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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
Note 
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