1.3.5 - Marketing Strategies Flashcards
Marketing Definition
The management process of identifying,
anticipating and satisfying consumer demands
for profit
Product life cycle definition
The different stages a product goes through from its conception to its eventual decline in sales
5 stages of the Product Life Cycle
- Development
- Introduction
- Growth
- Maturity
- Decline
Explanation and Implication of the Development stage
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
Explanation and Implication of the Introduction stage
EX
- When a product is introduced to market
- Slow sales as new
IMP
- Cash flow negative from promotion, advertising etc
- Marketing focused to promoting
Explanation and Implication of the Growth stage
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
Explanation and Implication of the Maturity stage
EX
- Characterised by slowing sales as it reaches its peak
IMP
- Cash flow positivity
- Maintain market share and increase profitability
Explanation and Implication of Decline stage
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
What are product related extension strategies?
Involves changing or modifying the product to make it more appealing and reach more consumers
Examples of product related extension strategies
- Product improvements
- Line extensions
What are promotion related extension strategies?
Changing marketing and promotion to extend the products life
Examples of promotion related extension strategies?
- Changes to advertising
- Price promotions
- Sales promotions
When is the Boston matrix used?
Used to analyse their product portfolio and
make strategic decisions about each product
What are the 4 categories of the Boston Matrix?
- Star
- Cash cow
- Question Mark
- Dog
Explanation and Implication of Cash cow
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
Explanation and Implication of Question marks
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
Explanation and Implication of Star
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
Explanation and Implication of Dog
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
Marketing strategies for mass markets
Focus on brand awareness and appealing to a broad audience
- Advertising campaigns
- Simple messages and reach a large audience
Marketing strategies for niche markets
Use specialist advertising to meet the subsections
- More details and offer specific information
Marketing strategies for B2B markets (Business to Business)
Focused on selling products to other businesses
- Marketing emphasises building relations and how the product can benefit the business
- Informative rather than clever
Marketing strategies for B2C markets
Focused on building brand loyalty and positive consumer experience
- Emotional marketing
Ways to increase customer loyalty
- Customer service
- Saver cards
- Loyalty schemes
- Communication
- Personalisation
