Edexcel-Marketing strategy 1.3

Question 1

Product life cycle

Answer 1

A theoretical model which describes the stages a product goes through over its life.

Question 2

five steps in product life cycle

Answer 2

research and development
introduction
growth
maturity
decline

Question 3

key uses of life cycle

Answer 3

forecast future sales
helps with positioning and targeting
manage product portfolio

Question 4

Extension strategies

Answer 4

To maintain sales so products dont reach decline.

Question 5

Product extension

Answer 5

Changing or modifying products

Question 6

Product extension example

Answer 6

Line extensions
Product improvements
Repositioning to a different market

Question 7

Promotion extension

Answer 7

Involves changing marketing and promotion

Question 8

Promotion extension example

Answer 8

Recreating adverts
Price and sales promotions

Question 9

Boston Matrix

Answer 9

A tool used to analyse Product portfolio’s and make strategic decisions about products

Question 10

Product portfolio

Answer 10

A range of items sold by a business

Question 11

4 categories of Boston matrix

Answer 11

Cash cow
Question mark
Star
Dog

Question 12

Purpouse of categorising

Answer 12

Allows businesses to relocate resources more effectively

Question 13

Cash cow

Answer 13

High market share in a mature market.
Maturity in product life cycle.

Question 14

Question mark

Answer 14

Low market share in a dynamic market.
Introduction in product life cycle.

Question 15

Star

Answer 15

High market share in a dynamic market.
Growth in product life cycle.

Question 16

Dog

Answer 16

Low market share in a market that’s not growing.
Decline in product life cycle.

Question 17

B2B

Answer 17

A business sells products to other business.

Question 18

B2B example

Answer 18

Software company selling to other businesses

Question 19

B2B Advertising

Answer 19

Emphasis on how product will benefit the business

Question 20

B2B Advertising example

Answer 20

Case studies

Question 21

B2C

Answer 21

Business selling to consumer.

Question 22

B2C example

Answer 22

Clothing retail store

Question 23

Developing customer loyalty

Answer 23

Repeat business occurs which reduces marketing costs

Question 24

Developing customer loyalty examples

Answer 24

Customer service
Loyalty cards
Saver schemes

Question 25

Research and development

Answer 25

Focus on designing and developing the product
cash flow negative

Question 26

Introduction

Answer 26

Product is launched
Cash flow negative

Question 27

Growth

Answer 27

Sales begin to increase
cash flow positive

Question 28

Maturity

Answer 28

Slowing of sales
Cash flow positive

Question 29

Decline

Answer 29

Sales decline
Cash flow negative