Marketing Strategy

Question 1

Marketing

Answer 1

The management process of identifying anticipating and satisfying consumer demands for profit

Question 2

Marketing strategy

Answer 2

The methods used by a business to achieve their marketing objectives

Question 3

Product lifecycles

Answer 3

From research and development at the start to launch (birth) and through to decline (death)

Question 4

Product development

Answer 4

This is the first stage of the product lifecycle where a product is designed and market research is analysed to produce a product which will satisfy customer needs

Question 5

Introduction to product to market

Answer 5

The introduction phase will involve high costs in research and development and the product may have been test marketed before launching, so profits may be negative

Question 6

Growth phase

Answer 6

Growth phase products are enjoying rapid growth in sales and profits

Question 7

Maturity phase

Answer 7

Maturity phase products face intense competition now all the producers have joined the market

Market is starting to be saturated – everyone has bought the product who is likely to buy

Question 8

Decline phase

Answer 8

Decline phase products may be limited in production

Question 9

Product lifecycle extension strategies

Answer 9

1. updating packaging
2. adding more or different features
3. changing target market
4. advertising
5. price reduction

Question 10

Extension strategies

Answer 10

A. Change the product
• Development or modification of a product

B. Change the promotion
• Rebranding or relaunching of products

Question 11

Product modification

Answer 11

Extension strategies are designed to extend the life of the product before it goes into decline

Question 12

Rebranding

Answer 12

Changing the logo to make it more attractive or colours of packaging

Question 13

Product portfolio

Answer 13

A product portfolio is the collection of all the products and services offered by a company

Question 14

Boston matrix

Answer 14

The Boston matrix is a marketing planning tool which helps managers to plan for a balanced product portfolio

Question 15

Uses of Boston matrix

Answer 15

• The Boston matrix is a good starting point when reviewing an existing product line to decide future strategy and budgets

Question 16

Limitations of Boston matrix

Answer 16

Products may not be low or high market share they could be medium • High market share does not always lead to high profits, there are high
costs also involved with high market share
• Many people argue this matrix is too simple

Question 17

Mass market strategies

Answer 17

A mass market is one that caters for (almost) everyone, mass marketing is the process of selling products to all consumers regardless of age, gender, etc. in the same way

Question 18

Niche market strategies

Answer 18

• A market segment is consumers who can be grouped in different ways; income, gender, lifestyle, ethnicity, religion, age, interest
• A niche market is one that caters to a small subset of a segment and will target consumers in a very specific way

Question 19

B2b marketing

Answer 19

B2B stands for Business to Business marketing. Many businesses just deal with other businesses rather than consumers.

Question 20

B2C marketing

Answer 20

B2C means business to consumer
• They are not looking to build up long term relationships with the supplier, maybe a one off purchase like a sofa

Question 21

Customer loyalty

Answer 21

Businesses have discovered that it is much cheaper to keep a loyal customer than to gain new customers through marketing

Question 22

Effective customer service

Answer 22

Customer service can be defined as; the assistance and advice provided by a company to those people who buy or use its products or services

Question 23

Loyalty cards

Answer 23

They can improve customer retention e.g. a coffee shop making sure customers return by offering a stamp

Question 24

Saver schemes

Answer 24

Each week consumers can carry out their shopping and pay into a saver card – ready for Christmas