PRODUCT LIFE CYCLE
- begins when the company finds and develops a new product idea.
- a period of sales growth as the product is introduced in the market.
- Profits are nonexistent because of the heavy expenses of product introduction
- a period of rapid market acceptance and increasing profits
- Period of slowing down in sales growth as the product has achieved acceptance by most potential buyers.
- Profits level off or decline because of increased marketing outlays (expenditure) to defend the product against competition.
- period when sales fail off and profits drop.
- Is the practice of tailoring products and marketing programs to suit the tastes of specific individuals and locations #
- Involves tailoring brands and promotions to the needs and wants of local customer groups – cities, neighborhoods, and even specific stores
- Tailoring products and marketing programs to the needs and preferences of individual customers
- Identify bases for
segmenting the market
- Develop segment
Dividing markets into
- behaviors who might require separate product and marketing mix
- Develop measure of
- Select target
- Develop positioning
for target segment
- Setting the competitive positioning for the product
- Develop a marketing
mix for each segment
- creating a detailed marketing mix
- Mass producing
- Mass distributing and
- Mass promoting
- Market segments are normally large, identifiable groups within a market.