Marketing Objectives And Strategy Flashcards
Marketing objectives
-Increase market share. Gives competitive advantage. Ex, economies of scale.
-Increase revenue, increases profit.
-Build a brand, giving product brand names.
a business is more likely to achieve its marketing objectives fi they are SMART.
Product life cycle
-Development, product being researched and designed. Developed and tested.
-Introduction: product launched
-Growth: product is established in the market and sales grow, unit costs fall, product becomes profitable.
-Maturity: product sales are at peak, business may use extension strategies.
-Decline: low revenue, sales decline. May use extension strategies.
Extension strategies
-Product adjustments: improve products, new flavors.
-Promotion:
Product portofolio
It’s made up of product lines (group of similar products). Check diagram (fig 4).
Say that a business over a particular time period aims to launch three products. By organising their launch at regular intervals, there is never a gap in the market. As one product is declining, another is growing and further launches are planned.
The Boston matrix
Stars: High market growth and share. Profitable. But a business will need to invest in the product to
cope with a growing market and growing sales. (New production facilities,. Net cash flow could be 0, investment is high.
Cash cows: high market share low market growth. Very profitable. Low chance of increasing profits. No need for investment.
-Question marks: low market share, high market growth. Not profitable, but investment will be needed as it can grow in the market.
-Dogs: Low market share and growth. Maybe profitable. No investment.
Marketing mix
refers to those elements of a firm’s marketing strategy that are designed to meet the needs of its customers.
Product
- How consumers use the product. A ladies shoe manufacturer, for example, will understand that customers will need different footwear for going to work and for attending a dinner party.
-The appearance of a product. Businesses need to consider the different colours, sizes, shapes
and styles when designing products.
-Financial factors. Businesses need to develop
products that customers can afford to buy.
- A product’s unique selling point (USP). This is the aspect or feature of the product which distinguishes
it from that of a rival. fI a business can develop a USP ti may gain a competitive edge in the market.
Price
The pricing policy of a business is often a reflection of the market at which it is aiming.
Marketing strategies
A marketing strategy is a set of plans that aim to achieve a specific marketing objective.
Strategies for mass markets
-Product: Many companies will be competing for customer attention. Developing a USP would help.
-Price: The prices charged by businesses in a mass market are likely to be very similar. Businesses fear a price war, so they are happy to charge the going rate.
-Promotion: Business invest heavily in promotion. Ex, adverts shown in TV attract a lot of customers but are expensive.
-Place: Businesses selling fast-moving consumer goods will target supermarkets, wholesalers, independents and any other outlet that is suited to their particular product.
Strategies for niche markets
-Product: is very important the quality of the product. As customers are prepared to pay high prices.
-Price: Businesses can charge high prices as there’s little competition.
-Promotion: It would be very targeted. They have to chose very carefully how and where to promote theirselves as they have little amount of money.
-Place: Business are likely to handle distribution privately or with one distributor.
STRATEGIES FOR BUSINESS-TO-BUSINESS (B2B) AND BUSINESS-TO-CONSUMER (B2C)
MARKETS
Outbound marketing strategies: This involves directing marketing material at potential customers whether they are expecting it or not. Ex, sending email. However, many people ignore it or get annoyed.
Inbound marketing strategies: This involves attracting potential customers to websites when they are looking for suppliers or solutions to problems. Ex, blogging, social media marketing, free e-books.
Hybrid strategies: This involves a combination of both outbound and inbound methods.
How to develop customer loyalty
-Communication: A business must keep customers informed about new things.
-Customer service: Customers are more likely to return to a business if they receive high-quality
customer service.
-Customer incentives: Many businesses reward their customers fi they keep returning.
-Personalisation: Some businesses try to deal with customers on a personal level. They may address individual customers by their name.
-Preferential treatment: Ex, VIP
