Plc and Marketing Mix
The Product Life Cycle is an important concept in marketing. It describes the stages a product goes through from when it was first thought of until it finally is removed from the market. Not all products reach this final stage. Some continue to grow and others rise and fall.
The Introduction stage is means a period of slow sales growth as the product is intro-duced in the market. Profits are nonexistent because of the heavy expenses of product introduction. The Growth stage is means a period of rapid market acceptance and sub-stantial profit improvement. The Maturity stage is means a slowdown in sales growth be-cause the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition. The Decline stage is means sales show a downward drift and profit erode.
The Product Life Cycle can reduce time to market, improve product quality, reduce pro-totyping costs, identify potential sales opportunities and revenue contributions, and re-duce environmental impacts at end-of-life. To create successful new products the com-pany must understand its customers, markets and competitors.
Traditionally the marketing mix consisted of just 4 Ps, but now a day, it’s consisted of 7 Ps. There are Product, Price, Place, Promotion, People, Process and Physical evidence.
In case of services, the ‘product’ is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Hence particular care has to be taken in designing the service offering.
Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw material costs, in case of services attendant costs - such as
The Introduction stage is means a period of slow sales growth as the product is intro-duced in the market. Profits are nonexistent because of the heavy expenses of product introduction. The Growth stage is means a period of rapid market acceptance and sub-stantial profit improvement. The Maturity stage is means a slowdown in sales growth be-cause the product has achieved acceptance by most potential buyers. Profits stabilize or decline because of increased competition. The Decline stage is means sales show a downward drift and profit erode.
The Product Life Cycle can reduce time to market, improve product quality, reduce pro-totyping costs, identify potential sales opportunities and revenue contributions, and re-duce environmental impacts at end-of-life. To create successful new products the com-pany must understand its customers, markets and competitors.
Traditionally the marketing mix consisted of just 4 Ps, but now a day, it’s consisted of 7 Ps. There are Product, Price, Place, Promotion, People, Process and Physical evidence.
In case of services, the ‘product’ is intangible, heterogeneous and perishable. Moreover, its production and consumption are inseparable. Hence, there is scope for customizing the offering as per customer requirements and the actual customer encounter therefore assumes particular significance. However, too much customization would compromise the standard delivery of the service and adversely affect its quality. Hence particular care has to be taken in designing the service offering.
Pricing of services is tougher than pricing of goods. While the latter can be priced easily by taking into account the raw material costs, in case of services attendant costs - such as