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Business Studies Marketing Strategy PowerPoint Presentation
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Business Studies Marketing Strategy

Business Studies Marketing Strategy

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Business Studies Marketing Strategy

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  1. Business Studies Marketing Strategy

  2. Content • Objectives and marketing • Niche marketing • Mass marketing • Product differentiation • Product life cycle • Product portfolio analysis • Ansoff matrix • Marketing decision making • Scientific decisions vs hunches

  3. Marketing Objectives • Marketing objectives are targets that the marketing department wants to achieve • These objectives help businesses achieve their overall objectives • Marketing objectives allow businesses to achieve their marketing strategies • Examples of objectives: • To increase market share by 5% • To increase distribution by 4%

  4. Niche Marketing • Niche marketing is where a business concentrates on a small segment of the market • This is often used by small companies as it is a way of avoiding competition who may not be interested in such a small segment • E.g. Gardening magazines, Science fiction books

  5. Strategy • A firms marketing strategy depends on a number of things: • Its resources • Their strengths and weaknesses • Competition • Skills and assets of the business • Market opportunities and threats • Marketing objectives

  6. Mass Marketing • Mass marketing strategies aim the strategy at the whole market • This is generally used by larger companies whose products appeal to everyone • E.g. Ariel washing powder, TV magazines, Bestsellers

  7. Product Differentiation • This is how businesses make their products stand out from the competition • They can use USPs – unique selling points to differentiate their products • By differentiating products you are able to charge a premium price • Differentiated products are often aimed at specific market segments as they have the features they desire

  8. Product Life Cycle • The Product Life Cycle shows the life of a product from its conception to its death • There are five stages in the product life cycle: • Research and development – the product is being developed, high costs • Introduction – the product is introduced to the market, sales are low, profit is negative as research and development costs are being met

  9. Product Life Cycle cont… 3. Growth – Sales increase rapidly, firm starts to make a profit 4. Maturity – Sales reach their peak, profits start to decline as competition increases 5. Decline – Sales fall, profits begin to fall, the product might be taken off the market

  10. Product life Cycle

  11. Extension Strategies • Firms often try and extend the life of their products to stop them going into decline • Extension strategies include: • Reduce price of product • Find alternative uses for product • Increase frequency of use of the product • Change packaging

  12. Product Portfolio Analysis • Classifies products according to two dimensions: • Market growth • Market share • Organisations aim to have a “balanced portfolio” ideally with cash cows where they can reap the profits and stars that will grow into cash cows

  13. PLC & Product portfolio Analysis • These tools can be used to analyse the portfolio of products a business offers • Businesses need to ensure that they have sufficient new products coming onto the market for the future • New products are funded by profits from products in the maturity phase of the PLC / cash cows

  14. Product Portfolio Analysis

  15. Ansoff Matrix • Four different strategies a business can implement • Market penetration – sell more products to existing customers • New product development – sell new products to existing customers • Market development – sell existing products to new customers • Differentiation – sell new products to new customers

  16. Ansoff Matrix

  17. Marketing Decision Making • Methods are based on the situation, time available and the managers expertise • Managers make marketing decisions based on: • Data • Hunches • Scientific Method • Experience

  18. Scientific Method • Marketing objectives are set • Data is gathered • Data is analysed • Marketing strategy is developed • Marketing strategy is implemented • Results are reviewed – this leads back into objectives

  19. Summary • Marketing objectives are targets to achieve • Niche marketing – small segment of the market • Mass marketing- whole market • Product differentiation – use of USPs to make products stand out • PLC – classifies products due to their stage in the PLC • Portfolio analysis – classifies products due to market size and growth • ANSOFF matrix – gives a selection of strategies using new / existing products and markets • Marketing decision making – can be made using scientific method or experience