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BUSINESS THEME 1 - TOPIC 1.3 CONTINUED - Coggle Diagram
BUSINESS THEME 1 - TOPIC 1.3 CONTINUED
changes in distribution to reflect social trends
1)
online distribution
2)
movement away from manufacturing products to providing services
online retailing advantages
to consumers
fast and convinient
accesible to more people
saves time
to firms
cheaper
wider audience
can tailor products to location
product life cycle
1) development - products must be researched, designed and built before they can be sold. This costs money but there are no sales. Some never make it to 'introduction'
2) introduction - most products launched on to the market will be backed up by some advertising and promotion
3) growth - sales + profits rise
4) maturity + stabilisation - product reaches a peak in terms of sales
5) decline - towards the end of the maturity stage the market becomes saturated, competitors bring out products which take sales away
extension strategies
launch complementary products
change shape or packaging
find a new use for product
improve spec of product
find product a new market
persuade customers to use more
usefulness
indicates when to use extension strategies
can plan ahead
evaluate competition
limitations
not all products follow cycle
doesn't guarantee the length at each stage
the boston matrix
this is a tool to help firms analyse their product portfolio
diagram
usefulness
can plan strategies
know when to stop and start making new products
limitations
doesn't tell you profits
only good if made well
doesn't give reasons why
high market share doesn't equal high profits
marketing strategy
a
marketing strategy
is a medium to long term plan for achieving your objective
for mass markets...
brands need to be differentiated to stand out
if successful firms will...
have high distribution levels
control over pricing
for niche markets
patience and distinctive products
consumer markets (B2C)
focus on marketing mix
appeal to consumer
business to business markets