1. 1.3 Marketing mix and strategy 1.3.5 Marketing strategy
Theme 1:
Marketing and people
Can products be designed to make you happier?
Products designed to make you happier...
1.3 Marketing mix and strategy Marketing strategy
Edexcel Business

2. Theme 1: Marketing & People
This theme enables students to understand how businesses identify opportunities and to explore how businesses focus on developing a competitive advantage through interacting with customers. Students develop an understanding of how businesses need to adapt their marketing to operate in a dynamic business environment. This theme also considers people, exploring how businesses recruit, train, organise and motivate employees, as well as the role of enterprising individuals and leaders.
1.3 Marketing mix and strategy
Subject content
1.3.5 Marketing strategy
What students need to learn:
a) The product life cycle
b) Extension strategies:
product
promotion
c) Boston Matrix and the product portfolio
d) Marketing strategies appropriate for different types of
market:
mass markets
niche markets
business to business (B2B) and business to
consumer (B2C) marketing
e) Consumer behaviour – how businesses develop
customer loyalty

3. Product Portfolio Analysis
Allows you to make decisions with regards your company’s product mix
‘Analysing the existing product mix to help develop a balanced range of goods and services’

4. What is a product portfolio?
What are the advantages to a firm of having a broad product portfolio?
Are there any disadvantages?
The range of products/services that a business offers

5. The Boston Matrix
A method of analysing the products in a firm’s portfolio based on relative market share and market growth
Recap.
Define market share.
Define market growth.

6. Boston Matrix

7. STARS Large market share of a high growth market
Market leading products
Fast growing
Substantial profits
e.g. the Playstation was a star when it was first introduced into the games market.

8. PROBLEM CHILDREN/ QUESTION MARK
Might have future potential as they are in growth markets
Need a lot of financing
e.g. An example of a Question Mark could be a newly launched fashion item or a new car model.

9. e.g. cornflakes in the breakfast cereals market.
CASH COWS
Products that generate funds possibly to support other products
Stable market share
e.g. cornflakes in the breakfast cereals market.

10. DOGS Products that are in decline Cost disadvantage
Markets are not growing
A business wants to avoid any of its products being Dogs, although this may happen as technology, innovation and trends change.
e.g. For example, DVD recorders have replaced video recorders which became Dogs for the electrical firms making them.

11. Draw a Boston matrix for Apple
IPod
IPad
IPod shuffle
IPhone 6
IPhone 2
Apple mac
Apple watch

12. Boston Matrix Rising star Develops Problem child £ cross subsidises
Becomes established
Reinvents
Cash cow
Dog
Exits

13. Can you explain any links between these two models?
Product analysis
Can you explain any links between these two models?

14. Discussion
To what extent will simplifying its product range help Tesco to slow the decline in its sales?
Tesco: Every little is helping

15. Cadbury has a wide range of chocolate brands including Dairy Milk, Flake, Crunchie, Twirl and Fudge. It wishes to push its UK market share from 34 per cent to 38 per cent within the next two years. Evaluate the extent to which the Boston Matrixmight help in achieving this goal.
Possible responses may include:
l Analysing each product in their portfolio can help
management to really think through the investment they
should put into products to help fulfil their potential.
l Cash cows might be left to rake in the cash.
l Problem children should perhaps have more money invested
in them as these have the potential to be the stars of the
future.
l Dogs might be discontinued if they are not making a
contribution.
Evaluation:
l For a large business like Cadbury with a wide range of
chocolate brands, the Boston Matrix might be useful in
making strategic marketing decisions. However, while it
may help to make marginal decisions, it is unlikely to be
revolutionary. The goal is to increase UK market share
from 34 to 38 per cent and the Boston Matrix should help
Cadbury to achieve this goal – although is unlikely to be
enough in itself.