Marketing Objectives and Strategy

• Marketing Objectives


  Goals that a business attempts to achieve through its marketing activities
• Product Life Cycle


  The different stages a product goes through over time and the sales that can be expected at each stage
• Development


  No sales, No revenue, The product is being researched and designed, High research and development costs
• Introduction


  Initial Sales are slow, Product price may be high to cover research and development costs, Heavy investment in advertising and marking
• Growth


  Sales begin to increase, Competitors are attracted, Price of the product may be lowered as average costs may reduce due to economies of scale and increased production
• Maturity


  Market share is stable, Competition is saturated, Product is established, extension strategies may be discussed
• Decline


  Sales decline, Product is either withdrawn or sold to another business
• Extension Strategies


  Methods used by a business to prolong the life of a product
• Extension Strategies


  • Promotion
  • Product adjustments: extending the range, making improvements, repackaging, adding value
• Product Lines


  Groups of products that are very similar
• Product Portfolio


  The collection of products a business is currently marketing
• Boston Matrix


  • Low market share and low market growth: dogs
  • Low market share and high market growth: question marks
  • High market share and low market growth: cash cows
  • High market share and high market growth: stars
• Marketing Strategies


  Set of plans that aim to achieve a specific marketing objective
• Marketing Strategies for Mass Markets

  • Product: highly differentiated with a Unique Selling Point
  • Price: Competitively priced
  • Place: multi channels
  • Promotion: Heavy investment for advertising and promotion
• Marketing Strategies for Niche Markets

  • Product: Unique Selling Point and designed to meet customer needs fully
  • Price: Flexible prices and premium prices
  • Place: Exclusive distributors
  • Promotion: Targeted and specialized publications