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BTEC Business Unit 2: Rationale Key Terms 2024/2025 already graded A+
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BTEC Business Unit 2: Rationale Key Terms 2024/2025 already graded A+

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  • 3 de enero de 2024
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  • btec nationals business student book 1 activebook
  • marketing rationale ansthe reasons that cause a
  • growth stage ansthe second stage when the amount
  • extension strategies ansthese are strategies de

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BTEC Business Unit 2: Rationale Key
Terms

Marketing Rationale - ANSThe reasons that cause a particular set of marketing actions

Marketing - ANSThe business activity that involves finding out what customers want, using that
information to design products and services, and selling them effectively.

Product life cycle - ANSThe stages of a product sales over time i.e. research and development,
introduction, growth, maturity and decline.

Introduction Stage - ANSThe first stage when a product is launched and sales are rising but not
sufficient to cover the associated costs.

Growth Stage - ANSThe second stage when the amount of sales is rising more quickly and the
marketing has led to faster sales levels. Revenues are higher at this stage and marketing costs
may be lower.

Maturity Stage - ANSThe rate of sales growth is flattening out and peaks at saturation levels i.e.
when the market needs have been met.

Decline Stage - ANSThe level of sales is falling and demand is dropping as the product has
peaked and consumers look for new and improved versions of the product.

Extension strategies - ANSThese are strategies designed to extend the life of the product by
enhancements, new versions, packaging or rebranding/repositioning.

Impact of stage on PRICE - ANSPricing strategies will need to adapt to changing demand
levels. For example during decline the price may need to fall.

Impact of stage on PROMOTION - ANSSpending on Promotion is highest in the launch and
product introduction phase.

Impact of stage on PRODUCT - ANSEnhancements and new versions will be more likely at the
decline/ end of life stage of the life cycle.

Market - ANSThe customer/consumer groups that the product/service is aimed at.

Marketing campaign - ANSMarketing plan including a series of strategies and events including a
plan for resources and a budget.

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