Product Life Cycle

Question 1

Extension strategy

Answer 1

Used at the end of a product life cycle to boost sales

Question 2

Examples of an extension strategy

Answer 2

Kit Kat— Kit Kat chunky
iPhone, dont release all colours immediately, delay to boost sales later on
Can even just drop price later on

Question 3

Phases of product life cycle

Answer 3

Introduction, growth, maturity, decline

Question 4

Price skimming

Answer 4

Set high price to maximise short term profits , then drop price to attract wider market
- used in high tech companies, allows business to gain premium pricing

Question 5

Price penetration

Answer 5

Set low price, raise it in the future
Attract attention and attract market share

Question 6

Multichannel distribution and example

Answer 6

Range of methods to distribute, attract as many different customers as possible,
Eg- NEXT , app, website, magazine, in person store

Question 7

Intergrated marketing mix

Answer 7

Product life cycle, 7 ps, Boston matrix

Question 8

Boston matrix

Answer 8

Market growth and market share
Question mark, cash cow, star, dog

Question 9

How to keep up with CASH COW

Answer 9

Reminder advertising, competitive pricing strategy, extension strategies

Question 10

How to keep up with STAR

Answer 10

Pursuasive advertisement, premium price, unique product- keep up with high costs

Question 11

How to keep up with PROBLEM CHILD

Answer 11

Informative advertisement, trial price, increase distribution

Question 12

Amazon in marketing mix - e-commerce

Answer 12

Product= digital, online kindle
Price= able to compare more out there so have to be on point with pricing , also save costs on physical stores so more price competitive
Promotion= all items there to promote on one page
Place= opportunity to sell directly to consumer
Process= one click
People= training needs, software
Physical environment= packaging

Question 13

Benefits of e-commerce

Answer 13

+increase market size, more revenue
+ reduced costs, rent, wages
+ convince for shoppers 24/7 access
+ customised products
+ lowers barriers to entry
+ more feedback

Question 14

Drawbacks of e-commerce

Answer 14

• investment required
• training needed
• resistance from some customers
• fewer personal interactions, lack of customer service -wont work for consumers who want the full experience, ie buying a nice car

Question 15

Digital marketing

Answer 15

Social media, emails, search engine( pay to be at top of list) , pop up ads , sms

Question 16

Benefits of digital marketing and what it depends on

Answer 16

+ targeted ads, access to more personal details
Depends on the businesses corperate objectives

Question 17

Benefits of product positioning

Answer 17

Create brand image
Differentiate from comp
Identify closest rivals
Gain info about customer perceptions of your brand

Question 18

Drawbacks of product positioning

Answer 18

Hard and expensive to create brand image
Potential for rivals to enter market
Simplify version of complex environment