1.3.5 Marketing Strategy Flashcards
Definition of Product Life Cycle
A way of describing the different stages a product goes through
What are the 5 Stages in the Product Life Cycle
-R+D
-Intro
-Growth
-Maturity
-Decline (+Extension)
What is the cash flow at each stage
-R+D = Negative
-Intro = Negative
-Growth = Turning Positive
-Maturity = Positive
-Decline = Turning Negative
What marketing is used at each stage
-R+D = Creating Awareness
-Intro = Creating Awareness
-Growth = Differentiation
-Maturity = Maintain MS / Stay Profitable
-Decline = Reducing Price if discontinuing
Definition of Extension Strategies
A technique used to extend the life of a product beyond its life cycle
How does Product Related strategies work
Work by changing or modifying the product
-Product Improvement (iPhones)
-Line Extensions (Coke Zero, Diet Coke)
-Repositioning (IBM’s move to corporate)
How does Promotion Related strategies work
Work by changing the marketing and promotion of a product
-Changes to advertising
-Price Promotions (Cyber Monday)
-Sales Promotions (Loyalty schemes)
High MS, High GR
Star
High MS, Low GR
Cash Cow
Low MS, High GR
Question Mark
Low MS, Low GR
Dog
Definition of Boston Matrix
Tool used to analyse a product portfolio to make strategic decisions
Features of a Cash Cow
-Positive cash flow
-Needs minimal resources
-Focus on maintaining market share
Features of a Question Mark
-Often negative cash flow
-Needs investment
-Focus on increasing market share
Features of a Star
-Positive cash flow
-Needs minimal resources
-Focus on building recognition
Features of a Dog
-Negative cash flow
-Would need heavy investment
-Focus would be to divest
What Marketing Strategy is appropriate for Mass Market
-Mass Media (Advertising)
-Focus on building brand awareness
What Marketing Strategy is appropriate for Niche Market
-Targeted Marketing (May use Social Media)
-Focus on building relationships
What Marketing Strategy is appropriate for B2B
-More in person or case study based
-Focus on demonstrating product
What Marketing Strategy is appropriate for B2C
-More personal (Social Media, Influencer etc)
-Focus on brand loyalty and positive customer experience
How does Customer Service build loyalty
Customers have a more positive experience and are more likely to return and recommend
How does Loyalty Schemes build loyalty
Way to get repeat customers by offering rewards or discounts
How does Saver Schemes build loyalty
Way to offer discounts or special pricing to customers to save money
