Marketing Strategy

Question 1

Product life cycle

Answer 1

describes the different stages a product goes through from its conception to its eventual decline in sales

Question 2

Five stages of life cycle

Answer 2

1. Development
2. Introduction
3. Growth
4. Maturity
5. Decline

Question 3

Development

Answer 3

• The focus is on designing and developing the product
• high costs: cash flow is negative

Question 4

Introduction

Answer 4

• The stage begins when the product is launched
• slow sales growth: new to market
• cash flow is usually negative
• Marketing efforts into creating awareness and interest

Question 5

Growth

Answer 5

• The product enters this stage when sales begin to increase rapidly
• increasing production to meet demand
• cash flow is usually positive
• marketing strategy is to differentiate products from its competitors and build brand loyalty

Question 6

Maturity

Answer 6

• Characterised by slowing sales growth as the product reaches its peak in terms of market penetration
• cash flow is usually positive: costs are reduced through economies of scale
• The marketing strategy aims to maintain market share and increase profitability

Question 7

Decline

Answer 7

• when sales decline as product become obsolete
• Cash flow is usually negative as sales revenue declines
• reducing product price to clear inventory

Question 8

Extension strategies

Answer 8

refer to the techniques used by businesses to extend the life of a product beyond its natural life cycle
- boots sales and maintain profitability

Question 9

Product extension strategies

Answer 9

Involves changing or modifying the product to make it more appealing to customers and extend its life cycle
- product improvement
- line extensions e.g Diet Coke
- repositioning

Question 10

Promotion extension stratégies

Answer 10

Involves changing the marketing and promotion of the product to extend its life cycle
- changes to advertising
- price promotions
- sales promotions

Question 11

Boston matrix

Answer 11

a tool used by businesses to analyse their product portfolio and make strategic decisions about each product

Question 12

4 categories of BM

Answer 12

• cash cow
• problem child/question mark
• star
• dog

Question 13

Cash cow

Answer 13

Products with high marient share in a mature market
- positive cash flow, low growth potential
- minimal investment

Question 14

Problem child/question mark

Answer 14

Products with a low market share in a high growth market
- negative cash flow
- potential to become star if business invests
- business may discontinue

Question 15

Star

Answer 15

Products with high market share in a Hugh growth market
- positive chas flow
- building brand recognition
- valuable assets

Question 16

Dog

Answer 16

Products with low market share in low growth market
- negative cash flow
- have no potential
Businesses often divest

Question 17

Mass market marketing

Answer 17

• focus on building brand awareness
• advertising campaigns
• resonate with population

Question 18

Nice market marketing

Answer 18

• advertising campaigns are more targeted
• could use social media
• messages are often more detailed and include technical information

Question 19

B2C marketing

Answer 19

Focuses on selling products DIRECTLY to consumers
- emphasis in buying brand loyalty
- social media ads, influencers
- Message more emotional

Question 20

B2B marketing

Answer 20

• focuses on selling to other businesses
• emphasis on building relationship with other businesses and how your oriduct can help them to be more successful
• messages more technical

Question 21

Ways to develop customer loyalty

Answer 21

• customer service
• loyalty cards
• saver schemes