1.3- Marketing Mix And Strategy Flashcards
What is distribution?
The process of getting the right product or service to the consumer in the right place.
What are the ‘4 stages’ of distribution?
- Manufacturer
- Wholesaler
- Retailer
- Consumer
What are the ‘3 stages’ of distribution?
- Manufacturer
- Retailer
- Consumer
What are the ‘2 stages’ of distribution?
- Manufacturer
- Consumer
What are 3 advantages of online distribution?
- Main benefit is so niche products can reach a wider audience.
- Easy for people.
- Allows for international customers.
What is the idea of changing from product to service?
The concept that you do not have to own something to be able to use it (e.g music).
What are the 4 factors that affect the methods used to get products to customers?
- Nature of products (e.g medicines sold in pharmacy).
- The market.
- Nature of the business.
- Size of the business.
What is marketing?
The management process of identifying, anticipating and satisfying customer demands for profit.
What is marketing strategy?
The methods used by a business to achieve their marketing objectives.
What are the 5 stages of the product life cycle?
- Development
- Introduction
- Growth
- Maturity
- Decline
What happens during the introduction stage of a product?
- Involves high costs in research and development.
- Sales will be low.
- Trying to advertise the product will be priority.
What happens during the growth phase of a product?
- Enjoying rapid growth in sales and profits.
- Demand is high.
What happens during the maturity phase of a product?
- Facing intense competition.
- Everyone has already brought it.
- Sales are high but profits are in decline.
- Prices may lower.
What happens during the decline phase of a product?
- Limited in production.
- Product may be withdrawn from sales.
- May heavily discount to get any last sales.
- There is a trend towards more disposable items rather than fixable ones.
What are 2 extension strategies used on products?
- Change the product (e.g Coca Cola Zero).
- Change the promotion (rebranding)
What is a product portfolio?
The collection of all the products and services offered by a company.
What is the Boston Matrix?
It is a marketing planning tool hitch helps managers to plan for a balanced product portfolio.
What are the 4 parts of the Boston Matrix?
- Star Products.
- Question Mark.
- Cash Cow.
- Dog.
What are the features of Star Products?
- High market share.
- In a high growth share.
- If managed correctly, stars should become cash cows.
What are the features of question mark products?
- Low market share.
- In high growth market.
- Potential to become stars if managed correctly.
- Need lot’s of investments in marketing and promotion.
What are the features of Cash Cow products?
- High market share.
- In low growth share.
- Good sellers and need little to no investments.
- “Milked for cash”.
- Need monitoring in case they become dogs.
What are the features of a dog product?
- Low market share.
- In low growth market.
- Require no investment as they are in the decline stage.
- May have become obsolete or replaced.
- May consider discontinuing the product.
What are the uses of the Boston Matrix?
- Good starting point when reviewing an existing product line to decide future strategy’s.
- Question marks reveal themselves as either dogs or stars and Cash Cows become so drained of finance that they turn into dogs.
What are the Limitations of the Boston Matrix?
- Products may not be low or high market share they could be medium.
- Many people argue this Matrix is too simple.
