1.3.6 - marketing strategy

Question 1

what are the stages of the product life cycle? what are sales like in each one?

Answer 1

• development - N/A
• introduction - sales are low and rise slowly
• growth - sales begin to rise much more quickly
• maturity - growth in sales now slows and sales stabilise at their highest level
• decline - sales of the product begin to fall

Question 2

issues with the product life cycle

Answer 2

• sometimes it may lead to decisions that actually propel the product into the next stage

Question 3

list the extension strategies

Answer 3

• changes to the product
• changes to promotion

Question 4

list the factors involved in product development

Answer 4

• market research
• product design
• product engineering
• packaging design
• advertising
• pricing
• branding
• research and development

Question 5

list the major issues that can determine the success of product

Answer 5

• understanding the needs and wants of the market
• the creativity with which solutions to problems can be found
• finding and committing the resources needed for the new product development to succeed

Question 6

describe each segment in the boston matrix

Answer 6

• high market growth, high market share (star)
• high market growth, low market share (problem child)
• low market growth, high market share (cash cow)
• low market growth, low market share (dog)

Question 7

what are the strategic choices that portfolio analysis tends to generate?

Answer 7

• building - trying to boost sales of a product
• holding - spending enough money to maintain market share
• milking - taking profits generated without spending heavily on the product
• divesting - getting rid of products in the portfolio

Question 8

define marketing strategy

Answer 8

the term used to describe the general approach to marketing used by a business

Question 9

how can successful marketing strategies be characterised?

Answer 9

• strategy is about the future
• strategy must be achievable
• strategy is company specific

Question 10

benefits of mass market strategies

Answer 10

• high distribution levels
• greater control over advertising and promotion
• a degree of influence over pricing within the market

Question 11

benefits of niche market strategy

Answer 11

• able to meet consumer needs more precisely
• able to charge a higher price than mass market products
• less direct competition

Question 12

list things to focus on with B2C strategies

Answer 12

• maintaining the right image is vital
• continually revisiting the marketing mix
• developing customer loyalty

Question 13

list things to focus on with B2B strategies

Answer 13

• developing customer loyalty
• the specific characteristics the other business is looking for
• price and reliability is more important than emotion