Marketing Objectives and Strategies

Marketing Objectives

  • Increase market share.

  • Increase sales revenue.

  • Build a brand.

    • Leads to less competition, higher prices, EOS, better cash flow, and customer loyalty.

Product Life Cycle

  • Shows sales of a product over time.

  • Helps in making decisions about marketing activities, continuation/discontinuation of a product.

  • Predicts the impact on cash flow and profits.

Product Life Cycle Extension Strategies

  • By adjusting the product:

    • Updated models.

    • Adding extra features.

    • Extending the product range.

    • Changing the packaging.

  • By promotion:

    • Finding new markets.

    • Launching an advertising campaign.

    • Encouraging more frequent use.

Boston Matrix

  • Helps manage product portfolio, identify products needing attention, generate cash, or be discontinued.

  • Axis:

    • Relative market share: product/brand strength.

    • Market growth: market attractiveness based on increasing size.

Boston Consulting Group Matrix Categories

  • Star Products:

    • High market share in a fast-growing market, requiring high marketing spend to maintain growth.

  • Question Mark (Problem Child):

    • Low market share in a fast-growing market, negative cash flow, uncertain future, requiring investment to increase market share.

  • Cash Cow Products:

    • High market share in a slow-growing market, generating large positive cash inflow with little need for investment. Stable/steady demand, go-to product

  • Dog Products:

    • Low share in a slow-growth market, failing or declining products, not worth investing in; consider phasing out.

Actions for Each Product Category

  • Building:

    • For 'Question Mark' products, increase advertising.

  • Holding:

    • For 'Star' products, keep product fresh to maintain market position.

  • Milking:

    • For 'Cash Cow' products, use positive cash flows to improve other products.

  • Divesting:

    • For 'Dog' products, cease production.

Boston Matrix - Evaluative Points

  • Useful for analyzing product portfolio but doesn't provide strategic choices.

  • Highlights products needing strategic action.

  • Limited predictive value and is only a current snapshot.

  • Focuses on market share and growth, ignoring competitive advantages and profit.

Marketing Mix (4Ps)

  • Product, place, promotion, price influence customer purchase decisions.

  • Integrated to meet marketing objectives.

Elements of the Marketing Mix

  • Product:

    • How it's used, appearance, production cost, life cycle, USP.

  • Promotion:

    • Providing information to encourage purchase.

  • Price:

    • Depends on target market, competition, and costs.

  • Place:

    • Convenient for customers to obtain.

Marketing Strategies

  • Mass Market:

    • Many competing products, similar prices, heavy promotion, multiple distribution channels.

  • Niche Market:

    • Very different products, flexible pricing, targeted advertising, and specialized distribution.

  • B2B vs B2C:

    • B2B uses outbound (direct promotion) and inbound (attracting customers via content) strategies.

Developing Customer Loyalty

  • Preferential treatment, personalization, customer incentives, communication, and customer service.

Marketing Strategies Depend On

  • Nature of the product, available resources, market size, and business objectives.