1.3.5

Question 1

Development stage of product life cycle

Answer 1

• high costs- no sales to cover them
• market research conducted
• high failure rate (not enough demand)

Question 2

Introduction stage of product life cycle

Answer 2

• promotion of product is key
• sales revenue go up, but has to pay for high costs of develop before it can make a profit
• competition may be limited (if innovative)

Question 3

Growth stage of product life cycle

Answer 3

• new customers and repeat customer
• rising sales encourage outlets to stock the product
• competition increases

Question 4

Maturity stage of product life cycle

Answer 4

• sales reach a peak
• there aren’t many new customers
• profitability increases because costs of development have been paid for

Question 5

Decline stage of product life cycle

Answer 5

• product doesn’t appeal to customers anymore
• if sales keep falling the firm can either withdraw the product or use an extension strategy

Question 6

Describe what are question marks in the boston matrix

Answer 6

• new products which are not profitable yet and could to succeed or fail
• require a lot of marketing

= small market share, high market growth

Question 7

Describe what cash cows are in the boston matrix

Answer 7

• in their maturity phase
• low costs bc they have already been promoted and are produced in high volumes

= high market share, low growth

Question 8

Describe what stars are in the boston matrix

Answer 8

• in their growth phase, have the most potential
• future cash cows
• might need to spend money to increase capacity to keep up w demand

= high market share, high market growth

Question 9

Describe what dogs are on the boston matrix

Answer 9

• very little sales , lost cause

= low market share, low market growth

Question 10

Mass marketing strategies?

Answer 10

• sponsorship/ product endorsement(celebrities)
• promotional activities (percentage discounts)
• customer loyalty cards/ saver schemes (repeat custom)

Question 11

Niche marketing strategies?

Answer 11

• focuses more on building a reputation and customer loyalty
• USP is key in niche market

Question 12

Difference between B2B marketing and B2C marketing

Answer 12

• B2B is more concerned with cost savings or potential interest as it has no emotional interest in the product
• B2B is more specialised than B2C