1. 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 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

2. Guidance from Edexcel

3. 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

4. Starter Why did Dairy Milk change their packaging? Why did sure change their packaging? See here here

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

6. A) PRODUCT LIFE CYCLE

7. Product life cycle Introduction Growth Maturity Decline Time Revenue £ Development

8. 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

9. B) EXTENSION STRATEGIES

10. 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

11. 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 Drayton Manor New markets e.g. overseas More frequent use e.g. Shampoo often says wash your hair twice on the instructions

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

13. C) BOSTON MATRIX

14. Video on Boston Matrix

15. Market share High market share Low market share Market Growth High Market Growth Low Market Growth Move the graphics into the right boxes

16. 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

17. D) MARKETING STRATEGY

18. 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

19. 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 bagsvegetarian shoesgourmet scotch eggs herecamel milkoptical illusion bags

20. 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

21. 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 herehere 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 herehere

22. E) CONSUMER BEHAVIOUR

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

24. Sample question 1 8 mark question Case study on next slide Levelled answer will require evaluation 8 mark question Case study on next slide Levelled answer will require evaluation

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

29. Answer question 2

30. Plenary Interactive product Life Cycle

31. 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…

32. Revision Video

33. Extra revision video

34. 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