1. 135 Marketing Strategy AS Edexcel New Specification 2015 Business
By Mrs Hilton for

3. From the specification
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

4. Guidance from Edexcel

5. Guidance from Edexcel continued

6. Guidance from Edexcel continued

7. Lesson Objectives
To be able to explain and apply the product lifecycle theory
To be able to discuss product lifecycle extension strategies
To be able to explain and apply the Boston Matrix theory
To be able to discuss marketing strategies
To be able to explain consumer behaviour and consumer marketing
To be able to answer sample exam questions based on the topic area

8. Starter Why did Dairy Milk change their packaging?
Why did sure change their packaging? See here
Glass and a half was an old campaign and to ne honest how big was the glass? It never said. Also hinted that it was a healthy product. So new campaign meant a new package and an extension to their lifecycle strategy.

9. Definition of marketing from Edexcel
The management process of identifying, anticipating and satisfying consumer demands for profit

10. a) Product Life Cycle

11. Product life cycle Maturity Revenue £ Growth Decline Time Introduction
Development
© S Hilton for revisionstation
Time

12. Product life cycle explained
Different products have different lengths of product life cycle
The launch phase will involve high costs in research and development and the product may have been test marketed before launching e.g. iwatch
Growth phase products are enjoying rapid growth in sales and profits and could gain economies of scale at this point. Investment would be in promotion to ensure sales remain buoyant e.g. Salted caramel
Maturity phase products face intense competition now all the producers have joined the market. Most cars, boats and TVs are in this phase
Decline phase products may be limited in production or it may cease altogether e.g. typewriters

13. Product lifecycle quiz
Another online quiz here:
Link

14. B) Extension strategies

15. Product lifecycle extension strategies - product
Jaguar land rover regularly update their models
This picture shows two range rovers, one slightly newer than the other, the engine and chassis are the same the styling has changed to extend the brand
Land Rover have been making Range Rovers since 1970
This strategy ensures that the car remains in the maturity stage of the product life cycle rather than going into decline and being withdrawn
Much less risky than creating a new product
Builds on customer loyalty
Less expensive than developing a new product

16. Product lifecycle extension strategies - promotion
Re-packaging e.g. Lip tar (see picture)
Discounts e.g. DFS sale
Re-branding e.g. Marathon became snickers
Adding extra features e.g. iPhone 6+ has a bigger screen than the iPhone6
New users e.g. toddlers at Drayton Manor attracted by Thomas the tank land which has boosted flagging ticket sales
New markets e.g. overseas
More frequent use e.g. Shampoo often says wash your hair twice on the instructions

17. How is this an example of product lifecycle extension?

18. C) Boston Matrix

19. Move the graphics into the right boxes
Market share
High market share
Low market share
High
Market
Growth
Market
Growth
© S Hilton for revisionstation
Low
Market
Growth

20. Boston Matrix Explained
Star:
A product in this quarter will have high market share and high market growth
This product may be in the growth phase of the product life cycle
Production of this product should remain consistent while profits are harvested
Question mark:
Also known in some books as a problem child
A product in this quarter enjoys high market growth but low market share
This product may have just been launched on the market and is building its customer loyalty
Products should be invested in while their market share builds
Cash cow:
Products in this quarter are reaching the maturity of their product life cycle but still have customer loyalty
Products should be produced until sales start to decline
Dog:
Products in this quarter face declining sales in declining markets
Products may be in the decline phase of their product life cycle
For example video tapes or top hats
These products should be removed from sale
© S Hilton for revisionstation

21. 4 min video on Boston Matrix

22. D) Marketing strategy

23. Marketing strategy for a mass market
A mass market is one that caters for (almost) everyone, mass marketing is the process of selling products to all consumers regardless of age, gender, etc in the same way
These products can be marketed to consumers all over the world in the same way
Large quantities produced mean lower average costs means EOS means high profits
Media used will be TV, radio, newspapers, mass media
Examples include: Perfume, pop stars, coca cola, computers and Microsoft

24. Marketing strategy for a niche market
A market segment is consumers who can be grouped in different ways; income, gender, lifestyle, ethnicity, religion, age, interest
A Niche market is one that caters to a small subset of a segment and will target consumers in a very specific way
Products are designed for a specific purpose
Small turnover keeps larger firms from entering market
Inelastic demand means higher prices can be charged
Media used will be specialist magazines, trade fairs, websites, word of mouth, leaflets
Examples include; vegetarian shoes, gourmet scotch eggs, Harry Potter school bags. Article from BBC here, camel milk, optical illusion bags
Cambridge satchel company makes the Harry Potter bags

25. B2B marketing
B2B stands for Business to Business marketing. Many businesses just deal with other businesses rather than consumers. For example a school or college will have a paper supplier so they can keep giving you handouts and you can print your work out.
Advertising needs to be informative rather than persuasive or “clever”
This will typically involve larger transactions than with consumers (think paper again)
Suppliers need to build up closer relationships with customers
Transactions often on an order / invoice system
Focus will be on offering a quality product and a quality service

26. B2C marketing B2C means business to consumer
Consumers want to know the benefit of as product
They are not looking to build up long term relationships with the supplier, maybe a one off purchase like a sofa
Consumers want a variety of distribution channels for convenience, see a larger version of infographic here
Short message which clearly point out the benefits
Emotional connection with the product or supplier e.g. John Lewis watch the Bear and Hare advert here, Penguin advert here

27. E) Consumer behaviour

28. Customer loyalty
Product based on customer loyalty to football teams: Watch Dragons Den pitch here
Customer loyalty cards can be used to encourage repeat business and to gather data about buyer behviour

29. Sample question 1 8 mark question Case study on next slide
Levelled answer will require evaluation
Taken from Jun 10 2B paper as no samples available for this topic

32. Sample question 2
4 marks, 2 of which are for application (context) Linking product theory with dynamic market theory Case study on next slide

34. Answer question 2

35. Plenary Interactive product Life Cycle

36. Series of videos
Don’t just sit passive through the videos, make notes, pause them to review the information and ask if you have any questions…

37. Revision Video

38. Extra revision video

39. Glossary
Product life Cycle; the stages that a product moves through over time
BCG matrix; The Boston Consultancy Group or Boston Matrix for short, a marketing portfolio analysis tool
Extension strategy; a plan to extend the maturity stage of a product life cycle of a product, either through changes to the product or promotions to boost sales
B2B marketing; Business to business marketing
Mass Market; A market which caters to everyone, for example corn flakes or toothpaste
Niche market; A small market with very specialised customers, for example Harley Davidson motorbikes
Dynamic market; a market that is subject to rapid or continuous change