SMM 4

• A product is a good, service, or idea with both tangible and intangible

  attributes that collectively create value for a buyer or user.
• Product line is a group of products that are closely related because they function in a similar manner, are sold to the same customer group, are marketed through the same types of outlets, or fill within given price range.
• A local product or local brand is one that has achieved success in a single national market. Sometimes a global company creates local products and brands in an effort to cater to the needs and preferences of particular country markets.
• Product development decisions are based on identifying the needs, wants, and desires of consumers
• Question marks: Low market share and high market growth. Don't know what to do with opportunities; decide whether to increase investment.
• Stars: High market share and high market growth. Doing well, great opportunities.
• Dogs: Low market share and low market growth. Weak in market, difficult to make profit.
• Cash cows: High market share and low market growth. Doing well in no growth market with limited opportunities.
• BCG matrix developed by Boston Consulting group is an analytical tool used to assess company's product lines.
• Develop or withdraw: High market attractiveness and weak competitive advantage.
• Invest/Grow: High market attractiveness and strong competitive advantage.
• Harvest/Divest: Low market attractiveness and weak competitive advantage.
• Maintain/Protect: Low market attractiveness and strong competitive advantage.
• Five individual product decisions: Product attributes, Branding, Packaging, Labeling, Product Support Services
• Core product: Primary benefit
• Tangible product: Features
• Augmented product: Enhances purchase experience
• Communicated product: Branding
• Types of products: Industrial and consumer goods.
• Product life cycle: Introduction, growth, maturity and decline.
• Economies of scale: When a business grows, it can use its resources more efficiently. Produce more to lower overall cost.