1.3.5 - Marketing Strategies

Question 1

Marketing Definition

Answer 1

The management process of identifying,
anticipating and satisfying consumer demands
for profit

Question 2

Product life cycle definition

Answer 2

The different stages a product goes through from its conception to its eventual decline in sales

Question 3

5 stages of the Product Life Cycle

Answer 3

1. Development
2. Introduction
3. Growth
4. Maturity
5. Decline

Question 4

Explanation and Implication of the Development stage

Answer 4

EX
- Focus on development and designing the product
- High costs and time

IMP
- Cash flow negative as not focusing on sales
- Creating awareness and generating interest

Question 5

Explanation and Implication of the Introduction stage

Answer 5

EX
- When a product is introduced to market
- Slow sales as new

IMP
- Cash flow negative from promotion, advertising etc
- Marketing focused to promoting

Question 6

Explanation and Implication of the Growth stage

Answer 6

EX
- Product enters this stage when growth begins to have rapid sales
- Focuses to build market share and increasing production to meet demand

IMP
- Cash flow is usually positive
- Strategy to differentiate the product from competitors and build loyalty

Question 7

Explanation and Implication of the Maturity stage

Answer 7

EX
- Characterised by slowing sales as it reaches its peak

IMP
- Cash flow positivity
- Maintain market share and increase profitability

Question 8

Explanation and Implication of Decline stage

Answer 8

EX
- Starts when sales decrease and begins to become obsolete
- Focuses on reducing costs

IMP
- Cash flow negative and sales revenue decreases
- May involve reducing price and finding new uses for the product

Question 9

What are product related extension strategies?

Answer 9

Involves changing or modifying the product to make it more appealing and reach more consumers

Question 10

Examples of product related extension strategies

Answer 10

• Product improvements
• Line extensions

Question 11

What are promotion related extension strategies?

Answer 11

Changing marketing and promotion to extend the products life

Question 12

Examples of promotion related extension strategies?

Answer 12

• Changes to advertising
• Price promotions
• Sales promotions

Question 13

When is the Boston matrix used?

Answer 13

Used to analyse their product portfolio and
make strategic decisions about each product

Question 14

What are the 4 categories of the Boston Matrix?

Answer 14

1. Star
2. Cash cow
3. Question Mark
4. Dog

Question 15

Explanation and Implication of Cash cow

Answer 15

EX
- Products with high market share in a mature market

IMP
- Significant Cash flow
- Low growth potential
- Minimal resources invested as continuous sales
- Valuable assets and can be used to grow and develop other products

Question 16

Explanation and Implication of Question marks

Answer 16

EX
- Low market share in high growth

IMP
- Negative Cash flow and often investment to turn into stars
- Focus on increasing market share and recognition

Question 17

Explanation and Implication of Star

Answer 17

EX
- High market share in high growth market

IMP
- Positive cash flow and growth
- Focus on market share, recognition and maintaining profitability
- Valuable assets and maximise the businesses profitability

Question 18

Explanation and Implication of Dog

Answer 18

EX
- Low market share in low growth market

IMP
- Little revenue and have little growth for the business
- Businesses often move from these products to maximise products
- Minimal marketing efforts

Question 19

Marketing strategies for mass markets

Answer 19

Focus on brand awareness and appealing to a broad audience
- Advertising campaigns
- Simple messages and reach a large audience

Question 20

Marketing strategies for niche markets

Answer 20

Use specialist advertising to meet the subsections
- More details and offer specific information

Question 21

Marketing strategies for B2B markets (Business to Business)

Answer 21

Focused on selling products to other businesses
- Marketing emphasises building relations and how the product can benefit the business
- Informative rather than clever

Question 22

Marketing strategies for B2C markets

Answer 22

Focused on building brand loyalty and positive consumer experience
- Emotional marketing

Question 23

Ways to increase customer loyalty

Answer 23

1. Customer service
2. Saver cards
3. Loyalty schemes
4. Communication
5. Personalisation