Edexcel-Marketing strategy 1.3 Flashcards
(29 cards)
Product life cycle
A theoretical model which describes the stages a product goes through over its life.
five steps in product life cycle
research and development
introduction
growth
maturity
decline
key uses of life cycle
forecast future sales
helps with positioning and targeting
manage product portfolio
Extension strategies
To maintain sales so products dont reach decline.
Product extension
Changing or modifying products
Product extension example
Line extensions
Product improvements
Repositioning to a different market
Promotion extension
Involves changing marketing and promotion
Promotion extension example
Recreating adverts
Price and sales promotions
Boston Matrix
A tool used to analyse Product portfolio’s and make strategic decisions about products
Product portfolio
A range of items sold by a business
4 categories of Boston matrix
Cash cow
Question mark
Star
Dog
Purpouse of categorising
Allows businesses to relocate resources more effectively
Cash cow
High market share in a mature market.
Maturity in product life cycle.
Question mark
Low market share in a dynamic market.
Introduction in product life cycle.
Star
High market share in a dynamic market.
Growth in product life cycle.
Dog
Low market share in a market that’s not growing.
Decline in product life cycle.
B2B
A business sells products to other business.
B2B example
Software company selling to other businesses
B2B Advertising
Emphasis on how product will benefit the business
B2B Advertising example
Case studies
B2C
Business selling to consumer.
B2C example
Clothing retail store
Developing customer loyalty
Repeat business occurs which reduces marketing costs
Developing customer loyalty examples
Customer service
Loyalty cards
Saver schemes
