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1.3.5. Marketing Strategy - Coggle Diagram
1.3.5. Marketing Strategy
The Product Life Cycle
Growth
- sales begin to grow rapidly, the business may become profitable in this stage, promotion is needed too gain brand loyalty
Maturity
- where sales growth levels off and average costs fall, the brand become established and less promotion is needed
Introduction
- where the product is introduced to the market, slow sales, high costs like promotion.
Decline
- falling sales, and drops in price likely to keep demand
Product
Development
- R&D, high costs and no revenue
Extension Strategy
- used when sales are slowing to increase sales. Can be a re-launch of the
product
with a new image, aesthetic or function, or by
promoting
it to a new market using new promotional strategies such as re-branding
Boston Matrix
a method of analysing a company's products in terms of their market share and growth potential
Star
- High market share and high growth, likely to be profitable, heavy investment in promotion is needed
Cash Cow
- High market share and low growth - established product, strong cash flow, little need for investment
Question Mark / Problem Child
- Low market share and high growth, marketing attention needed
Dog
- Low market share and low growth, product may be obsolete
Product Portfolio Analysis
the collection of products a business is currently marketing, analysed by the Boston matrix
Marketing Strategies
Niche Markets
Price
- more flexibility as there is less competition, meaning high prices can be charged
Promotion
- tends to be more targeted
Product
- will be different and designed to meet customer needs
Place
- often more selective and likely to distribute privately
Mass Markets
Place
- using multiple distribution channels and the internet, allowing small businesses to go to mass markets
Price
- likely to be similar and could result in a price war. Prices are normally set at the 'going rate'
Product
- differentiation is needed to make it stand out from the many close substitutes
Promotion
- High investment in advertising
Business to Consumer (B2C) - not looking to build up long term relationships with the supplier, wants to know the benefit of the product, and have a variety of distribution channels for convenience
Business to Business (B2B) - adverting needs to be informative rather than persuasive, focus on offering a good product and a quality service
Developing Customer Loyalty
Communication - builds relationships between business and consumer
Customer Service - high quality service means the customer is more likely to return
Customer Incentives - such as points developing loyalty to go to the same providers
Personalisation - builds a relationship on a personal level
Preferential Treatment - VIP services to selective customers to give a good experience and make them return