Marketing Strategy Flashcards
Marketing
The management process of identifying anticipating and satisfying consumer demands for profit
Marketing strategy
The methods used by a business to achieve their marketing objectives
Product lifecycles
From research and development at the start to launch (birth) and through to decline (death)
Product development
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
Introduction to product to market
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
Growth phase
Growth phase products are enjoying rapid growth in sales and profits
Maturity phase
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
Decline phase
Decline phase products may be limited in production
Product lifecycle extension strategies
- updating packaging
- adding more or different features
- changing target market
- advertising
- price reduction
Extension strategies
A. Change the product
• Development or modification of a product
B. Change the promotion
• Rebranding or relaunching of products
Product modification
Extension strategies are designed to extend the life of the product before it goes into decline
Rebranding
Changing the logo to make it more attractive or colours of packaging
Product portfolio
A product portfolio is the collection of all the products and services offered by a company
Boston matrix
The Boston matrix is a marketing planning tool which helps managers to plan for a balanced product portfolio
Uses of Boston matrix
• The Boston matrix is a good starting point when reviewing an existing product line to decide future strategy and budgets
Limitations of Boston matrix
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
Mass market strategies
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
Niche market strategies
• 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
B2b marketing
B2B stands for Business to Business marketing. Many businesses just deal with other businesses rather than consumers.
B2C marketing
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
Customer loyalty
Businesses have discovered that it is much cheaper to keep a loyal customer than to gain new customers through marketing
Effective customer service
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
Loyalty cards
They can improve customer retention e.g. a coffee shop making sure customers return by offering a stamp
Saver schemes
Each week consumers can carry out their shopping and pay into a saver card – ready for Christmas
