Marketing and Customer Value PDF

EC1 | MANALANG | BAENT1E Marketing and Customer Customer value marketing. Customers Value regret purchasing if they feel that the Customers a person or organization total cost of the item outweighs the that buys goods or services from a CFOFèUT FTQFDJBMMZJGZPVIBWF store or business. DPNQFUJUPSTXIPPçFSCFɆFS suggestions for similar products and.BSLFUJOHJTUIFBSUPGBɆSBDUJOH services. BOELFFQJOHQSPèUBCMFDVTUPNFST Customer value marketing is the JODSFNFOUBMQSPèUGSPN consuming a What are marketing and product after the customer pay customer values? s something in return. The term value Customer value marketing measures EFTDSJCFTBDVTUPNFShTCFOFèUT the value of a product or service and from a product. compares it to possible alternatives. This is to ascertain if the consumer Customer Value Marketing Parameters IBTSFDFJWFETVêDJFOUWBMVFGPSUIFJS These are: price for the product/service. -Quality - is a customer's perception of the -Price value of your product or service. The -Service CFOFèUTUIFTFQSPEVDUTBOETFSWJDFT -Marketing / Branding provide to the target market, or the -Social Impact value of the money they provide. -Previous Product Experience The Drivers of Customer Value Calculation of Customer value Marketing are: marketing types Product Features Customer value marketing can be -Outstanding quality service calculated in two ways: desired value -Marketing trademark price and perceived value. -Existing relationships or experiences The desired value is the customer's -Personal Experience and Educational expectation even without purchasing Bias the product. The perceived value includes the cost of calculation. How your company creates customer value marketing?  The actual value comes after consuming the product. Customer value marketing measures  If the actual value is higher than the value of a product or service and the perceived value, the compares it to possible alternatives. EC1 | MANALANG | BAENT1E customer's value is very high and vice -When customers realize that they versa. have received positive value from the money paid for their products, they buy Cost QMBZTBWFSZTJHOJèDBOUSPMFJO again, spread word of mouth, and lead customer value marketing as it is a to market success. parameter that allows customers to -Customer value marketing is one of evaluate similar competitors. As a the most critical parameters in a result, similar products with the same business, but it is challenging to QFSDFJWFEWBMVFNBZIBWFEJçFSFOU apply and calculate. customer values depending on the -Therefore, it is essential for the selling price. pricing and product departments that may take advantage of it to The concept of customer value strike the right balance between marketing is fundamental to all features and pricing to derive value marketers. Any product or service can after purchase. only be sold if the customer derives a TQFDJèDWBMVF5IFSFGPSF DVTUPNFS WBMVFNBSLFUJOHJTEFèOFEBTDSFBUJOH Tips to increase customer communicating, and delivering value. value marketing techniques -Evaluate the customer experience -Segment your customer base Importance of Customer -Focus on more than the price Value marketing -Collect customer data -Customer interests are essential to -Respond to the most loyal customers both the customer and the producer or manufacturer. -Customer value marketing is an Customer Value Marketing JOEJDBUPSUIBUDBODSFBUFCFɆFS Techniques QSPEVDUBOETFSWJDFPçFSJOHT 6TJOHJOTJHIUTUPBɆSBDUOFX -Positive customer value marketing customers can spread your perceived keeps the product in demand in the value from genuine sources that new market and leads to the repetitive customers are likely to trust: business of the seller or manufacturer. -However, if you do not make a 1) Evaluate the customer experience TJHOJèDBOU (or non-TJHOJèDBOU CFOFèU If you want to increase customer value, from a product or service after paying it's best to start by analyzing your for it, that product will not be resold. customer experience. Create a - Customer value marketing customer journey map that outlines can also be regarded as "cost each step a customer takes when performance." purchasing a product from the EC1 | MANALANG | BAENT1E company, looking for interactions that customer feedback, including insightful can cause friction within the statistics. experience. Visualizing every action a customer takes makes it easier to 4) Reach the most loyal customers identify value-added opportunities. You may think that they are already HFɆJOHWBMVFGSPNZPVSDPNQBOZ 2) Focus on more than the price because their customers are loyal. And 4PNFDPNQBOJFTèOEJUDIBMMFOHJOHUP you will be correct. But just because compete on price alone. The cost of you have loyal customers doesn’t mean manufacturing a product is static, and that you don't need to add customer there may not be much room for a value. *ODSFBTJOHBEEJUJPOBMCFOFèUT company to lower its price. But that through loyalty programs can add even doesn't mean you can't get a more value to these customers. This competitive quote in your industry. This approach retains the most valuable JTXIFSFZPVOFFEUPèOE alternatives BVEJFODFBOEBɆSBDUTOFXDVTUPNFST to add value to your customer For example, you can take advantage of experience. You must know that the it in exchange for customer consumers want everything from recruitment. Invite your customers to convenience to performance. There are provide feedback or write a testimony NBOZCFOFèUT besides money that to share a positive experience with drive people to buy your product. potential MFBET"OPUIFSCFOFèUJT added to the customer value marketing 3) Collect customer data equation, as 93% of consumers use *UJTEJêDVMUUPNBLFFçFDUJWFDIBOHFT reviews when making purchase by looking at customer value marketing decisions. from a business perspective. Instead, the focus should be on the customer 5) Reach the most loyal customers recognizing the product or service's You may think that they are already value. To do this, you need access to HFɆJOHWBMVFGSPNZPVSDPNQBOZ quantitative and qualitative customer because their customers are loyal. And data. This gives the management team you will be correct. But just because facts and statistics to justify the you have loyal customers doesn’t mean proposed changes. Executives can that you don't need to add customer NBLFDPOèEFOUEFDJTJPOTLOPXJOHUIBU value. Increasing BEEJUJPOBMCFOFèUT their perception of customer value through loyalty programs can add even marketing aligns with their customer more value to these customers. base. In addition, it is essential to collect both quantitative and 6) Segment your customer base qualitative data to provide a diverse As mentioned earlier, customer value dataset that captures marketing depends on the interviewee, EC1 | MANALANG | BAENT1E and customer needs BOEHPBMTJOéVFODF Key Takeaways: UIFEFèOJUJPOPG"value." This leads to For a long time, the sole purpose of a discrepancies in your company's DPNQBOZXBTUPNBLFBQSPèU This was reputation, as not all customers are the forerunner of customer value the same. For this reason, it is marketing. To be a value- focused essential to divide your customer company, all roles need to work with CBTFJOUPTQFDJèDUBSHFUHSPVQT4UBSU customers, talk to senior management, with the buyer's persona and use and assign customer roles customer data to identify particular buying behaviors. To become a customer value marketing- focused company, front- line employees OFFEUPCFUSBJOFEBOEDFSUJèFEUP 5 Ideas for Adding deliver value to their excellent Customer Value marketing customer service and customer -Make the value of money look bigger purchasing experience than it is. Take your customers one step further and give them gifts and Total Customer Value Marketing - Total additional services. Make them feel customer value marketing means cherished shifting from product-oriented to -Make it easy for them to purchase customer-oriented marketing. This TFSWJDFTBOEQSPEVDUT0çFSBWBSJFUZ requires implementing a customer- of payment options, deliveries, and centric vision that represents a more TJHOJèDBOUTIJGUJOBDPNQBOZhT - Create genuinely unique value strategic thinking propositions, especially in the case of B2Bs. Tell your customers why they Customer Value Marketing Mapping: A buy the product more than their method of measuring general competitors performance against competitors by - Work on your brand - Your company's comparing the cost of a product to the name must be similar to the value. QSPèUTBDVTUPNFSDBOPCUBJO Develop unique methods such as dealing with customers and handling complaints carefully - Provide excellent customer service. After all, both employees and customers are human. Therefore, treating them that way is advantageous for both parties EC1 | MANALANG | BAENT1E Consumer Markets and Why Is Consumer Behavior Important in Purchasing Behavior Marketing? %FèOFDPOTVNFSNBSLFUT One way that marketers look at Markets are composed of individuals or consumer behavior is by analyzing households that purchase goods and demographics. Knowing statistics services for personal consumption. such as age, income and education level can help predict behavior. For example, A consumer market is one were a 2022 survey of buyer preferences retailers sell goods and services to found that millennials respond best to customers for personal use or word-of-mouth recommendations. DPOTVNQUJPO*UEJçFSTGSPNUIF business market because buyers in How does consumer the consumer market purchase products and services for individual behavior impact use, UPSFTFMMGPSBQSPèU organizations? 1) Identifying market opportunity What is consumer behavior? $PNQBOJFTNVTUèSTUCFBXBSFPGXIBU Consumer behavior studies how people their customers are looking for to buy and use products, services, identify a market opportunity. The best experiences, and ideas. It is essential way to do this is by conducting a because it helps businesses thorough market analysis and understand their customers’ needs, identifying key trends. This can be done wants and desires and create products through surveys, focus groups, and accordingly. other tools. Why Is Consumer Behavior Important in 2) Selecting target market After Marketing? identifying the market opportunity, it By understanding how buyers think, is time to select which customers you feel and decide, businesses can will target. You may want to consider determine how best to market their demographics such as age, gender, and products and services. This helps ethnicity; psychographics such as marketers predict how their personality traits or values; or even customers will act, which aids in geographic location if your product has marketing existing products and geographic limitations. services. It also enables innovative businesses to identify new 3) Customer retention Once you have opportunities before others do. JEFOUJèFEZPVSUBSHFUNBSLFU ZPVS (Southeastern Oklahoma State next goal should be to retain the University Online, 2023) customers by providing high-quality products at competitive prices and EC1 | MANALANG | BAENT1E excellent customer service whenever expand their reach into new markets or possible. This means listening carefully demographics. to their needs so that you can meet UIFNCFɆFSUIBOBOZPOFFMTF 8) Address custom needs Understanding your customers’ needs 4) Dynamic nature of the market The is essential for any business, especially market is dynamic, which means that it those that serve niche markets or have changes quickly and frequently. This can QBSUJDVMBSPçFSJOHT'PSFYBNQMF B be a challenge for organizations trying company that sells specialty products to predict how consumers will behave. like organic food or luxury home goods Still, it also means that those who can will need to know what items their adapt and adjust their strategies can customers are interested in and how gain an advantage over their much they are willing to pay. competitors. 5) Marketing-mix decisions Marketing- Definition and examples of mix decisions are about selecting the the consumer decision- right combination of product, price, making process place, and promotion. Some companies What is the consumer decision making use one or two elements, but others process choose all four. Each element has its The consumer decision-making process CFOFèUTBOE drawbacks, so choosing involves èWFCBTJDTUFQT5IJTJTUIF the right mix for your company is process by which consumers evaluate vital for success. making a purchasing decision. The 5 steps are problem recognition, 6) &çFDUJWFVTFPGQSPEVDUJWF information search, alternatives resources :PVNVTUFOTVSFBOFçFDUJWF evaluation, purchase decision and post- use of Productive resources including purchase evaluation. labor, equipment, and materials needed 5 steps of the consumer by an organization to produce its goods decision making process or services. This aids in optimizing Problem recognition: Recognizes the outputs in the long run. need for a service or product Information search: Gathers 7) 'VMèMMWBSJFEDPOTVNFSQSFGFSFODFT information Consumer behavior helps companies Alternatives evaluation: Weighs understand what their customers choices against comparable XBOUBOEOFFE TPUIFZDBOPçFS alternatives products and services that appeal to Purchase decision: Makes actual their target audience. This is helpful for purchase businesses who want to Post-purchase evaluation: 3FéFDUTPO the purchase they made EC1 | MANALANG | BAENT1E 5 steps of the consumer External stimuli, like an advertisement, decision making process the smell of yummy food, etc. Need recognition (awareness): 5IFèSTU Example: Looking for a new camera and most important stage of the buying process, because every sale Search for information (research) begins when a customer becomes aware As soon as a consumer recognizes a that they have a need for a product or need and begins to search for an service. answer, you must be there to help! And Search for information (research): where do consumers generally go to During this stage, customers want to look for answers today? Google! èOE out their options. Evaluation of alternatives Example: Researching cameras (consideration): This is the stage when Now that the customer has realized a a customer is comparing options need to get a new camera, it’s time to to make the best choice. èOETPMVUJPOTUPIJTQSPCMFN*OUIJT Purchasing decision (conversion): stage, it’s imperative that you are During this stage, buying behavior visible to the consumer searching for an turns into action – it’s time for the answer. Here are some things a consumer to buy! consumer may be searching for: Post-purchase evaluation (re- Best cameras 2020 purchase): After making a purchase, 8IBUJTUIFCFTUBçPSEBCMFDBNFSB consumers consider whether it was Which cameras are top-rated? worth it, whether they will recommend the product/service/brand to others, Evaluation of alternatives whether they would buy again, and what (consideration) Now that the consumer feedback they would give. has done research, it’s time to evaluate their choices and see if there are any promising alternatives. During this Example phase, shoppers are aware of your 1. Need recognition (awareness) brand and have been brought to your The need recognition stage of the site to consider whether to purchase consumer decision making process from you or a competitor. Consumers starts when a consumer realizes a make purchase decisions based on need. Needs come about because of which available options best match two reasons: their needs, and to minimize the risk of investing poorly, they will make sure Internal stimuli, normally a UIFSFBSFOPCFɆFSPQUJPOTGPSUIFN physiological or emotional needs, such TheJSFWBMVBUJPOJTJOéVFODFECZUXP as hunger, thirst, sickness, sleepiness, major characteristics: sadness, jealousy, etc. EC1 | MANALANG | BAENT1E Objective: Features, functionality, price, ease of use Subjective: Feelings about a brand (based on previous experience or input from past customers) Example: Comparison shopping for a camera Purchasing decision (conversion) Alright, now it’s money time. This is the stage when customers are ready to buy, have decided where and what they want to buy, and are ready to pull out their credit cards. But wait! Not so fast. You can still lose a customer at this stage. This is the stage when the purchasing experience is key – it’s imperative to make it as easy as possible. Example: Abandoning checkout for a camera Post-purchase evaluation (re- purchase) In this stage of the consumer purchase decision QSPDFTT DPOTVNFSTSFéFDUPOUIFJS recent purchase. They think about how they feel about it, if it was a good investment, and most importantly, if they will return to the brand for future purchases and recommend the brand to friends and family. &YBNQMF(FɆJOHGFFECBDLBOE encouraging repeat purchases EC1 | MANALANG | BAENT1E Segmenting, Targeting & Targeting %FèOJUJPOTargeting involves selecting Positioning (STP) TQFDJèD customer segments to focus In today's highly competitive on. marketplace, the success of a business Importance: Targeting allows often depends on its ability to deliver businesses to allocate resources the right message to the right FçFDUJWFMZBOEUBJMPSUIFJSNBSLFUJOH audience. But how can you ensure that messages to resonate with their ZPVSNBSLFUJOHFçPSUTBSFUBSHFUFE chosen audience. BOEFçFDUJWF Targeting Strategies: Segmentation 6OEJçFSFOUJBUFE5BSHFUJOHTargeting %FèOJUJPOSegmentation involves the entire market with a single product dividing a market into distinct groups or service. of consumers with similar characteristics. %JçFSFOUJBUFE5BSHFUJOHTargeting NVMUJQMFTFHNFOUTXJUIEJçFSFOU Importance: Segmentation helps products or services. businesses JEFOUJGZTQFDJèDDVTUPNFS segments with unique needs and Concentrated Targeting: Targeting a preferences, allowing them to tailor single segment with a specialized UIFJSNBSLFUJOHFçPSUTBDDPSEJOHMZ product or service. Segmentation Bases: Niche Targeting: Targeting a very small Demographic: Age, gender, income, segment with a highly specialized education, occupation, etc. product or service. Geographic: Country, region, city, Positioning neighborhood, etc. %FèOJUJPOPositioning is the process of creating a unique and desirable image of Psychographic: Lifestyle, interests, a product or service in the minds of values, personality traits, etc. consumers. Behavioral: Usage rate, loyalty, Importance: Positioning helps a purchase history, etc. CVTJOFTTEJçFSFOUJBUFJUTFMGGSPN competitors and establish a strong #FOFèU5IFTQFDJèDCFOFèUT brand identity. consumers seek from a product or service. EC1 | MANALANG | BAENT1E Positioning Strategies: 5 Requirements for Effective Product Positioning: Emphasizing the Segmentation product's GFBUVSFT CFOFèUT BOE Identifying the requirements for unique selling points. FçFDUJWFNBSLFUTFHNFOUBUJPOBMMPXT companies to create marketing Price Positioning: Focusing on the price campaigns that are essential for their of the product or service relative to growth and development. competitors. 1.Measurable Brand Positioning: Creating a distinct The size BOEQVSDIBTJOHQPXFSQSPèMFT and memorable brand image. of your market should be measurable, NFBOJOHUIFSFJTRVBOUJèBCMFEBUB Competitive Positioning: Positioning available about it. A DPOTVNFSTQSPèMF the product or service against and data provide marketing DPNQFUJUPSTCBTFEPOTQFDJèD strategists with the necessary BɆSJCVUFTPSCFOFèUT information on how to carry out their DBNQBJHOT*UXPVMECFEJêDVMUUP The STP Process create advertisements for markets Segmentation: Identify potential UIBUIBWFMJɆMFUPOPEBUBPSGPS customer segments. audiences that can’t be measured. Targeting: 4FMFDUUIFNPTUBɆSBDUJWF Always ask whether there is a market segments. for the kind of product or service that Positioning: Develop a unique and your business wants to produce then compelling value proposition for each EFèOFIPXNBOZQPTTJble customers target segment. and consumers are in that market. 2. Accessible #FOFèUTPGUIF451BQQSPBDI Accessibility means that customers Enhanced Customer Focus: By and consumers are easily reached understanding distinct market BUBOBçPSEBCMFDPTU5IJTIFMQT segments, businesses can design determine how certain ads can reach products or services that cater EJçFSFOUUBSHFUNBSLFUTBOEIPXUP TQFDJèDBMMZUPUIFOFFETPGUIFTF make ads more QSPèUBCMF A good groups. question to ask is whether it’s more Optimized Resource Allocation: practical to place ads online, on print, Targeting allows businesses to focus or out of house. For example, gather their resources on the most promising data on the XFCTJUFTBTQFDJèDUBSHFU TFHNFOUT MFBEJOHUPCFɆFS30* market usually visits so you can place Stronger Branding: Positioning helps more advertisements on those build a unique brand identity that websites instead. resonates with the target audience. EC1 | MANALANG | BAENT1E 3. Substantial strategies work for a certain segment. The market a brand should want to Once those strategies have been penetrate should be a substantial JEFOUJèFE BTLZPVSTFMGJGUIFCVTJOFTT OVNCFS:PVTIPVMEDMFBSMZEFèOFB is capable of carrying out that DPOTVNFSTQSPèMFTCZHBUIFSJOH strategy. data on their age, gender, job, socio- economic status, and purchasing Gather information on target power. customers with target market It doesn’t make sense to try and reach analysis surveys: BOVOKVTUJèBCMFOVNCFSPG people — you’re just wasting resources. However, Target market analysis is an evaluation you also don’t want to market the that helps you identify important brand to a group too small that the characteristics of your target market business EPFTOUCFDPNFQSPèUBCMF for the purpose of dividing it into 4. %JçFSFOUJBCMF segments based on characteristics When segmenting the market, you you’ve chosen. TIPVMENBLFTVSFUIBUEJçFSFOUUBSHFU NBSLFUTSFTQPOEEJçFSFOUMZUP EJçFSFOUNBSLFUJOHTUSBUFHJFT*GB business is only targeting one segment, then this might not be as much of an issue. But for example, if your target market is college students, then it’s essential to create a marketing strategy that both freshman students and senior students react to in the same positive way. This process ensures that you are creating TUSBUFHJFTUIBUBSFNPSFFêDJFOUBOE DPTUFçFDUJWF 5. Actionable Lastly, your market segments need to be actionable, meaning that they have practical value. A market segment should be able to respond to a certain marketing strategy or program and have outcomes that are easily RVBOUJèBCMF As a business owner, it’s important to identify what kind of marketing EC1 | MANALANG | BAENT1E Product Offering 2) Supplementary products: These are "QSPEVDUPçFSJOHJTBDPNCJOBUJPOPG additional products, services, or products, services, and experiences a features that enhance the value of the DPNQBOZPçFSTJUTDVTUPNFST*UJT core product. For example, a software more than just the product itself. It DPNQBOZNJHIUPçFSDVTUPNFS also includes how it is markete support, training programs, or d and sold, as well as the customer’s customization options as overall experience with the company. supplementary products. 3) Bundled products: These involve Why are product offerings combining multiple products or important? services together as a package. This 5IFZIFMQUPBɆSBDUBOESFUBJO allows customers to access a customers.#ZPçFSJOHBWBSJFUZPG comprehensive solution and often products and services, businesses can PçFSTDPTUTBWJOHTDPNQBSFEUP appeal to a wider range of customers. purchasing individual components separately. 5IFZIFMQUPEJçFSFOUJBUFBDPNQBOZ from its competitors. When a company 4) Product line extensions: This refers PçFSTVOJRVFQSPEVDUTPSTFSWJDFTUIBU to introducing variations or extensions no one else does, it can set itself apart of existing products to cater to GSPNJUTDPNQFUJUPSTBOEBɆSBDUNPSF EJçFSFOUDVTUPNFSTFHNFOUTPSOFFET customers. For example, a software company might PçFSEJçFSFOUWFSTJPOTPGJUTTPGUXBSF They help to increase sales and revenue. with varying features and pricing #ZPçFSJOHBWBSJFUZPGQSPEVDUTBOE options. services, companies can appeal to a wider range of customers. This can lead to increased sales, as more customers The Benefits of a Strong will be interested in buying something Product Offering from the company. "TUSPOHQSPEVDUPçFSJOHJTFTTFOUJBM for any business that wants to TVDDFFE*UDBOIFMQZPVBɆSBDUOFX Types of product offerings customers, retain existing customers, 1) Core products: These are the main and grow your business. products or services that a company PçFST'PSFYBNQMF BTPGUXBSF Increased sales: A strong product company’s core product might be PçFSJOHDBOIFMQZPVJODSFBTFTBMFTCZ project management software. BɆSBDUJOHOFXDVTUPNFSTBOE encouraging existing customers to buy more from you. EC1 | MANALANG | BAENT1E Improved customer satisfaction: A Create a clear and concise product TUSPOHQSPEVDUPçFSJOHDBOIFMQZPV description: Your product description improve customer satisfaction by should clearly and concisely explain providing products and services what your product does, how it that meet your customers’ needs. works, and why customers should choose it. Use simple language that is Increased brand awareness: A strong easy to understand. QSPEVDUPçFSJOHDBOIFMQZPVJODSFBTF CSBOEBXBSFOFTTCZHFɆJOHZPVS Set a competitive price: Your price products and services in front of should be competitive with similar more people. products on the market. However, it’s also essential to make sure you are Enhanced competitive advantage: A QSPèUBCMF TUSPOHQSPEVDUPçFSJOHDBOIFMQZPV enhance your competitive advantage by 1SPNPUFZPVSQSPEVDUPçFSJOH EJçFSFOUJBUJOHZPVSCVTJOFTT FçFDUJWFMZLet people know about your product or service! Use a variety of marketing channels to reach your How to Create a Strong target market. Product Offering Understand your target market: Who are your ideal customers? What are What Is the Product Life their needs and wants? Once you Cycle? understand your target market, The product life cycle is the length of ZPVDBOEFTJHOBQSPEVDUPçFSJOHUIBU time that a product is available to meets their needs. customers. It starts when a product (a good or a service) is introduced into Identify your unique selling proposition the market and ends when it's removed (USP): What makes your product or from the shelves. TFSWJDFVOJRVF 8IBUWBMVFEPZPVPçFS that your competitors don’t? Your USP This concept is used by management should be the foundation of your and marketing professionals to make QSPEVDUPçFSJOH marketing and sales decisions, such as whether or not to increase advertising, Develop a compelling value proposition: reduce prices, expand to new markets, Clearly communicate the value your or redesign packaging. The process of product or service brings to strategizing ways to continuously customers. What problems does it support and maintain a product is solve? What CFOFèUTEPFTJUPçFS called product life cycle management. Your value proposition should be clear, concise, and persuasive. EC1 | MANALANG | BAENT1E Introduction Stage During the growth phase, the product becomes 5IFJOUSPEVDUJPOQIBTFJTUIFèSTUUJNF more popular and recognizable. A company may still choose to invest heavily in advertising if customers are introduced to the new the product faces heavy competition. However, product. This stage generally requires marketing campaigns will likely be geared that the business makes a substantial UPXBSETEJçFSFOUJBUJOHJUTQSPEVDUGSPN investment in advertising. At this others as opposed to introducing the goods to point, the marketing is focused on UIFNBSLFU"DPNQBOZNBZBMTPSFèOFJUT product by improving functionality based on making consumers aware of the customer feedback. QSPEVDUBOEJUTCFOFèUT FTQFDJBMMZJG it is broadly unknown what the item will Maturity Stage do. The maturity stage of the product life cycle is UIFNPTUQSPèUBCMFTUBHF UIFUJNFXIFOUIF costs of producing and marketing decline. During the introduction stage, there With the market saturated with the product, NBZCFMJɆMFPSOPDPNQFUJUJPOGPSB competition is now higher than at other product, as competitors may just be stages, and QSPèUNBSHJOT start to shrink. HFɆJOHBèSTUMPPLBUUIFOFXPçFSJOH Some &WFOJGUIFCVTJOFTTJTPçFSJOH analysts refer to the maturity stage as when sales volume is "maxed a new product or service in response to out." another business's sales, the marketing will still be focused on Depending on the good, a company may begin introducing the new product rather deciding how to innovate its product or UIBOPOEJçFSFOUJBUJOHJUGSPN introduce new ways to capture a larger market QSFTFODF5IJTJODMVEFTHFɆJOHNPSFGFFECBDL competitors' products. from customers and researching their demographics Companies often experience negative and their needs. èOBODJBMSFTVMUTBUUIJT stage. Sales tend to be lower, promotional pricing Decline Stage As the product takes on increased competition may be low to drive customer and other companies emulate its success, the engagement, marketing spending is product may lose market share. This is when high, and the sales strategy is still the decline state begins. being evaluated. Product sales begin to drop due to market saturation and alternative Growth Stage products. If customers have already decided If the product is successful, it then whether they are loyal moves to the growth stage. to the product or prefer those of competitors, This is characterized by: the company may choose to not invest in additional marketing FçPSUT4IPVMEBQSPEVDU -Growing demand be entirely retired, the company will stop -Increase in production generating support for it -Expanded availability and will entirely phase out marketing and production endeavors. EC1 | MANALANG | BAENT1E

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