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Introduction Of Marketing Management Assignment

 

ASSIGNMENT ON MARKETING MANAGEMENT

 Product 

- one or few products, relatively undifferentiated

 Price

- Generally high, assuming a skim pricing strategy for a high profit margin asthe early adopters buy the product and the firm seeks to recoup development costsquickly. In some cases a penetration pricing strategy is used and introductory pricesare set low to gain market share rapidly.

 Distribution

- Distribution is selective and scattered as the firm commencesimplementation of the distribution plan.

 Promotion

- Promotion is aimed at building brand awareness. Samples or trialincentives may be directed toward early adopters. The introductory promotion alsois intended to convince potential resellers to carry the product.

Growth Stage:

The growth stage is a period of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are targeted.Once the product has been proven a success and customers begin asking for it, sales willincrease further as more retailers become interested in carrying it. The marketing team mayexpand the distribution at this point. When competitors enter the market, often during thelater part of the growth stage, there may be price competition and/or increased promotionalcosts in order to convince consumers that the firm's product is better than that of thecompetition. During the growth stage, the goal is to gain consumer preference and increasesales. The marketing mix may be modified as follows:

 Product 

- New product features and packaging options; improvement of productquality.

 Price

- Maintained at a high level if demand is high, or reduced to capture additionalcustomers.

 Distribution

- Distribution becomes more intensive. Trade discounts are minimal if resellers show a strong interest in the product.

 Promotion

- Increased advertising to build brand preference.

Maturity Stage:

The maturity stage is the most profitable. While sales continue to increase into thisstage, they do so at a slower pace. Because brand awareness is strong, advertisingexpenditures will be reduced. Competition may result in decreased market share and/or  prices. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. The firm places effort into encouraging competitors' customersto switch, increasing usage per customer, and converting non-users into customers. Sales promotions may be offered to encourage retailers to give the product more shelf space over competing products.

RAHUL GUPTA, MBAHCS (2

ND

SEM), SUBJECT COCE- MB0030, SET-2Page 3

2Quality- Consumables which are backed through British standards regulation. Big brand names which imply a certain level of quality and trust. Health- Stress sourced from overcrowding or being unable to purchase desired products. The potential for products to contain harmful chemicals or substances. Social-Social esteem associated with large brand names. Self esteem from purchasing higher quality goods. Social- The stigma attached with shopping in a ‘cheaper’ store. Opportunities- The lack of opportunity to purchase high order goods. Table1:Benefits vs Sacrifices of shopping at supermarkets (Monroe, 1991). Customers are increasingly demanding greater convenience in service exchanges (Seiders et al, 2007), with most consumers economising the time spent shopping through bulk buying or combining trips (Popkowski-Leszczyc et al, 2004). Supermarkets provide convenience in three ways. The first is through offering a wide range of food and household merchandise under one roof (Gauri et al, 2008). Secondly, due to the unprecedented growth in the supermarket sector over the last quarter century (Lawrence and Burch, 2007) supermarkets are able to offer accessibility through having multiple store sites, which facilitate access without the need of a car (Bodor et al, 2008). The third way is through continuous access. Supermarkets offer 24-hour opening