Business Studies GCSE Unit 2: Marketing (AQA)

Product portfolio: the range of products sold by a business. 

Benefits of a product portfolio: 

• Supports the original product (customer spends more in any one visit). 
• Different target markets (new products may appeal to other people). 
• Diversification (increasing sales of new products help declining sales for other products). 

Problems of a large product mix: 

• Many managers employed to make decisions about products - EXPENSIVE. 
• Bad publicity for one product - HARMS WHOLE COMPANY IMAGE. 
• Developing and selling many products - COSTS ARE HIGH. 
• Insufficient market research - PRODUCT FAILS. 

Product Life cycle

Product Life cycle

Launch - sales start slowly as consumers get to know the product. 

Growth - sales accelerate if well advertised and consumers like it. 

Maturity - sales level off as competitors enter the market or tastes change. 

Decline - sales fall as it becomes less popoular. It may eventually be taken off the market. 

Extension strategies: steps taken to extend the lifecycle of the product. 

• Updated designs (may need expensive research). 
• New advertising campaign (increase funds). 
• New markets. 
• New brand image (packaging and expensive new adverts).