Académique Documents
Professionnel Documents
Culture Documents
Customer
Gatekeeper
Consumer demand Is
Glut
2.2
Product Life
Cycles
Profitability
Stages of PLC
Target Market
Pricing Strategy
1. Introduction
Innovators
Skim-High
Stars
2. Growth stage
Early adopters
Penetrate-med high
Cash Cows
3. Maturity Stage
Early Majority
Penetrate-med
Cash Cows
4. Decline Stage
Late Majority
Lower
Dogs
Laggards
liquidate
Identify at least 1 product for each of the 5 stages of the PLC: Examples:
Think of one
example for
each stage
1.
2.
3.
4.
5.
Iggy Azalea
bruno marz
smartphones
digital cameras
traditional film cameras
1.
2.
3.
4.
5.
Meghan Trainor
Ariana Grande
Wireless electronics
flip phones (still being used by many adults)
MP3 players
Consignment Allows retailer to return unsold product to the manufacturer after displaying them
for a period of time.
Shelf
Allowance
Bust
Most
Important
Stage
Growth stage
Benefit of
being first
No competition initially
Market Share A companies sales as a percentage of total sales for that market
Barriers to
entry
Examples
1. small market
2. cost of research and development/know how
3. design costs
Companies
Are often very successful during the middle portion of the growth stage using low
that use a push prices
strategy
Maturity Stage Period during which sales of a product increase more slowly, if at all.
Profits
Develop new products
obtained
during this
stage are often
used to
Decline Stage When a company is unable to find new customers for a new product
Target Market
Innovators
Early Adopters
Majority
Late Majority
Laggards
Decline
Decision Point
Cash Cow
Dog
Lower
Liquidate
Growth
Maturity
Profitability
Question Mark/
Dog
Question Mark
Star
Pricing Strategy
Skim
Penetrate
Penetrate
Cohorts
Consumer Segment
Target Market
Primary Market
Secondary Market
Demographics
Includes:
Age
Gender
Family life cycle
Income level
Ethnicity
Culture
demographics
Pre Customers
Allowance Customers
Youth Market
Family Formation
Establishment
Mature Market
Baby Boomers
Women
It will tailor its marketing efforts to match the needs of each one.
Income level
Postal codes
Employment
Number of children
Education
Property Ownership
When marketing in
another country
Psychographics
Examples
Religious beliefs
Tastes in music
Lifestyle
Attitudes toward health
Personality traits
Attitude towards the Environment
Than demographics and much more difficult to measure, but they are
equally important to businesses
Geographics:
Consumers
3 main geographic
categories
Urban
Suburban
Rural
Urban consumer
Suburban Consumer
Rural consumers are often Farmers or people who have large pieces of land
Pareto Principle
1.
2.
3.
4.
Heavy User
medium user
light user
non-user
Few rules are more widely quoted in marketing today than the 80/20
Rule (the Pareto's Principle), which states that 80% of your sales come
from just 20% of your customer base.
In this age of relationship marketing, this rule has become an oftenheard battle cry to focus our efforts on maintaining the loyalty of
customers belonging to the golden 20% that drive most of our business,
while spending less effort on the trivial other 80%.
non users
Dominant because they have their roots in the basic need for
survival.
Emotional needs:
The value equation places: pleasure on the plus side and the
pain involved in earning the money to afford it on the negative.
Peer Pressure
Celebrity Endorsement
1.
2.
3.
4.
5.
Physiological
Safety
Affiliation: Friends, relationships
Esteem: success
Self Actualization
Destination Locations
Shopping Good
Stores that consumers will visit and will travel to get to.
Usually for large ticket items or specialty items.
1.
2.
3.
4.
5.
6.
Want is created
Criteria is set-Features needed
Search begins
Decision is made
Purchase is made
Purchase is evaluated
If the consumer has not decided on The store display, selection, price, and packaging will influence
the brand
the decision
Impulse items
Push strategy
Impulse
Pull Strategy
Shopping
Combo Strategy
Big Ticket/Specialty