Marketing Strategies:

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Chapter
11 & 12
Marketing Strategies:
Course: BUS 101
Lecturer: Aunima Nazmun
Nahar (NNA)
Product Life Cycle PLC)
Product Life-Cycle Strategies
2. Introduction Stage
• Slow sales growth
• Little or no profit
• High distribution and
promotion expense
Dreyer’s, the largest ice cream maker in the
United States, promoted an essay contest
as a first step to giving away 1,500 free ice
cream parties to get people to try its lowerfat ice cream called Slow Churned
Ch 9 -4
Copyright © 2011 Pearson Education
Product Life-Cycle Strategies
3. Growth Stage
• Sales increase
• New customers
• New competitors enter the
market with similar offerings
• Price stability or decline to
increase sales
• Profits increase
Ch 9 -5
Copyright © 2011 Pearson Education
Product Life-Cycle Strategies
4. Maturity Stage
• Sales slows down
• Increase product
availability
• Weaker competitors
leave the market
• Price reduces
• Firms concentrate on
capturing competitors’
customers
• Aggressive promotion
Ch 9 -6
Copyright © 2011 Pearson Education
Cell phone network companies in Bangladesh
are continuously promoting their product to
capture competitors’ customers
Product Life-Cycle Strategies
5. Decline Stage
• Competitors gradually
exit
• Decline stage is caused
by
• Product innovation
• shift in consumer
preferences
• Technological change
Ch 9 -7
Copyright © 2011 Pearson Education
Due to technological change,
vcr and floppy became extinct
and cd ‘s product life cycle
became in the declined position
Expanding Marketing’s Traditional
Boundaries: Nontraditional Marketing
Nontraditional Marketing
• Person Marketing
Efforts designed to
attract the attention,
interest, and
preference of a target
market toward a
person are called
person marketing
Nontraditional Marketing
• Place Marketing:
Marketing campaigns to
attract people to a
particular area, such as
a city, state, or nation.
E.g. incredible india
campaign to promote
India,
Nontraditional Marketing
• Event Marketing:
Marketing or
sponsoring short-term
events such as athletic
competitions and
cultural and charitable
performances is known
as event marketing.
Nontraditional Marketing
• Cause Marketing:
Marketing that promotes a
cause or social issue, such
as preventing child abuse,
antilittering efforts, and
antismoking campaigns, is
cause marketing. E.g. anti
smoking, anti drugs
campaign, clean india
campaign
Nontraditional Marketing
• Organization
Marketing: Marketing
campaign which
influences consumers
to accept the goals of,
receive the services of,
or contribute in some
way to an organization.
E.g. Army, Navy,
Airforce, Red-cross
Target Market
• An organization’s target market is
the group of potential customers
toward whom it directs its
marketing efforts. Customer needs
and wants vary considerably, and
no single organization has the
resources to satisfy everyone.
– i.e. Forbes is geared toward
businesspeople and consumers who
are interested in business, while
Vogue is aimed at people who are
interested in fashion.
Market Segmentation
• Market segmentation is the process of
dividing a market into several relatively
homogeneous groups.
Segmenting Consumer Markets
Geographic
segmentation
Psychographic
segmentation
Demographic
segmentation
Behavioral
segmentation
Segmenting Consumer Markets
• Geographic segmentation divides the market
into different geographical units such as
nations, regions, provinces, parishes, cities, or
even neighborhoods.
– Agricultural products in village
– Toyota: Left side vs right side steering wheel
– Selling cereal, oats and corn-flakes in dhaka vs
rural areas
Segmenting Consumer Markets
• Demographic segmentation divides the market
into groups based on variables such as age,
gender, family size, family life cycle, income,
occupation, education, religion, race, generation,
and nationality.
– Age: Gap children clothing line and Ponds or Olay
anti-aging cream
– Income: Fit Elegance vs Artisan
– Religion: Hizab sellers and Shakha sellers
– Family size: Maggy single noodle vs Family pack
Segmenting Consumer Markets
• Psychographic segmentation
divides buyers into different
groups based on social class,
lifestyle, or personality
characteristics.
– Social Class: Tata Nano vs Audi
R8
– Lifestyle: Mountain dew, Diet
Pepsi and Pepsi
– Personality: Nokia Asha vs
Nokia Lumia
Segmenting Consumer Markets
• Behavioral segmentation divides buyers
into groups based on their knowledge,
usage, or responses to a product.
– Buying in occasion: Hallmark card, Birthday
cake
– Benefit sought: Close-up for Freshness; Colgate
for cavity; Sensodyne for sensitive teeth
– Loyalty: Grameen phone star subscribers
– Usage rate: High rollers in casino are regarded
as VIPs and treated exclusively; Cigarette and
Alcohol: heavy vs light users
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