IAL (Edexcel) Unit 1 - Section 3.3.1 Flashcards

Flashcards covering key vocabulary and concepts from IAL (Edexcel) Unit 1, section 3.3.1, focusing on marketing objectives, product life cycle, Boston Matrix, and the marketing mix.

Marketing Objectives

Goals such as increasing market share, sales revenue, and building a brand that lead to less competition, higher prices, better cash flow, and customer loyalty.

Product Life Cycle

Shows the sales of a product over time, helping the business make decisions about changing marketing activities, whether to continue or discontinue a product, and predict the impact on cash flow and profits as a product progresses through the cycle.

Product Life Cycle Extension Strategies (Product)

Involve bringing out updated models, adding extra features, extending the product range, or changing the packaging to make the product more appealing.

Product Life Cycle Extension Strategies (Promotion)

Involve finding new markets, launching an advertising campaign, or encouraging consumers to use the product more frequently.

Boston Matrix

A tool used to help businesses manage their portfolio of different products, to see which will need attention, which will generate the most cash, and which may need to be discontinued. Also known as the BCG Matrix.

Evaluations of Boston Matrix

Helpful for large companies with diverse product portfolios, but may oversimplify and not reflect market dynamics accurately; relies on relative market share and market growth rate, which may not always indicate success or potential.

Relative Market Share

Expressed as a share of the market in relation to other firms in the market; a measure of the product's or brand's strength in the market.

Market Growth

Measure of market attractiveness in terms of the market's increasing size. An increasing market size should make it easier to sell to.

Star Products (Boston Matrix)

Have a high share of a rapidly growing market, requiring high marketing spending to sustain growth and maintain a leadership position.

Question Mark (Problem Child) Products (Boston Matrix)

Have a low share of a rapidly growing market, with negative cash flow and uncertain potential, requiring investment to increase market share.

Cash Cow Products (Boston Matrix)

Have a high share of a slowly growing market, generating large positive cash inflow with little potential for growth, requiring minimal investment.

Dog Products (Boston Matrix)

Have a low share of a slowly growing market with no real potential, suitable for phasing out or selling off, requiring minimal investment.

Marketing Mix

The combination of factors such as Product, Place, Promotion, and Price that influence a customer’s decision to purchase a product.

Marketing Mix - Product

Considerations include how consumers use the product, the appearance of the product, what it costs to make the product, the product’s life cycle, and the USP (if any).

Marketing Mix - Promotion

Providing information about the product or service to encourage customers to buy it.

Marketing Mix - Price

Considerations depend on the market being targeted (e.g., level of competition), the need to cover costs, and the expectations of premium segment customers.

Marketing Mix - Place

Ensuring it is convenient for target customers to obtain and purchase the product or service.

Mass Market Products

Characterized by many competing products that are likely to be close substitutes in very large markets, requiring a USP or strong brand.

Niche Market Products

Designed very carefully to meet the specific needs of the niche, allowing for more flexible pricing.

B2B Marketing

Business-to-business marketing strategies that use a combination of outbound and inbound marketing strategies.

Customer Loyalty

Can be developed through preferential treatment, personalization, customer incentives, communication, and customer service.