MISS C HL (WK 8 L 1) 25 MRKR

plan

- whether to invest long term -pricing strategy -need for diversity in portfolio - trend quick up and down

plan point 2

DIFFICULT TO TRACK OTHER MORE IMPORTANT TINGS In evaluation however, the extent of this usefulness depends on the market they operate in. If their products are in different paced markets then it will be more different to track where each products life cycle is at. This is backed up by how external factors outside of the company's control, in dynamic markets, will affect the managers marketing decisions.

plan point

KEEP PORTFOLIO SAFE PRICING STRATEGIES The product life cycle will be useful for managers of a multi product business to help make effective marketing decisions as it allows them to balance their product portfolio and ensure they have products at different stages of the cycle. Consequently, it will help them realise products in decline and thus the need for investment in to new products. links in to the use of the marketing mix as for example penetration pricing will be needed for new products in the introduction stage

Conclusion

Overall, having an understanding of the marketing mix in a marketing context will help the managers make effective marketing decisions regarding targeting, positioning and the marketing mix in relation to the marketing objective. However, it's usefulness will depend on the accuracy of sales forecasting. To what extent this understanding will be effective depends on the type of market the multi-product business operates in; useful in a traditional stable market, however not so useful in a dynamic market. This is due to external factors limiting the usefulness of the product life cycle, where sudden changes will limit its reliability. Therefore, more effective marketing decisions may be made if the managers used their understanding of the product life cycle in conjunction with the Boston Matrix. This is due to the business being multi product and so managers need an overview of how different products are performing.

apple

Really interesting regulation story here emanating from France, where the authorities have fined Apple for not providing consumers with information that they 'slowed down' old iPhones. (DECLINE) Apple claim that this is to protect the phone's components, but critics suspect that it is done to encourage people to upgrade their phones... (to extend their PLC) I wonder whether other EU member states will follow suit, and it's also an example of how asymmetric information reduces market efficiency. The cynic might do a quick back of the envelope calculation to express the size of this fine against their annual profits or market capitalisation!

25 Mark Question

The managers of a multi-product business want to achieve a steady growth in sales. To what extent will an understanding of product life cycle help them make effective marketing decisions? (25 Marks)

Product Life Cycle

introduction, growth, maturity, decline

overall

it will affect decisions regarding targeting, positioning and the marketing mix in relation to the marketing objective its usefulness will depend on the accuracy of sales forecasting in more dynamic markets it is likely to be less useful; in more traditional markets it can prove to be a very useful planning tool external changes can dramatically limit its reliability and usefulness it may be useful in conjunction with other analytical tools such as the Boston matrix and market research; in a multi-product business the managers may want an overview of how different products are performing. In general the product life cycle may be more suited to stable markets, with low rates of change. This indicative content is not exhaustive; other creditworthy material should be awarded marks as appropriate.

planning a 25

should take 30 mins https://www.youtube.com/watch?v=oXfIb9o3_7Y context and evaluation hooks to question 1)point explained 2)context/evidence (you can use ur own example like Ubers rapid growth via tech) 3)models/theory/reasoning 4)point included evaluation yada yada yada buuuut risk (overall para still positive next negative)

Plan point 3

understanding of the marketing mix will not help the managers make effective marketing decisions as this type of company (multi-product) will release many products which are then withdrawn due to unsuccessful launches given the competitiveness of the market. Thus, these products won't go through all four stages of the cycle. Some products that do make it past the introduction stage may be in decline and so a setback for the business in the maturity stage of their cycle. In evaluation however, a business's understanding of the product life cycle may prompt them to launch extension strategies for this type of product which could disrupt markets, for example through product modification.

conclusion

use words In question acknowledge risk overall

Examples of how the assessment objectives might be met in this question include:

• demonstrate knowledge and understanding of relevant issues such as product life cycle and marketing decisions (AO1) • be applied to the context of a multi-product business wanting to achieve a steady growth in sales (AO2) • analyse the possible impact of the product life cycle model on managers making marketing decisions (AO3) • evaluate qualitative information to make an informed judgement on the extent to which an understanding of the product life cycle will help managers make effective marketing decisions. For example it may consider the need to use portfolio analysis to take an overview of all the products (AO4)