Marketing Strategy Flashcards
Define a MARKETING STRATEGY
A marketing strategy is a medium to long term plan for a business to achieve their objectives through the use of their marketing mix.
Define MARKETING TACTICS
Marketing tactics are the tools the business uses in the short term to support its overall strategy.
Define the MARKETING MIX
The marketing mix is a combination of promotion, price, place and product that the business will use to sell its products to its target market. All the elements of the marketing mix should support each other and fit together to create a coherent marketing strategy.
Define a B2B BUSINESS
A B2B business is one that only supplies goods and services to other businesses, not consumers. Examples include business that supply raw materials, manufacturers that sell finished goods to retailers (e.g Unilever) and service providers (e.g. accounting).
What are the differences between B2B and B2C sales?
- Based on relationships with business buyers
- Buyers are sophisticated professionals who know the market well
- Buying process is often long and complicated
- The market is often very small, focus and specialised
- Promotion often has an educational element.
Define the PRODUCT LIFE CYCLE
The product life cycle is a theoretical model that describes the stages a product will go through over its lifetime.
What are the stages included in the product life cycle?
- Development
- Introduction/Launch
- Growth
- Maturity
- Decline
Define an EXTENSION STRATEGY
An extension strategy is a method used to extend the period of time a product spends in the maturity stage of the product life cycle.
What are some examples of extension strategies?
- Resign or restyle the product
- Extend the product range
- Target a new market segment
- Look for alternative distribution channels
- Lower the price
- Change the promotional message
What are the weaknesses of the product life cycle model?
- The shape and duration of the cycle depends on the nature of each product.
- Strategic decisions can impact the cycle
- It can be difficult to recognise where a product is in its life
- Length cannot be reliably predicted
- Decline is not inevitable.
Define a PRODUCT PORTFOLIO
A product portfolio is the number of products or brands that a business has under its control.
Define the BOSTON MATRIX
The boston matrix is a marketing tool that can be used by businesses to help them analyse and manage their product portfolio. It considers two variables: relative market share and market growth rate.
What are the two variables included in the Boston Matrix?
Relative market share and market growth rate.
Describe a star
A star is a product that has high market share in a high growth market. They bring in high levels of revenue but require high levels of promotion. A business will aim to invest in and expand this product as much as possible in order to maximise profit.
Describe a cash cow
A cash cow is a product with high market share in a low growth market. They are often established, ‘stable’ products that can be relied upon to bring in revenue but have low costs as they are well known. A business will aim to hold on to this position in the market or will try to squeeze cash out of the product in order to fund other investments.
