1.3.5.Marketing Strategy

Question 1

Product life cycle

Answer 1

PLC-Concerned with individual products an concerned with sales over time

1.Development-Highest costs due to research etc
2.Introduction(Question mark)
3.Growth(Stars)
4.Maturity-sales at peak with +ve cash flow (Cows)
5.Decline(Dog)

Extension strategy- extend life of product
-Product related extension: changing or modifying product to make more appealing to customers
-Promotion related extension:changing marketing and promotion of product to extend its life cycle ie. Black Friday, loyalty cards

Question 2

Boston’s matrix

Answer 2

High MS Low MS
High MG Stars Question Mark
(needs investment)

Low MG Cows Dogs
(minimal advertising) (no profit made)

BM-Concerned with firms portfolio of products. Focuses on cash flow from its products.

Product portfolio-Assesses the position of each product or brand in a firms portfolio to help determine right marketing strategy to use.