1.3.5 marketing strategy Flashcards
1
Q
product lifecycle
A
theoretical model which describes the stage a product goes through over it’s lifetime
2
Q
order of product lifecycle
A
- r&d
- intro
- growth
- maturity
- decline
3
Q
r&d:
A
- -ve cashflow (money spent on research + developing the product)
-market research useful to see what marget segments appeal - 3D printer,CAD/CAM, all used to speed up process
4
Q
introduction
A
- low sales at start (no product awareness)
- -ve cashflow (all money used to pay debt for r&d)
- penetration/psychological used (set lower price)
5
Q
growth
A
- cash flow/sales increase
- unit production decreases, making more for less
- recession may cause less growth
6
Q
maturity
A
- cash flow/sales plateau
- competition increases, product is at it’s best
- market maps used to find gaps (product extension)
7
Q
decline
A
- sales/cashflow decrease
- trends, consumer income, competition cause decline
- product extension prevents decline
8
Q
how to extend the product lifecycle
A
- decrease price
- change promotion
- look for alternative distribution channel
- develop new market segment
- find new uses
- reposition product
9
Q
negatives of product lifecycle
A
- shape + duration varies
- difficult to recognise exactly where the product is
- length cannot be predicted
10
Q
product portfolio
A
assesses the position of each product or brand in portfolio to assess the right marketing strategy
11
Q
boston matrix
A
- can be applied to portfolio of products produced
- firms should aim for a balanced portfolio
12
Q
portfolio
A
collection of businesses or products that make up a business
13
Q
question marks
A
- low market share, high potential growth
- low cashflow
- can become stars or dogs
- uncertain future, depends on investment
- eg air up
14
Q
stars
A
- high market share, high potential growth
- very popular
- still needs advertising to prevent growth
- large cashflow
- eg crocs
15
Q
cash cows
A
- low potential growth, high market share
- increasing cashflow (not spending on promotion)
- eg ketchup
16
Q
dogs
A
- products that have failed/in decline phase
- negative market share of slow growth market
- no potential
- eg fidget spinners
17
Q
B2B chain
A
business to business
- tailoring to customer
- personal service
- reliability
18
Q
B2C
A
business to consumer
- strong brand image
- brand awareness
- mass distributio
19
Q
positives of mass marketing strategy
A
- high distribution /sales
- greater control of advertising
- degree of influence over pricing strategy
20
Q
positives of niche marketing strategy
A
- able to meet customer needs
- charge higher prices
- less direct competiton
21
Q
developing customer loyalty
A
- build emotional attachment
- clear+ consistent brand image
- emotional bond - 4p’s
- quick + easy purchases available
