Products Decisions

1
Products Decisions

• Product and Service Classification System
• The Product Life Cycle
• Introduction to product matrices
• Boston Matrix (Growth/Share)
• Ansoffs Matrix (Product Market)

2
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,

3

• 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

4
The Product Life Cycle
5
The Boston Matrix (Growth/Share Matrix)
Market Share
High
3. Question Mark (Problem Child)
1. Stars
Market Growth
2. Cash Cows
4. Dogs
Low
High
Low
6
The Boston Matrix - Chocolate Bars
Market Share
High
Maverick Miniature Heroes
FUSE
Market Growth
KIT KAT MARS BAR
TOPIC BOUNTY
Low
High
Low
7
Ansoffs Matrix (Product/Market Matrix)
Existing Markets
New Markets
Existing Products
Market Penetration
Market Development
Diversification
Product Development
New Products
8
Ansoffs Matrix (Product/Market Matrix)
Existing Markets
New Markets
Existing Products
E.g. Realignments of the marketing mix
E.g. Geographical expansion
Diversification - related or unrelated
Same outlets and sales strategy - new product
New Products
9
Products Decisions

• Product and Service Classification System?
• The Product Life Cycle stages?
• Growth/Share?
• Product Market?