Marketing Flashcards
4 Elements of the boston matrix
cash cow
star
dog
?
What is a star?
products have a high market share in a fast growing market
What is a cash cow?
products have a high market share in a slow growing market
What is a ?
have a low market share in a fast growing market
What is a dog?
have a low market share in a slow growing market
5 Stages in product life cycle
development and reasearch
introduction
growth
maturity and saturation
decline
Growth
sales begin to rise
a profit may be made if previous costs have been covered
Maturity and saturation
sales are at their orion
advertising can be reduced as product is well known
Decline
sales begin to fall
Introduction
product is launched onto market
advertising costs will be high
Research and development
product is not on the market yet
no sales are made
What is a wholesaler?
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
Costs/drawbacks of a wholesaler being used
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
Benefits of a wholesaler being used
Wholesaler and repackage and label products in smaller quantities meaning less work/costs for the manufacturer
costs/drawbacks of a retailer being used
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
Benefits of a retailer being used
convenience as retailers are located close to customers
Retailers can provide customers with information about the product
examples of retailers
independent stores (newsagents), supermarkets, department stores (John Lewis), discount stores (Poundland)
Telesales and disadvantages, advantages
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
Why do businesses use extension strategies?
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
What are the 5 extension strategies?
product differentiation
reducing the price of the product
rebranding the product
repositioning the product
increasing marketing activity
Product differentiation
This means making a product stand out from its competitors. USP is a good way to do this
Reducing price of product
When the product reaches maturity it may face competition
Rebranding the product
tired looking branding can put customers off. New will appeal to customers
Repositioning the product
involves expanding new market for a product and reviving it e.g. a different size of the product
increasing market activity
running new advertising campaigns and sales promotion can attract new customers or online old ones the product still exists
