Marketing strategies Flashcards
(23 cards)
What is the product life cycle?
- Development
- Introduction
- Growth
- Maturity
- Decline
What is the Boston Matrix?
Model of Product Portfolio Analysis:
1. Stars = high share, high growth
2. Cash Cows = high share, low growth
3. Question marks/Problem child = low share, high growth
4. Dogs = low share, low growth
What is a Mass Market?
Appeal to a wide audience
Less unique
Low average costs - Econ of scale
Greater affordability
Lower profit margins
What is a Niche Market?
Focuses on a specific market segment
High average costs
Lower sales volume
Higher profit margin
What is B2B?
Business to Business
what is B2C?
Business to Consumers
Types of market research
Quantitative
Qualitative
Added value
the difference between costs of creation and selling price
Tools of product orientation
Product research
Product testing
Product focus
Tools of market orientation
Market research
Market testing
Customer focus
Product orientation
A product orientation is an approach to marketing that focuses on the characteristics of the product rather than the needs of the consumer
The emphasis will be on creating a product first and then finding a market
The business has a belief that the product is superior, i.e. it will sell itself
Market orientation
Market orientation is an approach to marketing that focuses on the needs of consumers and uses this information to design products that meet customer needs
Consumers are at the centre of marketing decisions
Products will be developed which respond to consumer needs
The business is likely to benefit from increased demand, increased profits, and a valued brand image as its products are desirable
E.g. Universities often develop new courses based on the feedback they receive from students and employers
Primary research
Primary research is the process of gathering information directly from consumers in the target market using field research methods such as surveys, interviews, etc
This gathers information that is new and does not necessarily exist in any format
Secondary research
Secondary research involves the collection, compilation, and analysis of data that already exists
Typical methods include purchasing market reports from specialist companies or accessing government statistical portals which provide useful information
Market segmentation
Market segmentation is the process in which a single market is divided into submarkets, or ‘segments’
Each segment represents a slightly different set of consumer characteristics
Firms often segment their markets according to factors such as income, geographical location, religion, gender, or lifestyle
Market positioning
Market positioning refers to the process a business goes through when launching a new product or service
The business decides where they want to position the product in the market with regard to price, quality, branding and customer perception
Market mapping
Market mapping is a tool for identifying the position of a product within a market
A market map refers to a two-dimensional diagram that shows the attributes or characteristics of a product in comparison to rivals’ products
Only two criteria can be chosen e.g. price and quality, age and income, etc.
If there were no spaces left on the market map, it indicates that the market is saturated
Competitive advantage
Competitive advantage refers to the features of a business and its products that are perceived as superior to its rivals by customers
It is how a firm’s product is made both distinctive and defensible
Distinctive means that it is different from the competitors
Defensible means that the business can prevent competitors from copying it
Sources of competitive advantage
Quality
Design
Delivery times
Customer service
Price
Reliability
Brand image and reputation
Ethical stance
Product differentiation
Product differentiation is an attempt by a business to distinguish its products from those of competitors
Successful product differentiation helps the business to increase demand for its products, increase brand loyalty and allow the business to charge higher prices
Tangible vs perception
Product differentiation may be tangible (clearly visible) or it may be a perception that is created about the product in the consumer’s mind
Methods of adding value
Design
Convenience
Customer service
Customisation
Packaging
Functions and features
Marketing and branding
Product differentiation
