similar products, for example shaving foam if you are already manufacturing razors Diversification Developing a new product for a completely new market Example tactics: Market research Product research and development Selecting a pricing strategy Once you have determined the product and market you want to be in, the next problem will be setting a price. Porter's model discusses three strategies for competitive advantage based on price. Three generic strategies for competitive advantage - Porter's model Cost leadership: A good quality product at a lower price than the competitors Differential strategy: A product or service which is perceived as unique within a particular market Focus strategy: Delivering focused attention to a particular segment to deliver service which competitors cannot compete Determining which products to invest in If you have a product range it is likely that some will do better than others. The Boston Consultancy Group matrix is a method of determining which to invest in, and which to drop, shown below. High market share Low market share High market growth Stars Question marks Low market growth Cash cows Dogs Stars High growth products with a strong market presence. Probably need high investment to maintain position. Cash cows Low growth products with a high market share. Probably don't need much investment, but require management to maintain profitability. Question marks Products which have potential, but may require investment to yield decent profits. Dogs Rarely worth investing in, dogs should at least break even to be retained. Tactics - the marketing mix The