Theme 1 - 3.5 Models and Marketing strategy

Question 1

What is the product life cycle ?

Answer 1

The stages a product moves through over time.

Question 2

What is B2B and B2C marketing (business to business/consumer).

Answer 2

Marketing to other businesses/consumers

Question 3

What is the Boston matrix ?

Answer 3

A marketing portfolio tool.

Question 4

What are the 5 stages of the product life cycle ?

Answer 4

• Development>Introduction>Growth>Maturity>Decline

Question 5

Explain the product life cycle stages ?

Answer 5

• Introduction - incurs high costs marketing product to attract consumers in this stage.
• Growth - rapid increase in sales (possibly economies of scale)
• Maturity - increase in competition as more producers have entered market.
• Decline - products reduce in production or become obsolete.

Question 6

What is an extension strategy.

Answer 6

A plan to extend maturity stage of product life cycle.

Question 7

What is promotion.

Answer 7

A way businesses persuade customers to by products (e.g advertisement, discounts).

Question 8

What are the strategies to creating an extension.

Answer 8

• Promoting a product
• Making changes/updating a product.

Question 9

What are the advantages to extension strategies.

Answer 9

• less risky than producing new product
• Builds customer loyalty keeping same brand.
• Cheaper than creating new product.

Question 10

What are the four different sections in the Boston matrix.

Answer 10

• Cash cow > have high market share but low growth and is in maturity phase. e.g coca cola
• Dog > low market share and declining market growth and products in decline phase.
• Question mark > has low market share but high market growth and is likely in introduction phase.
• Star > Product has high market share and high growth and is in growth phase.