Marketing

Question 1

4 Elements of the boston matrix

Answer 1

cash cow
star
dog
?

Question 2

What is a star?

Answer 2

products have a high market share in a fast growing market

Question 3

What is a cash cow?

Answer 3

products have a high market share in a slow growing market

Question 4

What is a ?

Answer 4

have a low market share in a fast growing market

Question 5

What is a dog?

Answer 5

have a low market share in a slow growing market

Question 6

5 Stages in product life cycle

Answer 6

development and reasearch
introduction
growth
maturity and saturation
decline

Question 7

Growth

Answer 7

sales begin to rise
a profit may be made if previous costs have been covered

Question 8

Maturity and saturation

Answer 8

sales are at their orion
advertising can be reduced as product is well known

Question 9

Decline

Answer 9

sales begin to fall

Question 10

Introduction

Answer 10

product is launched onto market
advertising costs will be high

Question 11

Research and development

Answer 11

product is not on the market yet
no sales are made

Question 12

What is a wholesaler?

Answer 12

the role of a wholesaler is to buy bulk orders from the manufacturer and divide them into smaller amounts to sell onto the retailer or consumer

Question 13

Costs/drawbacks of a wholesaler being used

Answer 13

manufacturer looses control of how the product is sold and marketed which may damage the reputation of the manufacturer if the product is not sold correctly

Question 14

Benefits of a wholesaler being used

Answer 14

Wholesaler and repackage and label products in smaller quantities meaning less work/costs for the manufacturer

Question 15

costs/drawbacks of a retailer being used

Answer 15

manufacturer looses control of how the product is sold and marketed which may damage reputation of the manufacturer

products are sold next to the competition

Question 16

Benefits of a retailer being used

Answer 16

convenience as retailers are located close to customers

Retailers can provide customers with information about the product

Question 17

examples of retailers

Answer 17

independent stores (newsagents), supermarkets, department stores (John Lewis), discount stores (Poundland)

Question 18

Telesales and disadvantages, advantages

Answer 18

short for telephone sales
reach more customers than in person sales
customer cannot actually see product other than on website could lead to unhappy customers

Question 19

Why do businesses use extension strategies?

Answer 19

a business will try to extend the life cycle of a product and prevent it from going into decline. To do this they need to keep people interested to make more sales

Question 20

What are the 5 extension strategies?

Answer 20

product differentiation
reducing the price of the product
rebranding the product
repositioning the product
increasing marketing activity

Question 21

Product differentiation

Answer 21

This means making a product stand out from its competitors. USP is a good way to do this

Question 22

Reducing price of product

Answer 22

When the product reaches maturity it may face competition

Question 23

Rebranding the product

Answer 23

tired looking branding can put customers off. New will appeal to customers

Question 24

Repositioning the product

Answer 24

involves expanding new market for a product and reviving it e.g. a different size of the product

Question 25

increasing market activity

Answer 25

running new advertising campaigns and sales promotion can attract new customers or online old ones the product still exists