1.3.5 Marketing Strategy

Question 1

Definition of Product Life Cycle

Answer 1

A way of describing the different stages a product goes through

Question 2

What are the 5 Stages in the Product Life Cycle

Answer 2

-R+D
-Intro
-Growth
-Maturity
-Decline (+Extension)

Question 3

What is the cash flow at each stage

Answer 3

-R+D = Negative
-Intro = Negative
-Growth = Turning Positive
-Maturity = Positive
-Decline = Turning Negative

Question 4

What marketing is used at each stage

Answer 4

-R+D = Creating Awareness
-Intro = Creating Awareness
-Growth = Differentiation
-Maturity = Maintain MS / Stay Profitable
-Decline = Reducing Price if discontinuing

Question 5

Definition of Extension Strategies

Answer 5

A technique used to extend the life of a product beyond its life cycle

Question 6

How does Product Related strategies work

Answer 6

Work by changing or modifying the product
-Product Improvement (iPhones)
-Line Extensions (Coke Zero, Diet Coke)
-Repositioning (IBM’s move to corporate)

Question 7

How does Promotion Related strategies work

Answer 7

Work by changing the marketing and promotion of a product
-Changes to advertising
-Price Promotions (Cyber Monday)
-Sales Promotions (Loyalty schemes)

Question 8

High MS, High GR

Answer 8

Star

Question 9

High MS, Low GR

Answer 9

Cash Cow

Question 10

Low MS, High GR

Answer 10

Question Mark

Question 11

Low MS, Low GR

Answer 11

Dog

Question 12

Definition of Boston Matrix

Answer 12

Tool used to analyse a product portfolio to make strategic decisions

Question 13

Features of a Cash Cow

Answer 13

-Positive cash flow
-Needs minimal resources
-Focus on maintaining market share

Question 14

Features of a Question Mark

Answer 14

-Often negative cash flow
-Needs investment
-Focus on increasing market share

Question 15

Features of a Star

Answer 15

-Positive cash flow
-Needs minimal resources
-Focus on building recognition

Question 16

Features of a Dog

Answer 16

-Negative cash flow
-Would need heavy investment
-Focus would be to divest

Question 17

What Marketing Strategy is appropriate for Mass Market

Answer 17

-Mass Media (Advertising)
-Focus on building brand awareness

Question 18

What Marketing Strategy is appropriate for Niche Market

Answer 18

-Targeted Marketing (May use Social Media)
-Focus on building relationships

Question 19

What Marketing Strategy is appropriate for B2B

Answer 19

-More in person or case study based
-Focus on demonstrating product

Question 20

What Marketing Strategy is appropriate for B2C

Answer 20

-More personal (Social Media, Influencer etc)
-Focus on brand loyalty and positive customer experience

Question 21

How does Customer Service build loyalty

Answer 21

Customers have a more positive experience and are more likely to return and recommend

Question 22

How does Loyalty Schemes build loyalty

Answer 22

Way to get repeat customers by offering rewards or discounts

Question 23

How does Saver Schemes build loyalty

Answer 23

Way to offer discounts or special pricing to customers to save money