What are the three key marketing objectives?
- Increase market share
- Increase revenue
- Build a brand
These objectives guide businesses in their marketing strategies.
Why are marketing objectives important?
- Provide direction for the marketing department
- Monitor progress against targets
- Allow for management by objective
- Form the basis of marketing strategy
They help businesses stay focused and measure success.
List the stages of the product life cycle.
- Development
- Introduction
- Growth
- Maturity and saturation
- Decline
Each stage has different sales expectations and strategies.
During the development stage, what is the primary focus?
Designing the product
Costs are high, and there are no sales at this stage.
What occurs during the introduction stage of a product?
- Sales are slow
- Costs incurred for launch
- Promotion to raise awareness
The length of this stage varies by product.
In the growth stage, what happens to sales?
Sales begin to grow rapidly
Unit costs may fall as production increases.
What characterizes the maturity and saturation stage?
- Sales level off
- Peak sales
- Market becomes saturated
Competitors enter the market, and extension strategies may be used.
What leads to the decline stage of a product?
- Changing consumer tastes
- New technology
- Introduction of new products
Most products experience a decline eventually.
What are extension strategies?
- Product adjustments
- Finding new markets
- Developing a wider product range
- Targeting specific markets
- Changing appearance or packaging
- Encouraging more frequent use
These strategies aim to prolong a product’s life cycle.
What does the Boston Matrix analyze?
Product portfolio based on market growth and relative market share
It classifies products into four categories: Stars, Cash Cows, Problem Children, and Dogs.
Define Stars in the Boston Matrix.
- High market growth
- High market share
Stars require significant investment to maintain growth.
What are Cash Cows in the Boston Matrix?
- Low market growth
- High market share
They generate significant cash and require minimal investment.
What characterizes Dogs in the Boston Matrix?
- Low market growth
- Low market share
Investment should be minimized, and they may need to be phased out.
What is the Marketing Mix commonly known as?
The 4Ps: product, price, place, promotion
It refers to the elements used to meet consumer needs.
What is a Unique Selling Point (USP)?
Feature that distinguishes a product from rivals
Developing a USP can provide a competitive edge.
In mass markets, what is a common pricing strategy?
Going rate pricing
This strategy helps avoid price wars among competitors.
What is a key characteristic of niche markets?
Products have significant differences from rivals
Businesses can charge higher prices due to less competition.
What distinguishes outbound marketing?
Directing marketing material at potential customers unexpectedly
Examples include direct mail and targeted adverts.
What is inbound marketing?
Attracting potential customers to websites seeking solutions
This strategy focuses on drawing customers in rather than pushing messages out.
What are the two main types of marketing strategies in B2B?
- Outbound marketing strategies
- Inbound marketing strategies
These strategies help businesses reach potential customers effectively.
Define outbound marketing strategies.
Directing marketing material at potential customers whether they are expecting it or not
Examples include direct mail, email, telephone marketing, sponsorship, targeted adverts, and trade shows.
Define inbound marketing strategies.
Attracting potential customers to websites when they are looking for suppliers or solutions to problems
This approach focuses on drawing customers in rather than pushing marketing material out.
List common inbound marketing techniques.
- Blogging
- Social media marketing
- Search engine optimization
- Free e-books
- Video marketing
- Targeted email marketing
These techniques aim to engage potential customers and drive traffic to websites.
What is a hybrid strategy in marketing?
A combination of both outbound and inbound methods
This approach utilizes the strengths of both strategies to reach customers.
