P1 Hw 17- Marketing Strategy Flashcards
Product lifecycle
A model showing the lifespan of a products sales from launch to being taken off the market
Extension strategies
Ways in which a business modifies a product to appeal more to customers and maintain skews maturity
Boston matrix
A tool to analyse a products market share and growth within a market
Product portfolio
The range of products a business sells
Customer loyalty
Having customers that repeatedly purchase from your business
Barrier to entry
A factor that can prevent competitors from entering a market
E-Commerce
Selling and buying goods online
M-Commerce
Buying and selling goods through devices like phones
Impulse purchasing
Making an unplanned purchase
Intermediary
Businesses who work as the middle man between other businesses or customers
Product range
All products that a business sells
B2B
Business making transactions with other businesses
B2C
Business selling directly to customers
Homogenous good
A good that is identical in quality and features
Advantages of the product lifecycle
- Allows businesses to understand how each stage influences the marketing mix
- helps decision making
- can be changed to fit different products
Disadvantages of the product lifecycle
- assumes every product will follow same pattern
- overly simplistic
Advantages of Boston matrix
- Helps identify new opportunities
- identify where each product is positioned in the market
Disadvantages of the Boston matrix
- oversimplified
- subjective
- only considers 2 factors (market share and market growth)
4 categories of Boston matrix
Rising star
Cash cow
Problem child
Dog
Describe each category in the Boston matrix
Rising star- holding. Invest heavily in promotion, high sales revenue, lots of competition
Cash cow- milking. Wouldn’t use lots of promotion, not much competition, high sales revenue
Problem child- building. Lots of promotion, low sales revenue, lots of competition
Dog- divesting. Get rid of product or improve it, very low sales revenue
Portfolio analysis
Assessing all investments to see if their performance is meeting goals and requirements
