Marketing stratergy

• •Marketing:  The management process of identifying, anticipating and satisfying consumer demands for profit
• •Marketing strategy:  The methods used by a business to achieve their marketing objectives
• product life cycle shows the sales of products over time it valuable for planning marketing strategies and has implications for cash flow
• product life cycle stages- development, introduction, growth, maturity and decline
• development- research and development department do this stage- the first stage of the product lifecycle where a product is designed and market research is analysed to produce a product which will satisfy customer needs •Cash flow at this point is tight, this is a very expensive phase and at this point the product is not making any revenue and therefore no profit
• introduction phase-

  •high costs in research and development and the product may have been test marketed before launching, so profits may be negative

  •Sales will be low as customers may not yet be aware of the products

  •Advertising will be informative to let customers know that the product has been launched
• •Growth phase products are enjoying rapid growth in sales and profits

  •At this stage the customers are aware of the product and demand is high

  •A business may advertise the product to take advantage of the high demand
• •Maturity phase products face intense competition now all the producers have joined the market

  •Market is starting to be saturated – everyone has bought the product who is likely to buy

  •Sales are high but profits are starting to fall

  •Products have to be discounted to keep sales high – so prices may be lowered or the product may be put on sale
• •Decline phase products may be limited in production•At this stage profits and sales have fallen and the product may be withdrawn from sale•The business may decide to heavily discount to get any last sales before the product becomes obsolete