Professional Documents
Culture Documents
What is a Product
BENEFIT: How the Product or Service Satisfies A Need
PRODUCT:
A Benefit That Satisfies a Customer COMPETITIVE Better than A Competitors Product ADVANTAGE: Benefits
Managing Products
category
The product The product line The technology platform The product itself
2.
that evaluates a companys products in terms of their market growth rate and relative share. Products are classified as: Stars, Cash Cows,
Dogs are low-growth, low-share businesses and products that may generate enough cash to maintain themselves but do not promise to be large sources of cash. Not worth much investment.
Difficulty in defining SBUs and measuring market share and growth Time consuming Expensive Focus on current businesses, not future planning
GE Matrix
A more advanced model developed by General
Market attractiveness is a composite measure of the potential for sales and profits in a particular market segment
Business strength is the strength of our offering relative to other companies products
GE Matrix is an expansion of the BCG matrix. The dimensions are more comprehensive and detailed.
GE Matrix
Market Attractiveness Growth Diversity Competitive Structure Change Technology Change Social Environment
GE Matrix
Business Strength Size of Market & Share Company Growth Rate Profit Margins Technology Platform Image People
development, introduction, growth, maturity, and decline in sales PLC describes the sales history of a successful product The cycle can be applied to individual products or to product platforms or categories As products go through the life cycle, marketing emphases will change.
Sales
Redirect focus & promotion Invest in expanding production Build inventory Expand distributor network Train expanded sales force Institute marketing controls Invest heavily in advertising Target on best prospects: innovators and enthusiasts Use most loyal distributors Use free samples Use public demonstrations and trade shows Use publicity and endorsements Use specialist media & catalogs
Development
Introduction
Growth
Maturity
Decline
Time
Product Development
R&D Test Marketing Introduction Growth Maturity Decline
product, it fails, and we lose some or all of our investment Opportunity risk we decide to kill a product and thereby lose all of the revenue we would have gained if it had been a success
PRODUCT DEVELOPMENT
SPECIFYING FEATURES SCREENING AND PRELIMINARY INVESTIGATION IDEA GENERATION
Begin as an idea that must be screened to determine if it is worth further development (concept test) Features are specified and then a prototype is created A small run of the product is manufactured and beta, or field, tested letting customers use in real-world conditions
2. 3.
4.
Have close ties with a well defined market to anticipate customer needs.
Company is highly integrated and market-oriented Company has a competitive advantage in technology and production capability Company has a strong marketing proficiency New product launch adequately financed
EQUALS
SUCCESSFUL PRODUCT