9. Marketing objectives and strategy Flashcards
1
Q
Marketing objectives:
A
- Increase market share
- Increase revenue
- Build a brand
2
Q
The product life cycle:
A
- Introduction
- growth
- Maturity and saturation
- Decline
3
Q
Introduction (Product life cycle)
A
- At the start of the stage, the product will be launched and sales will be low as it is new to the market
- Costs are incurred when the product is launched
- It may be necessary to build a new production line or plant
- A business is also likely to spend in promotion to make consumers aware of the new product
4
Q
Growth (Product life cycle)
A
- Once the product is established and consumers are aware of it, sale may begin to grow rapidly
- Unit costs may fall as production increases so the produc becomes more profitabile.
- If it a new product and there is a rapid growth in sales, competitors will launch there own versions, therefore leading to a slowdown of the rise in sales.
5
Q
Maturity and saturation (Prooduct life cycle)
A
- Growth in sales will end and the product has become established with a stable market share.
- Sales will have reached the maximum point and competitors will have entered the market to take advantage of profits.
- Some firms will be forced out of the market as there are too many firms compeating for consumers.
- Many business use extension strategies to extend the life of their product.
6
Q
Decline (Prodcut life cycle)
A
- For the majority of the products, sales will eventually decline, usually due to a change in in consumers taste, new technology or the introduction of new products.
- Profit is still possible if a high price can be charged and there are low costs in promotion or other costs.
7
Q
Extension strategies:
A
Product adjustments and Promotion
8
Q
Product adjustment (extension strategies)
A
- Updating the product (new car models)
- Making improvements (computers are faster and more memory)
- Extend product range (crisps having new flavours)
- Changing the packaging to give the impression the product has changed
9
Q
Promotion (extension strategies)
A
- Advertise many uses
- Finding new markets such as serve in another region or country
- Investment in advertising can boost sales
- Encourage more frequent use of the product
10
Q
Advantages of product life cycle
A
- Give managers the ability to forecast product direction and plan for timely execution of relative competitive moves
- Helps to formulate marketing mix decisions
- Explanatory tool
- Determine when it’s reasonable to eliminate declining products
11
Q
Disadvantages of product life cycle
A
- Difficult to foresee transitions
- Difficult to determine what stage the porduct is in
- Not all products go through every stage
- Product may remain in stage for a long time
12
Q
Product portfolio
A
Made up of product lines (grouped of similar products gouped together)
13
Q
Product development process
A
- Generate ideas
- Analysis
- Development
- Test marketing
- Launch
14
Q
Product desing mix
A
- Function
- Economic manufacture
- Aesthetics
15
Q
Design mix & social trends
A
- Waste Minimisation
- Design for Re-Use
- Recycling
- Ethical sourcing
16
Q
Social trend adaption benefits
A
- Less Wastage & higher EOS
- Products are more likely to be popular
- Social Trend USP
- Good corporate citizen
