Topic 13

Question 1

Stages of product life cycle -> development

Answer 1

. High costs, no revenue, high risk of failure
Marketing focus -> none

Question 2

Stages of product life cycle -> introduction

Answer 2

. High costs for advertising and distribution + sales are low + product may not be profitable
Marketing focus: heavy promotion to create awareness

Question 3

Stages of product life cycle -> growth

Answer 3

. Rising sales, growing customer base, lower promotional costs
Marketing focus:
. Expanding distributor channels
. Highlighting unique features

Question 4

Stages of product life cycle -> decline

Answer 4

. Profit margins shrink and the product may be withdrawn
Marketing focus:
. Extension strategies
. Discontinuous or sale to another business

Question 5

Types of extension strategies

Answer 5

1. Product adjustments
2. Market promotion
3. Improved services
4. Repackaging and rebranding

Question 6

Boston matrix -> stars

Answer 6

. High market growth + high market share

Question 7

Boston matrix -> cash cows

Answer 7

Low market growth + high market share

Question 8

Boston matrix -> question marks

Answer 8

High market growth + low market share

Question 9

Boston matrix -> dogs

Answer 9

Low market growth + low market share

Question 10

Marketing strategies -> mass markets

Answer 10

1. Product
2. Promotion
3. Place

Question 12

Marketing strategies -> niche markets

Answer 12

1. Product
2. Price
3. Promotion

Question 13

B2B VS B2C

Answer 13

B2B (business to business)
. Focus on reliability, bulk pricin and long-term relationships
B2C (business to consumer)
. Emphasises branding, emotional appeal and convenience

Question 14

Strategies for developing loyalty

Answer 14

1. Costumer services
2. Loyalty schemes
3. Personalization
4. Communication