Section – C

Consumer Adoption Process

Adoption process is a series of stages by which a consumer might adopt a
NEW product or service. Whether it be Services or Products, in todays competitive world,
a consumer is faced with a lot of choices. How does he make a decision to ADOPT a new
product is the Adoption process. Philip Kotler considers five steps in consumer adoption
process. They are:

1. Awareness Stage: In this stage Individual consumer becomes aware of the

innovation. He has little or no information about the new product. He is aware of
either by discussion with friends, relatives, salesmen, or dealers. He gets idea about a
new product from various means of advertising like newspapers, magazines, Internet,
television, outdoor media, etc. At this stage, he doesn’t give much attention to the new
product. As an example, movie teasers are designed to inform the audience and
customers that a movie will be released soon, but it doesn’t provide them in-depth
information about the movie.

2. Interest and information Stage: In this stage, the consumer becomes

interested in innovation and tries to collect more information. He collects information
from advertising media, salesmen, dealers, current users, or directly from company.
He tries to know about qualities, features, functions, risk, producers, brand, colour,
shape, price, incentives, availability, services, and other relevant aspects. Simply, he
collects as much information as he can. Ex. Apple utilizes its product launch to
provide information and insight into its latest product. With well-designed and
organized speech, scripted presentation, Apple delivers information to broad range of
customers. With the information now available in multiple mediums, Apple gains the
interest of their potential customers and builds strong momentum of interested buyers.

3. Evaluation Stage: Prior to purchasing, now, accumulated information is used to

evaluate the innovation. The consumer considers all the significant aspects to judge
the worth of innovation. He compares different aspects of innovation like qualities,
features, performance, price, after-sales services, etc., with the existing products to
arrive at the decision whether the innovation should be tried out. We are now finding
that consumers go online and utilize social media channels to ask other individuals
 about your product or service. In addition, they find online reviews and
recommendations. Ex. PCMag is a world-renowned website for comparing gadgets
and computers. Product manufactures can contact PCMag and request to get their
products included in the magazine.

4. Trial Stage: Consumer is ready to try or test the new product. He practically
examines it. He tries out the innovation in a small scale to get self-experience. He can
buy the product, or can use free samples. This is an important stage as it determines
whether to buy it. Ex. Costco is known for their free samples. Costco, is an
American multinational corporation provide variety of products such as electronics
and computers, clothing etc

5. Adoption Stage: If trial produces satisfactory results, finally the consumer decides
to adopt/buy the innovation. He decides on quantity, type, model, dealer, payment,
and other issues. He purchases the product and consumes individually or jointly with
other members. This is the critical stage that businesses need to get their consumers
to. When the customer is here, you need to make the payment process simple,
intuitive, and pain free. In addition, you need to ensure that the consumer can easily
obtain the product.

6. William Stanton considers sixth step that is Post Adoption Behavior

Stage: This is the last stage of consumer adoption. If a consumer satisfies with a new
product and related services, he continues buying it frequently, and vice-versa. He
becomes a regular user of innovation and also talks favourable to others. This is a
crucial step for a marketer.

Factors Affecting Adoption Process

 Readiness to try New Products

 Relative advantage: whether the new product seems to be superior then the
existing product?
 Complexity
 effect of personal influence: Personal influence is the effect one person has on
another person’s attitude or purchase probability.
 Innovation characteristics: features and characteristics of the new product
 Need fulfillment: whether the product can fulfill the need or not.
 Triability
 Extent of marketing efforts involved

Product Life Cycle (refer to ppt)

Market Evolution

Stages of market evolution/marketing concepts/philosophies of marketing

 Production concept
 Product concept
 Selling concept
 Marketing concept
 Societal marketing concept

Market Dominance Strategy/market positions

1. Market leader: The market leader is dominant in its industry. It is the firm
with the largest market share. The market leader is frequently able to lead other
firms in the introduction of new products, in price changes, in the level or intensity
of promotions, and so on. Market leaders usually want to increase their market
share even further, or at least to protect their current market share.

The main options/strategies available to market leaders are:

 Expand the total market by finding new users or new uses of the product
 Expand the total market by encouraging more usage on each use occasion
 Protecting market share by developing new product ideas, improving
customer service
 improving distribution effectiveness
 Expanding market share by targeting one or more competitors

2. Market challenger: is an organization with second largest market share. A

market challenger is an organisation a strong, but not dominant position. It
typically targets the industry leader. Some of the options open to a market
challenger are:
 Discounting or price cutting
  Product line extensions
 New product introduction
 Increase product quality
 Improve service (see Section 17)
 Find new distribution channels
 Improve and intensify promotional activity

3. Market follower: A market follower is a company that follows what the leader in
its sector does. A market follower does not like taking risks, It then only adopts
the leader’s successful strategies. The market followers are wider in case of online
marketing because online marketing has lower entry barriers and higher returns.
Thus, in online commerce itself, you will see that companies like
Snapdeal, flipkart, amazon, jabongg have all started one after the other. Off
course, the market leaders were Ebay and Amazon. But they are facing stiff
competition nowadays.
The four follower strategies are as given below:
1. Counterfeiter: Copies the leader’s product and packages and sells it on the
black market. E.g.pirated music/ movie CDs
2. Cloner: Copies the leader’s products as it is as well as name, packaging with
slight variations.
3. Imitator: Copies some of the things from leader’s product but maintains
difference in packaging, and other factors.
4. Adaptor: Launches improved products over that of the innovator’s.

New Product Attributes

Characteristics of a raw material or finished good which make it distinct from other
products. Attributes include size, color, functionality, components and features that affect
the product's appeal or acceptance in the market.
In other words: A product attribute is a characteristic that defines a particular product and
will affect a consumer's purchase decision. Product attributes can be tangible (or physical
in nature) or intangible (or not physical in nature). New products has the following
attributes:
 Demonstrable: The better the visual demonstration of the product the greater
the chance for success. Remember, the product is the star of the commercial and
has to shine bright. It has to have some kind of feature or aspect that makes people
say, “WOW” and take note.
  Unique: Does your product do something different than anything else out in the
marketplace?
 Product Pricing : Well priced products leave the consumer feeling they just
got a great deal.
 Practical: people need the product to solve a practical purpose. They want
value, ease of use and ingenuity. If people don’t believe it will work as advertised
then they will not buy.

Section – D
Brand Management
Brand management includes managing the tangible and intangible characteristics of
brand. brand management is a series of techniques used to increase the perceived value of
a product or service. Effective brand management builds loyal customers through positive
brand association and has a positive effect on your bottom line.

Brand definition: The American Marketing Association defines a brand as “A name,

term, design, symbol, or any other feature that identifies one seller’s good or service as
distinct from those of other sellers. A brand may identify one item, a family of items, or
all items of that seller. If used for the firm as a whole, the preferred term is trade name.”

In simple words: A brand is an identifying symbol, mark, logo, name, word and/or
sentence that companies use to distinguish their product from others.

Branding: The process involved in creating a unique name and image for a product in
the consumers' mind, mainly through advertising campaigns with a consistent theme.
Branding aims to establish a significant and differentiated presence in the market that
attracts and retains loyal customers.

In other words: Branding is a process of creating a unique image or name or logo or

symbol or combination of any of these for a specific product in consumer’s mind which
differentiates it from competitor’s products. It is the perceived emotional image of a
company and is effective way for communication between two parties-buyers and sellers.

Brand equity
The commercial value that derives from consumer perception of the brand name of a
particular product or service, rather than from the product or service itself. If people
think highly of a brand, it has positive brand equity and vice versa.
 Brand equity is the additional value a product receives from having a well known brand,
or high level of brand awareness. It is the difference in price that a consumer pays when
they purchase a recognized brand’s product over a lesser known, generic version of the
same product.

Example of positive brand equity: Apple, ranked by one organization as “the world’s
most popular brand” in 2015, is a classic example of a brand with positive equity.

Example of negative rank equity: Toyota suffered in 2009 when it had to recall more than
8 million vehicles because of unintended acceleration

Positive brand equity has value:

 Price Premium: Companies can charge more for a product with a great deal of brand
equity.

 Increases Market Share: A positive brand equity often results in more loyal
customers who prefer one specific brand over others and in-turn increases its share in
the market.

 That equity can be transferred to line extensions – products related to the brand that
include the brand name – so a business can make more money from the brand.
 It can help boost a company’s stock price.
 Increase cash flow by increasing market share, reducing promotional expenses and
allowing premium pricing.
 Asset: Brand equity is an asset that can be sold or leased.
 Results in high sales
 Low costs
 Generate revenue

Process of developing brand equity

Brand equity develops and grows as a result of a customer’s experiences with the brand.
The process typically involves that customer or consumer’s natural relationship with the
brand that unfolds following a predictable model:

 Awareness – The brand is introduced to its target audience – often with advertising –
in a way that gets it noticed.
 Recognition – Customers become familiar with the brand and recognize it in a store or
elsewhere.
  Trial – Now that they recognize the brand and know what it is or stands for, they try
it.
 Preference – When the consumer has a good experience with the brand, it becomes
the preferred choice.
 Loyalty – After a series of good brand experiences, users not only recommend it to
others, it becomes the only one they will buy and use in that category. They think so
highly of it that any product associated with the brand benefits from its positive glow.

Components of Brand Equity

 Brand Awareness: Brand awareness means that the customers are aware of the brand
and can associate it with the specific product/category.

 Brand Associations: Advertisements, online & offline presence, and pre-sale, sale, and
post-sale interactions give rise to brand associations. Good brand associations are
crucial to any business as it not only leads to repetitive sales, but it also helps the
business through word of mouth marketing.

 Perceived Quality: The product quality being a qualitative measure is a relative subject
and depends totally on customer’s perception.

 Brand Experience: Brand experience is the aggregate of experiences of the customer

with the product offered and the brand overall. It includes pre-sale, sale, and post-sale
experiences with the brand along with the experiences with the product offered.
Customers with good brand experiences will certainly consider the brand superior over
others and will prefer it over other brands.

 Brand Preference: Brand preference is one of the major indicators of strong brand
equity in the market. A preferred brand can charge more for the same product.
However, giving rise to brand preference isn’t as easy as it seems. The company needs
to make sure that the customers have good associations and experiences with their
brand.

 Brand Loyalty: A brand loyal person repeatedly chooses one brand over others
offering the same product. Loyal customers not only result in repetitive sales, but they
also are the best source for word of mouth marketing.
 Branding Challenges
 Financial challenges: major challenge businesses face regarding branding is the
funding it needs to be successful. A sensible budget should be allocated to branding,
along with marketing, which is a significant consideration to make.

 Creating a digital branding strategy: Brand building online is a more dynamic and
complex when compared to conventional brand-building channels.

 Competition
 Educating consumers
 Maintaining brand consistency
 Price increases
 Customer loyalty: Customer loyalty is a challenge because customers have so many
options these days, and this forces brands to constantly spend time on innovation in
order to stay ahead of their competitors at a faster and faster rate.

 Brand Value: When a customer responds favorably towards a brand, he adds value. If
he adds negative differential, the brand loses value.

 Brand Trust: in case of startup, customers do not trust the brand easily.
 Brand awareness

Brand name decision

A brand name is a name (usually a proper noun) applied by a manufacturer or organization

to a particular product or service.
Brand names are usually capitalized. In recent years bicapitalized names (such
as eBay and iPod) have become popular.

Following points should be considered while selecting brand name:

 Distinctive: The brand name should be distinctive, so that consumers don’t confuse it
with other brands. Rolex and Bugatti are good examples.

 Easy to recall – brand name should be quite simple, recognizable and easy to
remember. Making a brand name too complicated or vague or too long should be
 avoided. It should be easy to pronounce, recognise, and remember. iPod and Nike are
certainly better than “Troglodyte Homonculus” – a clothing brand.

 Translatable – for large companies that operate in multiple markets, how the brand
name can be translated and communicated needs to be considered. The brand name
should translate easily into foreign languages. The Ford Pinto line had some struggles
in Brazil, seeing as it translated into “tiny male genitals”

 It should suggest something about a product’s benefits and qualities. Think of the
wadding polish “Nevr Dull”. The brand name indicates the benefit of using this product:
the treated metal will never be dull.

 Avoid confusion:

 Extendable : It should also be extendable. Think of Amazon.com, which began as an

online bookseller but chose a name that would allow expansion into other categories. If
Amazon.com had chosen a different name, such as books.com, it could not have
extended its business that easily.

 Registration and legal protection : It should be capable of registration and legal

protection. In other words, it must not infringe)‫ (نقض‬on existing brand names.

Brand Strategy Decisions

The marketer has to make different decisions to popular a brand. These decisions are
called brand strategy decisions. They are:

1) Brand Positioning
2) Brand name selection
3) Brand sponsorship
4) Brand development

1. Brand positioning: Brand positioning is an act of designing the company’s offering

and image to occupy a distinct place in the mind of the target market. – Philip Kotler.
brand positioning describes how a brand is different from its competitors and where, or
how, it sits in customers’ minds. the marketer can position their product in the mind of the
consumer by 3 different ways.

 Attribute: It means the features of the product. The marketers can emphasis on the
attributes of the product and this way he can position the product in the minds of the
consumer of the product. For eg. Pears face wash – to clean the face.
 A car brand may focus on attributes such as large engines, fancy colours and sportive
design.

 Benefit: It refers to the benefits which the consumer gets from the product. For eg.
Pears face wash – for soft skin. The car brand could go beyond the technical product
attributes and promote the resulting benefits for the customer: quick transportation,
lifestyle and so further.

 Beliefs and values: The marketer can position their product in the mind of the
consumer by giving them strong beliefs. For eg. Pears face wash- make you
feel attractive.

2. Brand name selection: Already explained above

4. Brand sponsorship: A manufacturer has four brand sponsorship options.

 Manufacturer’s brand: the product could be launched in the stores as

manufacturer’s brand. For eg. Bajaj, Videocon, Haier etc.

 Private brand: the manufacturer may sell the product to the seller who gives it a
private name. Like: Big bazaar.

 License brand: there may be licensed brand. The seller of gents wear may use
many licensed names like: Reid & taylor, John player etc.

 Co-branding: sometimes two companies join together for co-branding. Like Intel-
HP, Idea-HDFC etc.

5. Brand development: there are different ways to develop a brand. It involves five
different strategies.

 Line extension: it means introducing additional items in the given product

category. For eg. The product Colgate’s brand development is done by it’s line
extension by introducing Colgate calcigaurd, Colgate total, Colgate gel, Colgate
active.

 Brand extension: it means extending a successful brand name to more products. It

is a very strong tool in brand development and the product enter easily without any
extra cost. For eg. Amul milk, Amul butter, Amul cheese, Amul bread spread etc.
 Product flanking: it means introduction of different combination of product at
different price, different package size. Like: tea in 50 gm pack, 250 gm pack, 1 kg
pack.

 Multibrands: means marketing many different brands in a given product

category. P&G (Procter & Gamble) and Unilever are the best examples for this. In
the USA, P&G sells six brands of laundry detergent, five brands of shampoo and
four brands of dishwashing detergent.

 New brand: a new brand name is introduce by the company in case when it is
entering into a new product category and for that product existing brand name is
not suitable or when the power of existing brand names is waning.

Brand Repositioning

Repositioning is defined as altering the position of a brand or product in the minds of

the customer. Repositioning refers to the major change in positioning for the
brand/product. To successfully reposition a product, the firm has to change the target
market’s understanding of the product. This is sometimes a challenge, particularly for
well-established or strongly branded products.

For instance, Dettol toilet soap was positioned as a beauty soap initially. This was not
in line with its core values. Dettol, the parent brand (anti-septic liquid) was known for
its ability to heal cuts and gashes. The extension’s ‘beauty’ positioning was not in tune
with the parent’s “germ-kill” positioning. The soap, therefore, had to be repositioned
as a “germ-kill” soap (“bath for grimy occasions”) and it fared extremely well after
repositioning.

Reasons for brand repositioning

 Decrease in sales

 Change in target market

 Competition

 Change in consumer needs

 Change in macro environment: Significant changes in the macro environment
may require products to be repositioned. Economic conditions, technological
advances, and even legislative change may require the firm to change its product’s
positioning.

 Bad Reputation: If a brand has a bad reputation and this is having a serious
impact on its operating results

 Organization is significantly altering its strategic direction.

 Organization is entering new businesses and the current positioning is no

longer appropriate.

 Internationalization: In some cases, rebranding is necessary so that a brand can

also be used internationally. This may be because the brand name is too specific to
a particular country.

Strategies/Alternative options available for brand repositioning

 Image repositioning :This takes place when both the product and the target market
remain unchanged. The aim is to change the image of the product in its current
target market. In the early 1990s Adidas were seen as reliable but dull. The
company created an image of ‘street credibility’in an attempt to reposition the
brand to appeal to the consumer in the sports shoe market.

 Market repositioning: Here the product remains unchanged but it is repositioned

to appeal to a new market segment. Lucia, a brand of carbonated glucose drink,
was originally targeted as a product for individuals suffering from illness,
particularly children. In recent years it has been repositioned as an isotonic drink
aimed at young adults undertaking sporting activities.

 Product repositioning: In this situation the product is materially changed but is

still aimed to appeal to the existing target market. In the early 1990s Castle
maine XXXX lager was altered, with its alcohol content being increased from
3.7 per cent to 3.9 per cent for pub sale sand 4 per cent for cans sold in
supermarkets. The packaging was also changed as the size of can was changed
from 440 ml to 500 ml. These changes were instituted to address the changes in
consumer tastes in the product’s target market.
  Total repositioning: This option involves both change of target market and
accompanying product modifications. Soda has managed under Volkswagen’s
ownership to reposition itself totally. The product quality and design has changed
significantly and the brand now has credibility with new, more affluent
consumers. This has also allowed the brand to expand its sales outside its Eastern
European heartland.

packaging and labeling

Packaging is the science, art, and technology of enclosing or protecting products for
distribution, storage, sale, and use. Packaging also refers to the process of design,
evaluation, and production of packages. the main use for packaging is protection of
the goods inside, but packaging also provides a recognizable logo or image.
Consumers instantly know what the goods are inside. Packing is silent marketing

Labeling is any written, electronic, or graphic communications on the packaging or on

a separate but associated label. Marketers use labeling to their products to bring
identification. A label is a slip of paper pasted on the package and/or on the product
giving the following details:

1. The nature of the product,

2. The manufacturer,

3. The date of manufacture,

4. The date of expiry (in some cases),

5. The ingredients used (in some cases),

6. The price (the MRP — Maximum Retail Price) and

7. The taxes as applicable.

A label is essentially a medium through which the manufacturer gives

necessary information to the consumer.
 The objectives of packaging and package labeling
 Physical Protection—The objects enclosed in the package may require
protection from, among other things, shock, vibration, compression,
temperature, etc.

 Barrier Protection—A barrier from oxygen, water vapor, dust, etc.

 Information transmission—Packages and labels communicate how to use,

transport, recycle, or dispose of the package or product.

 Marketing—The packaging and labels can be used by marketers to encourage

potential buyers to purchase the product.

 Convenience—Packages can have features that add convenience in distribution,

handling, display, sale, opening, re-closing, use, and reuse.

 Facilitate transportation

 To facilitate storage of goods in warehouses.

Packaging types
 Primary packaging: Is the material that first envelops the product and holds it.
This usually is the smallest unit of distribution or use and is the package that is
in direct contact with the contents. Ex Beverage can, Bottle, Envelope, Plastic
bag, Plastic bottle, Wrapper etc

 Secondary packaging: Is outside the primary packaging—perhaps used to

group primary packages together. Ex. Box, Carton, Shrink wrap etc.

Tertiary packaging: Is used for bulk handling and shipping. Ex. Barrel, Crate,
Container
 Disadvantages of packing
 Cost: While packaging can do a lot to get customer attention, and may even add
value to a product, it also adds to the cost of production and the eventual retail
price. According to Know This, packaging can represent as much as 40 percent of
the selling price of products in industries such as the cosmetic industry. New
packaging can be expensive to develop, adding to the cost of products.
 Landfill Impact: Packaging is responsible for significant portions of the waste
stream. Some waste can be recycled, but many materials are not appropriate for
recycling. Post-consumer recycled content is often usable only in specific contexts.
Much of the waste produced by packaging ends up in a landfill.
 Air and water pollution: Production also requires energy, usually sourced
from burning fossil fuels, and may produce air and water pollution.
 Some forms of plastic packaging are health hazards.
 Sometime Packaging is deceptive(‫)فریبنده‬

Managing Brand and Product line portfolios

Brand Portfolio: The Brand Portfolio refers to an umbrella under which all the
brands or brand lines of a particular firm functions to serve the needs of different
market segments. In simple words, brand portfolio encompasses all the brands
offered by a single firm for sale to cater the needs of different groups of people.
There are two types of brand portfolio models:

 The House of Brands model refers to a portfolio where brands have

different names across categories. Most of the major consumer goods
companies use this model. The advantage of this model is that since the
brands are independent, the failure of any single one of them has little
impact on the others.
 The Branded Property model uses one brand across all categories. Virgin
is a good example of this, with its airline, media and train companies all
being similarly identified. The advantage of this model is that positive
images of one benefit all categories; however a negative publicity or event
will also have a direct impact on all brands within the family.
 BCG Matrix

BCG matrix also called Growth-share matrix is a business tool, which uses relative
market share and industry growth rate factors to evaluate the potential of business
brand portfolio and suggest further investment strategies.

BCG matrix is a framework created by Boston Consulting Group to evaluate the

strategic position of the business brand portfolio and its potential. It classifies
business portfolio into four categories based on industry attractiveness (growth rate
of that industry) and competitive position (relative market share). The general
purpose of the analysis is to help understand, which brands the firm should invest
in and which ones should be divested.

Relative market share. One of the dimensions used to evaluate business portfolio is
relative market share. Higher corporate’s market share results in higher cash
returns. This is because a firm that produces more, benefits from higher economies
of scale which results in higher profits.

Market growth rate. High market growth rate means higher earnings and sometimes
profits but it also consumes lots of cash, which is used as investment to stimulate
further growth. Therefore, business units that operate in rapid growth industries are
cash users and are worth investing in only when they are expected to grow or
maintain market share in the future.

The four categories of BCG matrix are:

 Dogs. Dogs hold low market share compared to competitors and low growth
rate. In general, they are not worth investing in because they generate low or
negative cash returns. These products are very likely making a loss or a very
low profit at best.

 Cash Cows: Cash cows are the leaders in the marketplace and generate more
cash than they consume. These are business units or products that have a high
market share but low growth prospects. According to NetMBA, cash cows
provide the cash required to turn question marks into market leaders, cover the
administrative costs of the company, fund research and development, service
the corporate debt, and pay dividends to shareholders. Companies are advised to
invest in cash cows to maintain the current level of productivity.

 Stars: The business units or products that have the best market share and
generate the most cash are considered stars. Monopolies and first-to-market
products are frequently termed stars. However, because of their high growth
rate, stars consume large amounts of cash. They are the primary units in which
the company should invest its money, because stars are expected to become
cash cows and generate positive cash flows. Yet, not all stars become cash
flows. This is especially true in rapidly changing industries, where new
innovative products can soon be outcompeted by new technological
advancements, so a star instead of becoming a cash cow, becomes a dog.

 Question Marks: These parts of a business have high growth prospects but a
low market share. They consume a lot of cash but bring little in return.
However, since these business units are growing rapidly, they have the potential
to turn into stars. Companies are advised to invest in question marks if the
product has the potential for growth, or to sell if it does not.
 GE-model

The GE-McKinsey nine-box matrix is a strategy tool that offers a systematic

approach for the multi-business corporation to prioritize its investments among its
business units.

The GE Matrix is plotted in a two-dimensional, 3 x 3 grid. The Y-axis measures

market attractiveness based on a high, medium, or low score. The X-axis measures
business unit strength on a high, medium, or low score.
Industry Attractiveness: Industry attractiveness indicates how hard or easy it
will be for a company to compete in the market and earn profits. The more
profitable the industry is the more attractive it becomes. When evaluating the
industry attractiveness, analysts should look how an industry will change in the
long run rather than in the near future, because the investments needed for the
product usually require long lasting commitment.

Factors affecting industry attractiveness:

  Market size

 Market growth

 Competition

 Pestel factors

 Political

 Economical

 Social

 Technological

 Environmental

 Legal

 Micro environmental factors

Competitive Strength/ business unit strength: refers to the competitive position

of the business unit. Along the X axis, the matrix measures how strong, in terms of
competition, a particular business unit is against its rivals. Factors to determine
how strong a unit is compared to others in its industry include:

 Market share

 Growth in market share

 Brand equity

 Profit margins compared to competition

 Distribution channel process

 Customer loyalty etc

GE-model leads to three strategic decisions based on the outcome of this model:

 Grow/Invest: Units that land in this section of the grid generally have high
market share and promise high returns in the future so should be invested in.

Hold/Selectivity: Units that land in this section of the grid can be ambiguous and
should only be invested in if there is money left over after investing in the
profitable units.
Harvest/Divest: Poor performing units in an unattractive industry end up in this
section of the grid. This should only be invested in if they can make more money
than is put into them. Otherwise they should be liquidated.

Ansoff’s Matrix
Ansoff's Matrix is a marketing planning model that helps a business determine its
product and market growth strategy. Ansoff’s product/market growth matrix
suggests that a business’ attempts to grow depend on whether it markets new or
existing products in new or existing markets.