Product Decisions (AQA A-Level Business): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
USP meaning
USP meaning
Unique selling point - distinctive feature differentiating product
Product life cycle theory
Product life cycle theory
Theory that all products follow similar pattern through existence
Cash flow in development stage
Cash flow in development stage
Expected to be negative - spending on development, no sales yet
Failure rate at introduction stage
Failure rate at introduction stage
60% to 90% of new products fail at this stage
Profit per unit in growth stage
Profit per unit in growth stage
Likely to be at maximum level
Competition in maturity stage
Competition in maturity stage
Intense competition with other brands
Extension strategy: new markets
Extension strategy: new markets
Sell mature products in developing countries where still novel
Star products (Boston matrix)
Star products (Boston matrix)
Dominant market share & good growth prospects
Cash cows role
Cash cows role
Generate surplus cash to fund development of other products
Problem children characteristics
Problem children characteristics
Small share of growing market, high cash demand, uncertain future