Chapter 11 12 Marketing Strategies Course BUS 101

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 R 8 – 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