marketing mix and strategy:marketing objectives and strategy

boston matrix

boston matrix

a 2×2 matrix that analyses a prodct portfolio according to the growth rate of the market and the relaive market share of products within the market

extension strategies

methods used to prolong the life od a product

marketing mix

the mix of elements used by a company usually the 4 ps(product, place, promotion and price)

marketing objectives

a goal that business attempts to achieve through its marketing strategies/activities

marketing strategy

a set of plans that aim to achieve a firm’s merketing objectives

product lines

a group of products that are very simalar

product portfolio

the collection of products a business is currently marketing

unique selling point

the aspect of feature of the product that differentiates it from its rivals

3 main marketing objectives

• increase market shre

• increase revenue

• build a brand

why increase market share

• creates a competitive advantage

• creates an economy of scale so the firm has control over the pricing

• gain influence over supplier’s costs

• makes it harder for competition to enter a market

why increase revenue

• increases chances of making a profit

• alows a firm to distribute resources /budget on different business activities

• enables a firm to adapt to a dynamic market

• improves investor perception

why build a brand

• to generate large returns

• allows competition in highly competitive markets

• increases customer trust

• supports marketing and advertising

SMART GOALS

S- specifc

M- measureable

A-agreeable

R-realistic

T-time specific

stages of the product life cycle

• product development

• introduction

• growth

• maturity

• decline

development in PLC

product is researched, designed, tested, investigated and deveoped. after this a firms decides weather it willbe released into a market

introduction in PLC

low sales and finances are focused on promotion and distribution.

no profit is made

growth in PLC

sales grow with the customer loyality

production costs decrease

a change in pricing is then considered

maturity/saturation in PLC

a stabe/predictable number of sales which will not increase

profit is made and less pomotion i required as the product is well established in the market

decline PLC

• less slaes due to change in consumer tastes

• appeal of the product decreases

• premium prices cannot be charged anymore

2 extension strategies + examples

product adjustments:

• improving the nature of the product

• changing the aesthetics (to add value)

• extend the product range

• changing the packaging

promotion:

• new uses of the product

• advertising

• searching to new markets

• advertising frequently

• encourage frequent usage

whats in a product portfolio

collection of products made up of product lines of simalar products

when are products released

launching at regular intervals whe if 1 is in decline another is at growth

star

market growth: high

market share:high

• profitable

• low net cash flow

• profits used for investment

cash cow

market growth: low

market share: high

• profitable

• high net cash flow

question marks

market growth:high

market share:low

• no net cash flow

• not profitable

dog

market growth:low

market share:low

may earn profit

balancing product lines

• equal amounts of products are required in all 4 catgories

• this allows a firm to survive and remain profitable

appropriate finance for the boston matrix

stars→ become cash cows and the brand needs to be built

cash cows → milked for cash to maintain sales and market share by advertising

question marks/dogs→ build a brand

harvest by cutting promotion and rasing price

divest by withdrawing all products from the market

what are the 4 Ps

PRODUCT

PRICE

PROMOTION

PLACE

why is the marketing mix used

to satisfy the needs and wants of market by achieving company objectives

factors to take into account for a new product in the market

• appearance

• financial factors

• products life cycle

• unique selling point

• use of the product

product

• quality

• packaging

• branding

• services

• warranties features

price

• price strategy

• price

• allowances

• discounts

• payment terms

place

• channels

• transport

• market covverage

• assortement

• location

• inventory

promotion

• sales promotion

• advertising

• public relations

• direct marketing

marketing strategies for mass markets

product: very competitive, needs to be differentiated , develop a usp

place: price needs to be simalar, lower prices to be a price leader

promotion: invest heavily on advertising

place:distribute using multiple channels

marketing strategies for niche markets

product:very differentiated and specific, designed to meet specific eeds

price: flexible pricing without loss of market share

promotion: more targeted and use more specialised publications

place: more selevtive distribution and exclusive distributors

marketing strategies for business to business relation

• emphasis on building relationships and networking

• promotion usually demonstrates the value of a product and is more technical about its features that are values to other businesses

marketing strategies for business to consumer relations

• emphasis on brand loyalty and customer service

• social media ads and influencer marketing campaigns

• emotional messages

out-bound strategies

• direct marketing to the consumer

• can damage reputation and increase satisfaction

• waste resources

• does not garantee sales

in-bound strategies

blogging, social media and serch engine optimisation

requires effort and resources but is more succesfull than out bound

hybrid strategies

use outbound and inbound

developing customer loyalty

• communication

• customer service

• customer incentives

• personalisation

• preferential treatment