1.3.5. Marketing Strategy

Question 1

Marketing Strategy:

Answer 1

A set of plans to achieve a marketing objective

Question 2

Product Life Cycle:

Answer 2

1) Introduction: sales= low but fast as demand is low but growing as product is new ( marketing/ R&D costs= high, so there is no profit)

2) Growth : Sales start to rise. Costs start decreasing due to economies of scale

3) Maturity : Sales= still increasing but at a slower rate ( costs = low due to economies of scale , profits are at its highest)

4) Decline : sales decrease as demand shrinks. ( only production costs exist. )Product starts to lose money and can be withdrawn

5) Extension Strategy : tries to lengthen life of a product ( advertisement, promotion, offers)

Question 3

Market Share:

Market Growth:

Answer 3

The portion of a market controlled by a particular company
( e.g. of all shops 30% = Tesco

Increase in sales or demand for a product or service within the market overtime
(e.g. the increase in the no. Of supermarkets altogether)

Question 4

Boston Matrix

Answer 4

A grid which categorises a businesses products according to their market share and market growth

Question 5

1) Star 3) Problem Child

2) Cash flow 4)Dog

Answer 5

1) - fairly new, successful products
- sales from product trials
- growth stage

2) - established products
- high customer loyalty- repeat purchases
- Maturity stage

3) - low % market share in fast growing market
- potential for future (Intro)
- pose problems for firms

4) - unsuccessful product
- should be withdrawn from sales
- decline stage