Marketing Strategies for Different Markets: Product Lifecycle, Boston Matrix, Niche Markets, B2B Marketing

1. 135 Marketing StrategyAS 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 Edexcelcontinued

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

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 Growth Revenue £ Decline Introduction Development 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 Low market share High market share High Market Growth Market Growth Low Market Growth

20. Boston Matrix Explained

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

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

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