Product Life Cycle (PLC)
A new product passes through set of stages known as product life cycle. Product life cycle applies to both brand and category of products. Its time period vary from product to product. Modern product life cycles are becoming shorter and shorter as products in mature stages are being renewed by market segmentation and product differentiation.
Companies always attempt to maximize the profit and revenues over the entire life cycle of a product. In order to achieving the desired level of profit, the introduction of the new product at the proper time is crucial. If new product is appealing to consumer and no stiff competition is out there, company can charge high prices and earn high profits.
Marketers use different tools in order to get the desired response from the customers or best satisfy their needs. These tools are known as The Marketing Mix. Marketing Mix is probably the most famous term in marketing.
Marketing Mix is a combination of marketing tools that a company uses to satisfy their target customers and achieving organizational goals. McCarthy classified all these marketing tools under four broad categories:
These four elements are the basic components of a marketing plan and are collectively called 4 P’s of marketing. 4 P’s pertain more to physical products than services. Below is an illustration for marketing mix. Continue reading
Market segmentation can be defined as the process of dividing a market into different homogeneous groups of consumers.
Market consists of buyers and buyers vary from each other in different ways. Variation depends upon different factors like wants, resources, buying attitude, locations, and buying practices. By segmentation, large heterogeneous markets are divided into smaller segments that can be managed more efficiently and effectively with products and services that match to their unique needs. So, market segmentation is beneficial for the companies serving larger markets.
Criteria for selecting Market Segments
A segment should be measurable. It means you should be able to tell how many potential customers and how many businesses are out there in the segment.
A segment should be accessible through channels of communication and distribution like: sales force, transportation, distributors, telecom, or internet. Continue reading
What is Marketing? (Marketing Definition)
There are a lot of marketing definitions available but the right ones are focused upon the key to marketing success i.e. customers. Following are some of the marketing definitions available.
American Marketing Association defines marketing as:
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. (Approved October 2007)
The Chartered Institute of Marketing (CIM) says: