Product Life Cycle
Every product has a life cycle. The sales of the typical product follows an S-shaped curve made up of five stages. The cycle begins with the product development stage, when the company finds and develops a new product idea. Slow growth and low profits mark the introduction stage as the product is distributed to the market. In this stage, the company chooses a launch strategy consistent with its intended product positioning. If successful, the product enters a growth stage, which offers rapid sales growth and increasing profits. Here, companies work to stay ahead of the competition and sustain rapid market growth by improving product quality, adding new product features and models, entering new market segments and distribution channels, and lowering prices at the right time to attract new customers. To follow, in the maturity stage, sales growth slows down and profits hit a plateau. Companies continue to invest in maturing products by modifying the market, product, or the marketing mix. Finally, the product enters a decline stage in which sales and profits shrink. It's at this stage that the company must decide what to do with the product. They need to ask whether the product should be maintained without change, harvested to reduce costs and try to maintain sales, or dropped completely. When deciding on their marketing strategy it is important that they correctly define their consumer to ensure the best marketing strategy possible.. A consumer is defined using several criteria, for example the age of the consumer, the era the consumer is from and what happened during that era as well as how that era shaped their beliefs and values (i.e. the six American cohorts from the following eras, the depression, WWII, post-war, the baby boom, and Generation X). Depending on the external events that occur while people are coming of age, they may develop different buying habits which marketers should take into consideration when developing their strategies.
We believe that considering generational factors is a key element in developing effective marketing strategies. People from different generations, are interested in buying different products. For example, people from our own generation find it important to keep up with the latest technologies. However, a person who grew up during the Great Depression, who lived most of their life without these technologies, will not view technology as a necessity. With this information, those that market technology will know that the younger generation will be their target market group.
Our old friends Cheerios have realized that they can have both generational marketing and segmentation marketing; of sorts. They can target market a specific generation which in my example would be children learning to eat on their own as we have almost all learned to eat with Cheerios little O’s. This is a form of segmentation marketing where Cheerios has selected toddlers as their target and then more specifically positioned their product to be attractive to the purchaser for the consumer (Solomon, Marshall & Stuart, 2012). While in time past, such generational marketing was the norm, it may not be such a great idea as consumers are more discerning and the ability of website advertising analytics can deliver a much better idea of exactly
In addition, successful organizational changes are more effective when they engage all generations. While the Generation Z employees may be more comfortable using technology, Baby Boomers can use knowledge gained through years of experience to persuade those around them. Ultimately, all generations can learn from and teach one another valuable lessons while simultaneously expanding their own horizons. The companies that learn to employ this lesson the best will be the ones that benefit from it the most.
Sharon Hurley Hall begins her article, “The Increasing Power of Peer Influence: Millennials and Your Business” by explaining the meaning of Millennial—people born after 1980. These individuals are now the prime target of advertising, especially because these are the people who are more connected to the internet. According to eMarketer’s research, “Almost 70% of Millennials are influenced by friends’ posts on social media when deciding whether to purchase products and services” (Hall). In addition to companies using peer-to-peer marketing now commonly known as, social media marketing, they also use a more specific method called, youth marketing. Youth marketing is a group of people broken down into small segments depending on their age, which includes tweens, teenagers, college students, and young adults typically around the age of twenty-four. By using this method of adverting, companies create advertisement campaigns and products specifically targeted to the age group, which then helps them determine their next targets and business partners on social media. As stated before, “young people are key to numerous markets, from mobile, fashion and technology to alcohol, snack foods and entertainment… This audience spends money” (Mitchell). Imagine shopping centers in the area
As might be expected, the millennial generations as a whole are passionate about the technological and communication advances in the past decade with the internet and social media. “A new Pew Internet Project report reveals that 93% of young adult’s ages 18‐29 are online” (Andrew January 14 to 27, 2010). This allows access for marketer’s access to the generation in a different way than previous generations.
This section should consist detailed information in regards to the consumers, a company analysis, possible collaborators, competitors, and the business climate (Tanner, Jr. & Raymond, 2012). Since consumers are the center of all marketing plans, they should be the starting point to the market section. Break the potential consumers into segments, starting with the most important and working down to the least important. Readers will want to know; who does the market consist of, the reason these consumers purchase the products they do and how they fill their personal value equation, their current buying process and the needs the offering meets for these potential consumers. Readers should be able to understand how each segment differs and how the total offering will satisfy the needs of each
According to Maslowsky (2013), an effective marketing strategy for Generation Z was a high priority based on its competitive nature and short window of influence. Moreover, companies and organizations of all sizes are taking notice to this class of individuals. Recently, the Chief Operating Officer of Snapchat, the latest social media phenomenon, Emily White shared that the habits and characteristics of Generation Z, were considered to be the most influential people in current times that grew up with the internet (Glum, 2015). This research study will provide community college administrators with a prospective on how to market directly to Generation Z while focused on both their wants and needs in higher
Children learn their consuming behavior as they observe their parents’ actions. “Researchers find evidence of intergenerational influence when they study the product choices of mothers and their daughters”. (Solomon, 2011) Because parents are the most important influencer in the consumer development process, smartphones have to first be convincing for parents to carry them, in order for kids to be exposed to them, and eventually own them. Passing down product preference from generation to another promotes brand loyalty. Marketing strategies approach adults in a different way they approach children. Marketers should highlight to the parents the positive effect of the smartphone on the child and the parents themselve...
Development of the iPod: The iPod is a portable digital music player that holds up to ten thousand songs in a small, hand-held device that is lighter and thinner than two CD cases. iPod features a touch-sensitive navigational wheel and buttons, and an intuitive interface designed for one-handed operation. Songs are stored in several digital audio formats, delivering the highest sound quality. The iPod was born out of the idea dreamed up by Tony Fadell, an independent contractor and hardware expert, to take an MP3 player, build a Napster music sale service to complement it, and build a company around it. Fadell shopped the idea around to several companies and was turned away by all of them, except Apple. Apple hired Fadell in early 2001 and assigned him a team of about 30 people to develop the iPod. Fadell predicted that the iPod would remold Apple and that 10 years from now it would be a music business, rather than a computer business.
largest generation. Due to its large size, the Baby Boom generation has had a significant impact on society, business, and the economy. The impact of the generation has been felt in all areas of consumer spending, from increased sales of baby products when they were young; to rising demand for houses as they set up their own households; to growth in retirement savings vehicles as they prepare for their senior years. Members of the Boomer generation share many characteristics, making it possible for companies to target the
The explanation behind this is that the gadgets, for example, iPods and iPads are anything but difficult to use because of their touch screen quality which is useful for youngsters. In addition, folks can download learning diversion applications on Apple gadgets to teach youngsters and children. Grown-ups are likewise one of Apple Inc.'s target markets. The new IPhone and other product line will be valuable to grown-ups for their ordinary needs, for example, telephone calls, map headings, web association, records and cameras. Due to the premium prices charged for Apple products, the best target consumers are the wealthier teenagers. The next convient target market are millennials who are the next demographic after the teenagers. Millenials constitute a perfect target market. This is because they are hooked into technology and they would enjoy exploiting the numerous benefits the new products will provide. Consequently, this will increase the level of sales and overall wealth for the company (Annacchino, 2007). In conclusion, conveying these gadgets makes grown-ups lives much simpler for every day communication as these products are light and
Similarly to Vernon’s product life cycle, Porter’s (1990) Diamond Model theory attributed national competitiveness to a nation's competencies and technology , which are similar to Vernon’s stages within the product cycle which an industries position is said to be shaped by innovation, industry structure and then nature of competition. Similarly to Vernon’s product life cycle, Porter’s (1990) Diamond Model theory attributed national competitiveness to a nation's competencies and technology , which are similar to Vernon’s stages within the product cycle which an industries position is said to be shaped by innovation, industry structure and then nature of competition. Similarly to Vernon’s product life cycle, Porter’s (1990) Diamond Model theory attributed national competitiveness to a nation's competencies and technology , which are similar to Vernon’s stages within the product cycle which an industries position is said to be shaped by innovation, industry structure and then nature of competition. Similarly to Vernon’s product life cycle, Porter’s (1990) Diamond Model theory attributed national competitiveness to a nation's competencies and technology , which are similar to Vernon’s stages within the product cycle which an industries position is said to be shaped by innovation, industry structure and then nature of competition. Similarly to Vernon’s product life cycle, Porter’s (1990) Diamond Model theory attributed national competitiveness to a nation's competencies and technology , which are similar to Vernon’s stages within the product cycle which an industries position is said to be shaped by innovation, industry structure and then nature of competition. Similarly to Vernon’s product life cycle, Porter’s (1990) Diamond Model the...
...The importance of the generational mix within an organisation is that it brings about inclusivity and helps generate new innovative ideas that could bring the organisation to its sustained competitive advantage. With each age group with its expectations by interacting with one another, there is knowledge and experience exchange.
This will not only maximize the company’s operational expenses by concentrating only to a particular segment of the age bracket of consumers by providing them product lines that will suite their taste and demands it will also allow the company to set the trend as to what is the next big exciting thing this season. In this case, the company’s resources will be used properly and is expected to increase its market share continuously leaving the competitors far behind. (Starbucks,
Some people feel that marketing is nothing but placing an advertisement that sells a product or service. It is far more complicated than that. It requires many tools, methods, and concepts in order to ensure the product or service success. Marketing requires much forethought and strategies. Marketing needs to be handled in a methodical and organized fashion, otherwise risk for failure is inevitable. Many feel that competition is bad for marketing, yet it is actually a great tool in which marketers can adjust their product or service offerings. Even though healthcare mainly consists of services, these services still need to be sold to the public. This essay is going to demonstrate all of the different tools, techniques, methods, and concepts
As Generation Y, we are 63 million members strong and spend more than a billion dollars annually (Marketsource). With such spending power it is easy to see why companies choose us as their target market. We have grown up in a "'consumption culture" are "taught that (we) will be satisfied if we purchase products to fill our wants and desires" (Youth in the Third Millennium). Perhaps this need to buy things is only a progression ...