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n Does the product and the competencies and resources that go into
creating it suggest that life extension is a realistic possibility?
(Supplementary: Are your people familiar with the concept of the
product life cycle? Do your team actively seek to increase the life
cycle of all cash cows? Note: You may need to explain Porter’s
concept of Cash Cows, Stars, Question Marks (Wild Cards) and
Dogs as a useful way to assess the position on the life cycle of
products to the client. Avoid explicit or implicit criticisms of the
client business, but provide any information that will facilitate
answering of later questions or will deepen and broaden client
thinking.)

n Are you actively considering other markets, segments, sectors,
niches or customers who may have needs that the firm has the
competencies and resources to satisfy? (Supplementary: Could you
please give me an example of what is in the pipeline?)

n Are there sufficient new products in the pipeline to build revenues
and discourage customers from defecting to other suppliers?
(Supplementary: How do you communicate new products or services
to the marketplace? How would/do your customers describe your
business?)

n Have you developed plans to lengthen the product life cycle of cash
cows?

n Are you taking steps to get rid of “dogs” in terms of customers as
well as products?

n How do you evaluate “question marks” quickly to avoid over-
investing in new products which may turn out to be “dogs” when
they hit the market?

n Are steps being taken to reduce the investment needs of “stars” as
quickly as possible so that they will become “cash cows”?

n Is your advertising effective? (Supplementary: Is there a clear
linkage between advertising spend, sales volumes and profits?)

n How is the advertising evaluated?

n By whom is it evaluated?

n When does the evaluation take place?

n Do customers recognize the benefits of your products or services as
if they were brands like Coca-Cola or Sony? (Supplementary: What
do your customers tell you about their response to your brands?
Why do they say that they buy? What do they like about doing
business with you? What are you doing to give them more of what
they like?)

n Does your finance operation work with marketing to assess the
value of brand equity? (Supplementary: How is brand equity value
reflected in your financial reports?)

158 Key management questions