Marketing Strategy and Strategic Management Lecture Notes

Vocabulary-style flashcards covering the Product Life Cycle, Promotional Mix, International Entry Strategies, PESTLE, SWOT, BCG and Ansoff Matrices, Porter's Generic Strategies, the Marketing Mix (4Ps), STP, and Consumer Buying processes.

Product Life Cycle (PLC)

The description of the stages a product goes through from when it is developed until it is removed from the market, consisting of $4$ main stages.

Product Development Stage

The initial stage of the PLC where a product idea is researched and developed, resulting in high costs, losses, and $0$ sales revenue.

Value-based Pricing

A pricing strategy used during product development where the price is determined by the value customers believe the product provides.

Introduction Stage

The PLC stage where the product enters the market, sales are low, profits are low or negative, and promotional costs are high.

Market Penetration Pricing

A strategy used in the introduction stage characterized by setting a low initial price to attract customers quickly.

Price Skimming

A strategy used in the introduction stage characterized by setting a high initial price to recover development costs.

Growth Stage

The stage of the PLC featuring a rapid increase in sales, entry of competitors, and increasing profits.

Maturity Stage

The stage where sales reach their highest level, the market becomes saturated, and competition is intense.

Decline Stage

The final stage of the PLC where sales decrease, customer preferences change, and profits decline.

Harvest

A decline stage strategy focused on reducing costs and maximizing remaining profits.

Promotional Mix

A strategy explaining how a business communicates with customers to inform, persuade, and remind them about products.

Advertising

Paid communication through television, radio, social media, or newspapers used to reach many customers and build brand awareness.

Sales Promotion

Short-term incentives such as discounts, coupons, free samples, and competitions designed to increase immediate sales.

Personal Selling

Direct communication between a salesperson and a customer through sales representatives or store demonstrations.

Public Relations (PR)

Activities used to create a positive company image, including sponsorships, press releases, and community activities.

Digital Marketing

Low-cost marketing using online platforms like Instagram, Facebook, and email to target specific customers.

Exporting

An international entry strategy of selling products produced in the home country to customers in another country.

Joint Venture

An entry strategy where $2$ companies from different countries work together and share ownership, costs, and risks.

Foreign Direct Investment (FDI)

When a company establishes operations directly in another country by building factories or opening branches, allowing for full control.

Standardization

An international marketing strategy involving selling the same product and using the same marketing strategy globally to lower costs.

Adaptation/Customization

Changing products or marketing strategies to suit local markets and satisfy local customer needs and cultures.

PESTLE Analysis

A tool used to examine external factors affecting business decisions: Political, Economic, Social/Cultural, Technological, Legal, and Environmental.

SWOT Analysis

A tool used to evaluate internal factors (Strengths and Weaknesses) and external factors (Opportunities and Threats).

BCG Matrix

A strategic tool used to analyze products based on market growth and market share, categorizing them as Stars, Cash Cows, Question Marks, or Dogs.

Stars

Products in the BCG Matrix characterized by high market share and high growth that require investment.

Cash Cows

Products in the BCG Matrix characterized by high market share and low growth that generate profit.

Question Marks

Products in the BCG Matrix characterized by low market share and high growth that require investment decisions.

Dogs

Products in the BCG Matrix characterized by low market share and low growth that may be removed.

Ansoff Matrix

A strategic tool used to identify growth strategies based on combinations of products and markets.

Market Penetration (Ansoff)

A growth strategy focused on increasing sales of an existing product in an existing market.

Market Development

A growth strategy focused on selling an existing product in a new market.

Product Development (Ansoff)

A growth strategy focused on introducing a new product to an existing market.

Diversification

The highest risk growth strategy involving the introduction of a new product into a new market.

Cost Leadership

One of Porter's Generic Strategies where a business aims to become the lowest-cost producer to attract price-sensitive customers.

Differentiation

One of Porter's Generic Strategies involving offering unique products with better quality or strong branding that customers value.

Niche Strategy

One of Porter's Generic Strategies focusing on a specific customer group to build loyalty and reduce competition.

Marketing Mix ($4Ps$)

A strategy encompassing Product, Price, Place, and Promotion to satisfy customer needs and communicate value.

Segmentation

Dividing customers into groups based on geographic, demographic, psychographic, or behavioural characteristics.

Targeting

The process of selecting the specific customer group a company wants to serve through mass, differentiated, or niche marketing.

Positioning

The process of creating a clear and distinct image of a product in the minds of customers.

Consumer Buying Decision Process

A $5$-step process for existing products: Need Recognition, Information Search, Evaluation of Alternatives, Purchase Decision, and Post-Purchase Behaviour.

New Product Adoption Process

The process customers go through when encountering a new product: Awareness, Interest, Evaluation, Trial, and Adoption.