1. Marketing Strategies:
11 & 12
Chapter
Marketing Strategies:
Course: BUS 101
Lecturer: Aunima Nazmun Nahar (NNA)

2. Product Life Cycle PLC)

4. 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 lower-fat ice cream called Slow Churned
Ch 9 -4
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5. 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
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6. 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
Note to Instructor
Cars are very mature products so companies are always coming up with new models and features. This is a link to a very funny YouTube ad about a new car product.
Cell phone network companies in Bangladesh are continuously promoting their product to capture competitors’ customers
Ch 9 -6
Copyright © 2011 Pearson Education

7. Product Life-Cycle Strategies
5. Decline Stage
Competitors gradually exit
Decline stage is caused by
Product innovation
shift in consumer preferences
Technological change
Due to technological change, vcr and floppy became extinct and cd ‘s product life cycle became in the declined position
Ch 9 -7
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8. Expanding Marketing’s Traditional Boundaries: Nontraditional Marketing

9. Nontraditional Marketing
Person Marketing Efforts designed to attract the attention, interest, and preference of a target market toward a person are called person marketing

10. 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,

11. Nontraditional Marketing
Event Marketing: Marketing or sponsoring short-term events such as athletic competitions and cultural and charitable performances is known as event marketing.

12. 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

13. 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

14. 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.

15. Market Segmentation
Market segmentation is the process of dividing a market into several relatively homogeneous groups.

16. Segmenting Consumer Markets
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation

17. 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

18. 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

19. 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

20. 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