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Marketing - Coggle Diagram
Marketing
Product Life Cycle
Growth
Sales grew rapidly with the use of persuasive advertising. Profits are now being made as development costs have been recovered. Products with low price keep it low could gain the market share.
Maturity
Product sales growth is slow and competition is fierce. More competitors join to the market with lower prices. Use discounting and sales to make the market share become higher.
Introduction
The product began to join the market and sales began to increase. Use informational advertising to inform consumers about products.
Decline
Sales of the product have begun to decline, and the product may eventually be withdrawn from the market or discount to encourage final sales
Development
Companies are investing in research and development, cost a lot of money and time, and no formal sales start, no revenue.
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Pricing Method
Competitive pricing
Setting price similar to the competitors. Sometimes a little bit above or under but always the same. The customers have to judge by use the “non-pricing” methods: quality of services, speed, extras.
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Loss-leader
Setting a price really low or even loss-making which might cause a negative profit to the business. The business could use this way to attract customers to buy their other products that could leads to more profits. Always use at the decline time.
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Penetration
A new product or service set a very low price in order to attract the costumers try to buy this at first time. It could use at introduction time. This could leads to the business get more market share. (Usually mass market products) It also mattered to the growth time.
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Skimming
The price of the new product at the introduction time is set very high in the market. Because there's very advanced technology or new technology or unique technology and a lot of demands. Before the substitutes appear, it could give the company a huge profit. And the business set this high price also in order to recoup the large costs of research and development.
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