Month: September 2009

Product Life Cycle

Many products enter in market some lasts for long time and others disappears in a small span of time. This cycle of product birth and death in the language of marketing is known as product life cycle. Product life cycle consist of four stages namely introduction stage, growth stage, maturity stage and decline stage. At each stage organization adopt different strategies to take the benefit of opportunities available as well as to minimize the threats.Every product have different life cycle from other some product resist for long time duration like Coca Cola and some products out of market within very short span of time like fashion which change with fast pace. Introduction Stage In this stage expense of products are high and profits are very low, organization focus on product quality for reputation, setting best prices that customer can afford, selecting appropriate distribution channels and promotion of the product. Growth Stage In this stage the graph of revenues increase but profits are low due to the expenses on activities like promotion and distribution. Product pricing remain stable to capture the market share. New features are added in the product to attract new customers and retain the existing one, the competition is low at this stage as not much activities are noticed by competitors. Maturity Stage In this stage customer sales reach to saturation level, competitors come up with the...

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Demarketing or Demand Management

People always think that marketing is all about increasing demand for their products but sometimes this statement does not seems true  because one of the important role of marketing is demanding management. Companies always face variable demand for their products in the market it can be very low, low, average, high and very high. This is the task of marketing management to maintain the demand of the products. This is clear that every company have limited resources for production of goods means limited customers can get the product. If the demand of the product is more than supply then companies have to apply the concept of demarketing or demand management. Demarkeitng not vanish companies product demand but it temporary reduce or shift the demand to balance the things out. This practice remain for temporary duration to level out the demand at the level of supply or below the supply level. The reason companies not go for over production due to limited facility of resource such as machinery, labor and raw material. In some cases company can raise the capacity but they knew that this fluctuation in only for limited time so they avoid to take risk.The aim of demarketing is not to destroy demand but only to reduce or shift it. For example Popular restaurants are some times fully reserved, power companies have trouble meeting demand using the peak...

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Marketing Philosophies

Marketing is the concept to know your customers needs and wants, providing products and services which serves as a solution for customers problem. In modern world organizations take care of their customers and maintaining long term relationship. In past organizations not had similar thinking as it is today, marketing concept is adopted by organization in a different way. The thinking  and perceptions of organization are refer to the philosophies “Organization picture of marketing” There are five different type of marketing concepts namely production concept, product concept, selling concept, marketing concept and societal marketing concept. Production Concept Customers buy the products which are produced on mass level at low cost and widely available in the market. This concept totally phase out customer, production take place without taking customers needs and wants into consideration. This concept works well when the demand of product is more than supply or product cost is required to be reduced by following the practice of mass production. The organization preaching this concept not last long because this concept ignore the other important factors like competition, new products, customer satisfaction etc. Organization most of the time compromise on quality in order to reduce the cost of the product which results in customer dissatisfaction leads towards product failure. Product Concept The idea behind product concept is customer will buy the product that is best in quality, design, features...

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Products VS Services

Products are the tangible entities which are offered in the market by Organization to fulfill the needs, wants and demands of the customers. Products are tangible products in the market which customers purchase from market to satisfy needs or wants. Customers always view the product in the form of bundle means the set of benefits customers get after purchasing the product. The product bundle include complementary elements like warranty, information and etc. Services are intangible entities which are offered in the marketing by Organization with product or separately. The objective of service remain similar to product fulfilling wants or demands of customers. Kotler definition of Service is “ Any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of any thing” According to American survey products failure rate is higher than service failure rate that’s the reason we can see lots of services are being offered to customer in the market in 20th century. Telecommunication, education and banking are the most growing industries in services...

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Needs,Wants and Demands

Marketing definition is based on three main terms needs, wants and demands these terms sometimes create some confusion in readers mind. This tutorials will discuss the needs, wants and demands in detail to making things easy. Needs Human needs are states of felt deprivation.Needs are the basic requirements of human being, without these basic requirements like food, cloths and shelter no one can live life in this world. The extended form of needs are health and education which for sure every on basic need in today’s world but they come after food,cloths and shelter. Marketers play no role in creating needs, they are natural default requirements of every human being. Organization already know the needs there is no requirement for any research work to develop product which covers the needs of human beings. Wants Wants are the form human needs take as they are shaped by culture and individual personality. Wants are marketed by marketers in such a way that everyone feel these wants should be mandatory part of life. We can take the examples of telephone, Internet, different variety of foods and clothing these all come under umbrella of human wants. For Example, Any person can eat food to feed himself, but he want to eat fast food, fried rice and Chinese food. Cloths are required for a person to cover himself but we can see people wearing...

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What is Marketing?

Marketing is the social and managerial process to understand the customer need and wants in order to develop the right products and services for customers. Marketing function is still under research lots more to come in future to assist and mature the marketing process and add more branches under the umbrella of marketing. The presence of marketing is everywhere on newspapers, Bouchers, advertising, TV ads, Internet, Calls, SMS it go on and on but this is the fact marketing domain is penetrated with speed all over the world including top economies like USA,China and weak economies like Afghanistan, Pakistan and Zimbabwe. The beauty of marketing that it offer lot of flexibility to marketers and marketing manager in decision making, marketing is the combination of process and intuitive thinking. The innovative ideas in marketing make the difference and provide competitive edge to the companies to promote their products in a better way as compared to their competitors. People often think that marketing is all about advertising and selling out products but that’s not the case these are just small chunks of marketing or branches of marketing.Marketing is not a norm or fashion now it become need of every organization whether it big like Microsoft or  a small shop. Marketing is the way of communication which Organization adopt to get to know about customer needs and wants and finds the solution...

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