyers --> early adopters
promotion, product improvement and capacity expansion
4 maturity
sales increasing and peaks
max profit
economies of scale are possible
buyers --> majority
extension strategies
5 decline
sales and profit fall
buyers --> laggards
divestment
profit disappears as prices are reduced and sales decrease
product termination costs
producer products
purchased by businesses to use in production process
any good or service that serves to satisfy the needs and wants of customers
tangible
intangible