Psychology of Colors and Product Life Cycle

Psychology of Colors

• Red is stimulating and can catch attention, often used in marketing for food products.
• Blue is associated with comfort.
• Green is associated with energy.

Product Life Cycle (PLC)

• The PLC describes four distinct stages of a product's life: Introduction, Growth, Maturity, and Decline.
• Innovators are early adopters who purchase a product despite limited information. They are motivated by pride and exclusivity.
• The Introduction stage often features high prices due to a product's uniqueness.
• Leaders are influential consumers who purchase a product due to its perceived quality and influence, driven by a need for prestige and respect.
• The Growth stage sees increased sales and profit driven by product improvements and revisions.
• During the Maturity phase, sales level off as the product becomes widely adopted. Efforts shift towards maintaining market share rather than significant growth.
• The Decline phase signifies a decrease in sales and market share. Companies may implement strategies such as price reductions or promotional offers to try and revitalize sales.

Boston Consulting Group Matrix (BCG Matrix)

• Analyzes a product's marketability and sales performance.
• Labels products into four categories: Dog, Question Mark, Star, and Cash Cow.
• The Dog category represents products with low market share and low market growth, often considered candidates for discontinuation.
• The Question Mark category indicates products with low market share but high market growth. These products have the potential to become Stars or Dogs depending on future market performance.
• The Star category represents products with high market share and high market growth, considered ideal products with strong market dominance.
• The Cash Cow category includes products with high market share but low market growth. These products generate stable income and often serve as funding sources for other products.

Branding

• Branding refers to the consistent perception of a product or company formed over time.
• Brand names, such as DLSU, CSB, McDonald's, and Landbank, are examples of established brands representing a specific image and value.

Pricing Strategies

• Cost-Plus Pricing adds a profit margin to the cost of production to determine the retail price.
• Benchmarking Pricing involves analyzing competitors’ pricing strategies and adjusting prices accordingly to gain a competitive edge.
• Psychological Pricing uses "round" numbers or numbers ending in 99, creating a perception of better deals or lower prices.
• Value-Based Pricing sets prices based on perceived value and market demand, potentially justified by a product's unique features or benefits.
• Loss Leader Pricing involves selling a product at a loss to draw customers and potentially increase sales of other products.

Place (Distribution)

• Place refers to the distribution channels through which a product is made available to its target market.
• The Value Chain Analysis examines the different stages involved in a product's journey from raw materials to its final consumer.

Support and Primary Functions in Value Chain

• Support Functions include administrative, human resources, technology, and purchasing activities that contribute to the overall operation of a business.
• Primary Functions directly involve the creation and delivery of a product, including manufacturing, inbound logistics, work in process, finished product, marketing, sales, warehousing, storage, and after-sales services.

Explore the impact of colors in psychology and their application in marketing. Additionally, learn about the stages of the Product Life Cycle, including Introduction, Growth, Maturity, and Decline. This quiz covers key concepts that influence consumer behavior and market strategies.