1.3.5 marketing strategy Flashcards
define marketing strategy
a carefully evaluated plan for the future marketing activity that balances company objectives, available resources and market opportunities
product life cycle
development
introduction
growth
maturity
decline
development & introduction
high costs in research and development.
promotion to raise awareness.
product may have been test marketed before launching
growth
rapid growth in sales and profits.
could gain economies of scale.
investment in promotion
maturity
phase products face intense competition = competitors.
promotion focuses on the usp.
decline
products may be limited in production.
may cease production
define extension strategies
methods used to prolong the life of a product
portfolio analysis
clarifies the current position of a businesses products.
considers if it has high or low market share.
uses of portfolio analysis
divesting - selling off and ceasing production.
holding - maintain sales through promotional activities.
building - high levels of promotion to raise the products profile.
milking - minimal promotion and let profits roll in
Boston matrix
question mark
star
cash cow
dog
question mark
high market growth, low market share.
product may have just been launched on the market.
star
high market share, high market growth.
growth phase of the product life cycle.
consistent production
cash cow
products reaching maturity stage in product life cycle.
should be produced until sales start to decline
dog
declining sales in declining markets.
decline phase of product life cycle.
products removed from sale
b2b marketing
business to business.
dealing with other businesses rather than consumers.
informative advertising needed.
suppliers build closer relationships with customers
