1.3.5 Marketing Strategies 🏪 Flashcards
What is the product life cycle ?
A graph that shows how the amount of sales and demand progress throughout its life cycle
What are the 5 (6 if your persistent 😜) five stages of the product cycle ?
Research and development - products are not available to buy high costs - business is spending is designing and developing the product and manufacturing
Eg - Driveless cars
Introduction- products are launched or released - begin to see an increase in sales - high costs for promotion and continued to R and D
Growth- significant increase in sales costs stabilise , begin to see compitition
Maturity - high sales stabile costs see a growth in compition
May need or increase promotion to maintain market share
Decline - sales begin to decrease due to lack of demand or product/service becoming obsolete- could carry out product extension strategy or discontinue product
Product extension
What is a extension strategy?
Something used by a business to extend the life cycle of an existing products/services
How can we extend the life of a product ?
We can innovate products
Reduce price
Change packaging
Change usage of product - multiple usages like sauces or toothpaste
Enter new market - geographical or change target audience
Increase available option of product - new colour
What is the Boston matrix ?
MG- market growth
High MG ✨Stars✨ | Question marks
|
Low MG Cash cows 🐄 Dogs 🐕
Relative market share
Method used to analyse product portfolio of the business
What do Star products at have in what kind of market growth?
High market share in market with high market growth
What are star products ?
The greatest potential for businesses
What do star products allow businesses to have ?
Fist mover advantage- first business within the market to gain demand and establish customer base first
What kind of face within the product life cycle would cash cows have ?
Maturity !
What kind of market share does cash cows have in what kind of growing market ?
High market share in low growth market
What kind of part do cash cows have ?
Consistent part of the portfolio
What do cash cows not require ?
Investment
What do cash cows make ?
Large profits
What is another name for question marks ?
Problem children
What kind of market share do question marks have in what kind of market?
Low market share in a high growth market
What do question marks present an issue towards businesses?
Have potential to be successful but are not
What kind of investment does question mark products need ?
Significant amount- product might have just been launched
What kind of market share do dogs have and who is the growth of its market ?
Low market share in low growth market
What kind of part would a dog product have ?
Important part
Why may dogs be an important parts of the Portfolio?
Are cash neutral - bring in cash with little cost
What happens to dog products if market declines ?
May need to be removed - discontinued
What is important within the Boston matrix?
Balancing product lines - don’t want too many stars in the first few stages of your product cycle because it will drain resources
What should businesses take looking at the Boston matrix? 
Appropriate decisions - stars are good because they will build the brand image
Dogs can be can be divested 
What are the two kinds of marketing strategies B2B and B2C markets can do?
B2C- Focuses on selling product/services directly to customers
Outbound marketing strategies- Directing marketing material directly to potential customers Whether they expect it or not
Inbound marketing strategies- B2B Attracting customers to company website and they’re trying to find solution or suppliers
Give examples of outbound marketing strategies
Mail email sponsorship
Give examples of inbound marketing strategies
Social media marketing - develop a following on social media
search engine optimisation increase the website traffic by get higher ranked response
targeted email marketing
What are the drawbacks of using outbound marketing strategies? 3)
High cost due to large amount of resources
continuous persistence to persuade customers can damage brand reputation and image
Ad fatigue- ignore
What are the three negatives of inbound marketing strategies?
effort needed to build useful information for websites to turn visitors into leads
Recruitment for inbound marketing strategy website may be difficult as it’s hard to keep up-to-date with emerging trends
What a hybrid strategies?
Combination of both outbound and inbound methods
inbound strategies take a while to generate results employed in a short-term
once they start to generate meaningful leads some of the outbound methods that are less affective Are dropped
it will help reduce cost and creat sustainable growth
What are the five ways in developing customer loyalty?
Communication
customer service
Customer incentives
personalisation
Preferential treatment
How many communication develop a customer loyalty?
Increase in national advertising reassuring advertising and ensuring that they’re making the right purchase
and keep up-to-date with company events regular
communication helps build relationships between business and consumer
How many customer service develop a customer loyalty?
If customers have a pleasant experience that these will be satisfied better reputation
How many customer incentives develop customer loyalty?
Custom incentives businesses reward customers if they keep returning through loyalty cards
meet customer needs of price and are cheaper than rivals 
How many personalisation develop customer loyalty?
Having to deal with a customer on a personal level for remembering name a few more value and remembered
however may be harder on a multinational business
Help may traetment preferatrial treatment dev loyalty?
People may return for more such as of the VIP areas
What is B2B marketing ?
Business trade with other businesses to promote their operations
What is customer loyalty ?
Preferences - emotional attachment - repeat purchase
What do marketing efforts for star products build ?
brand recognition, increasing market share, and maintaining profitability
Stars are valuable assets and the business should focus on maximising their potential
What do star products generate ?
They generate significant positive cash flow and have the potential for continued growth
What are the marketing efforts focus on maintaining for cash cows?
their market share and profitability
What cash cows be used to fund?
the development of new products
How much revenue do dogs generate?
Little to no - No marketing efforts
