LITERATURE REIVEW.docx

7/29/2019 LITERATURE REIVEW.docx

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LITERATURE REIVEW

MARKETING

The American Marketing Association (AMA) defines marketing as an

organizational function and a set of process for creating, communicating and delivering

value of customers and for managing customer relationship in ways that benefits the

organization and its stock holders.

MARKETING STRATEGY

The marketing concepts of building an organization around the profitable

satisfaction of customer needs has helped firms to achieve success in high-growth,

moderately competitive markets. However, to be successful in markets in which

economic growth has leveled and in which there existing many competitors who follow

the marketing concepts a well developed marketing strategy is required. Such a

strategy; considers a portfolio of product and take into account the anticipated moves of

competitors in the market.

FORMULATING THE MARKETING STRATEGY

Marketing strategy is a board concept of low resources is to be deployed to

achieve market success marketing competition, segmentation, pricing, promotion and

distribution.

Basically formulation of marketing strategy consists of two main steps:

1. Selecting the target market.2. Assembling the marketing mix.

SELECTING THE TARGET MARKET

When the right target market for the firm is selected half of the job is over. In

effect, target market selection boils down to deciding what part of the market are going

to serve? What pert of the market we choose not to serve? And, what is the logic of

selecting a particular segment? Careful selection of a target market is necessary for an

organization to achieve its marketing objectives many businesses have failed becausethey did not adequately identify the target market.


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ASSEMBLING THE MARKETING MIX

Marketing mix is a popular usage in the study of marketing. The basic

components of marketing mix are product, price, place and promotion. It is also known

as 4 ps of marketing. The marketing strategies of a firm revolve around these fourelements. The varying mix of these four ingredients of influences the demand for a

product and customer satisfaction. A firm has to prepare mix of right product, right

price, right place and right promotion to attain success in marketing.

The3 effective mix of these 4 ps, the marketing can be a great success.

MARKETING STRATEGIES THROUGHOUT THE PLC

Just too biological cycles progress from birth through growth and decline, soda

product life cycles. A product life cycle has four major stages: INTRODUCTION,

GROWTH and MATURITY AND DECLINE. Each stage of the product life cycles

(PLC) calls for different marketing strategies. As a product moves through its cycle, the

strategies relating to competition, promotion distribution pricing and market

information must be periodically evaluated and possibly changed. We shall examine

now in brief the strategies adopted at each stage.

STRATEGY AT THE INTRODUCTION STAGE

During the introduction stage, also called the pioneering stage, a product is

launched into the market in a full-scale marketing programmed. It has gone through

product development, including idea screening and market test. Introduction stage is

marked by slow growth and minimum profits as the product is pushed into distribution.

Price tends tube high because cost is high. The whole product maybe new or it may be

an improved version of an existing product. While launching a new product, marketing

management can set a high or low level for each marketing variable. The pioneer

should analyze the profit potential of each product market singly and combination anddecide on a market expansion path. Because consumers are unfamiliar with innovative

product, a pioneering firm promotional programmed is designed to stimulate demand

for the entire product category, rather than a single brand. Introduction is most risky and

expensive stage.

One of the crucial decisions to be taken in the marketing pioneering stage is the

pricing strategy tube adopted for the product.

Following are the pricing strategies:-

1. Market skimming


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2. Market penetrationThe skimming strategy will involve high price, taking advantages of early entry and

the relative novelty of the product in the market pioneering stage.

The penetration pricing strategy will involve low price with a view to having a

good market coverage and an eventually by mass market for the product. It also aims at

keeping the completion out.

The kind of pricing strategy a firm will adopt in the pioneering stage may vary,

depending on the characteristics of the product, the market characteristics and

objectives of the firm.

STRATEGY IN GROWTH STAGE

This is the market acceptance stage. It is marked by rapid sales growth and

increasing profits. The goals are to establish and fortify the products market position by

encourages brand loyalty. Competitors enter the market of tern in large number if the

profit outlook is particularly attractive. During this stage the firm uses several strategies

to sustain rapid market growth as long as possible. The strategies have the following

elements;

1. Product quality is improved. New features are incorporated2.New models are introduced.3.New market segments are tapped.4. Brand building promotion is resorted to.5. Price may be lowered to attract the next layer of price sensitive buyers.6. It shifted from product awareness advertising to product preference advertising.

STRATEGIES AT MATURITY STAGE

Most products are maturity stage of the life cycle therefore most of marketing

management deals with mature products. Several companies think of give up the

product once it turns weaker committing resources in this way o either more profitable

products or new products. Still what is needed is to explore the untapped potential of

the old product. There are strategies of market modification, product modification and

marketing mix modification available to the marketers. A market can be expended by

increasing either or both of these contributory factors. Product modification strategy can

be adopted in following quality improvements; feature improvements; and style

improvements; The marketer may try to improve sale though altering one or more

elements of the marketing mix like price distribution, and promotion alternative as

required by the demand of the environment.


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STRATEGIES DURING THE DECLINE STAGE

Most of the products show a decline in sales ultimately, primarily because of a

number of new products begin their own life cycle and replace the old product. The

decline may come fast in the case of fashion products or consumer electronic goods. Inorder to deal with the aging products, a company has to take a number of decisions. In

this stages marketer must determine whether to eliminate the product or try to

reposition it to extend its life. The companys task during this stage is to recognize the

decline and to decide whether it should maintain, harvest or drop the product.

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LITERATURE REIVEW.docx