Marketing with mon
All products go through the product life cycle which describes the 4 stages all new products go through in the market: introduction, growth, maturity, and decline. (I apologize in advance for the lack of photos, there's some sort of glitch with the website I use and it's not working.)
Introduction: The product is introduced to it's target market, sales are typically slow and profit is minimal. The point of this stage is to begin marketing the product and spreading the word and create an awareness strong enough to entice the consumer to buy the product. Companies take the risk and will spend most of their money on advertisement and promotional tools. An example of a product currently in the introduction stage is Apple's iWatch. At this point, consumers know the product, a watch that connects with our phones and has apps similar to those found on other apple products. All money right now is being directed towards advertising the watch and building a customer base, most likely consumers loyal to Apple. The product won't be sold until April 24th, so as you can imagine, sales are at zero. Growth: This is when a product shows a rapid increase in sales and competitors begin to show. We find out who are the Big dogs in the market and who might be able to offer a similar product at a lower price. Often for companies to differentiate themselves with their competitors they'll offer a new and improved version. They might also broaden and/or change their distribution channels. The introduction stage can be seen as a "trial" stage and companies make changes based on their results and profits from the intro stage. An example of a product that's growing is alternative energy. More and more people are becoming aware of how much energy they use and seeking ways to reduce it to minimize their carbon footprint. Solar panels are going up everywhere, windmills are being constructed across the nation, more and more electric car charging stations are available. Maturity: When a product is in the maturity stage, industry sales slow and smaller competitors leave the market, which makes the competition between the bigger competitors more fierce. Profits decline but the cost of trying to gain new buyers is rising. An example of a product that's mature are smartphones. For the most part, people that are going to want to buy them already have them. Apple, Samsung, LG and Blackberry are the four competitors and easily dominate the industry. These companies also rely on the sales of other products, like computers and tablets. Decline: In this stage, products are pretty much beginning to be forgotten. Sales drop drastically and there is no longer a need for them. Usually products decline due to environmental and technological changes. Sometimes the products are completely deleted from the market. As examples, we've been looking at technological examples so to continue, an example of a product that's declined: CD portable music players. This product is nearly impossible to find on the internet unless somebody is selling their old one. Companies have stopped production in light of iPods and other other MP3 players that have proven to be more practical.
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10/16/2016 12:26:09 am
Why do I still need SEO service maintenance for my website, when I'm already searchable and have a rank?" The answer is very simple - to uphold your current rank/position and to be always on the top.
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Monica AndreaniJunior at Saint Michael's College, MJD major, Business minor. Here to teach you the basics of Marketing. Archives
April 2015
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