This document provides an overview of marketing concepts and the marketing environment. It begins with definitions of marketing from various scholars such as the American Marketing Association, Philip Kotler, and Peter Drucker. It then discusses the types of marketing including traditional, digital, social, and mobile marketing. Next, it explores the internal and external factors that make up the marketing environment, including customers, competitors, public, suppliers, economic conditions, technology, and government regulations. Environmental scanning techniques like SWOT analysis, PEST analysis, and Porter's Five Forces model are also summarized. The document aims to give the reader a high-level understanding of foundational marketing concepts.

1. KAMAL SINGH
Sr. Faculty – Marketing &
Merchandising
FOOTWEAR DESIGN & DEVELOPMENT INSTITUTE
(Institution of National Importance- FDDI Act, 2017)
MARKETING
SBU
Vision & Mission
Segmentation
Sales
Promotion
Digital Marketing
Product
Place
Marketing Myopia
Margins
Planning
Management
Controlling
Strategy
Target
Customer
Need & Want

2. Introduction to Marketing
The word Market' has
been derived from
Latin word VlarketTJs' which refers to
the method or place of contact between
buyers and sellers. Hence, we can say a
market is the place where people gather
for the purpose of buying and selling of
goods and services. For Example : High
Street Markets, Malls tec.
Whereas marketing is an activity of
creating, promoting, delivering, and
exchanging offerings that have value for
customers, clients, partners, and society
at large.
Perceived Value

3. Definitions Given By Marketing Scholars
American Marketing
Association’s
Philip Kotler
Regis Mc.Kenna
“Marketing is the activity, set of institutions, and
processes for creating, communicating, delivering,
and exchanging offerings that have value for
customers, clients, partners, and society at large.”
“Marketing is the process by which companies
create value for customers & build strong customer
relationships in order to capture value from
customers in return”. “Identifying & meeting
human needs & social needs” or “Meeting needs
profitably”.
“Everything you do – not just your products,
pricing, promotion, and distribution, but even your
billing, how you answer the phone, your speed of
handling problems –it all affects how your
customer perceives your company, so everything is
marketing”.

4. Peter Drucker
Wikipedia
“Marketing is not only much broader than
selling; it is not a specialized activity at all. It
encompasses the entire business. It is the whole
business seen from the point of view of the final
result, that is, from the customer’s point of
view. Concern and responsibility for marketing
must therefore permeate all areas of the
enterprise.”
“Marketing is the process by which companies
create customer interest in products or services. It
generates the strategy that underlies sales
techniques, business communication, and
business development. It is an integrated process
through which companies build strong customer
relationships and create value for their customers
and for themselves.”

5. Types of Marketing
Types of
Marketing
There are various types of marketing defined by different scholars of
marketing, but some common types of marketing are:
Traditional Marketing
Digital Marketing
Social Marketing
Mobile Marketing

6. Types of Marketing
Traditional Marketing: Traditional
marketing includes face to face selling,
direct mail, adds through print media or T,V
commercial, telemarketing in traditional
marketing marketers tries to catch the
attention of customers by adopting any
means of connectivity.
Digital Marketing: In case of digital
marketing marketers tries to connect with
target customers via websites, social media,
video sites, emails, mobile phones and apps
and forums.
Social Marketing: Social marketing is done
with an objective to return something back
to society because marketers conducting and
generating profit from society only.
Example: TATA GROUP (Running many
industries just for the benefit of society like
TATA INTERNATIONAL at Devas M.P. (No
profit sharing by TATA GROUP)
CSR (Corporate Social Responsibilities)
Mobile Marketing: Mobile is a real time
information searching tool of now a days,
customer prefer to collect all sort of
information and feedback from the online
source with the help of their mobile phones
hence marketers also use mobile phone a
important source of sharing information's.
Example: Promotional offer calls

7. Marketing Vs Marketing Concepts
Marketing
Marketing is the process of identifying
the needs and wants of target customers
and meeting those needs and wants with a
certain level of profit and convenience,
further it can be defined as the process of
promoting business products and services
or an action taken to attract the focus of
customers towards the offering of the
organization.
Marketing Concepts
Marketing concepts are the combination
of various activities or processes , which
are based on the organization internal &
external environment and the elements of
such environment is used by different
organization in a different ways
depending upon the capabilities of an
organization . This environment is also
known as various approaches or
philosophies of marketing designed and
framed by organizations as per their
requirements.Example: Television commercial,
Bill boards, Pop ups on social sites,
adds on print media (In order to
attract customer towards the
organization product and services). Example: Selling approaches,
Production Approaches…

8. Importance of Marketing
Importance of
Marketing
Customer Satisfaction
Competitive Advantage
Corporate Image
Business Growth/ Expansion
Economies of scale
Efficiency
Organizational Objectives
Brand Loyalty
Brand Image
Stake holder’s Benefit

9. Scope of Marketing
Today the scope of marketing
has become quite extensive and
the satisfaction of customer is the
prime objective that need to be
kept in mind by each and every
marketers.
The marketing process is very
dynamic by its nature and it
continue after the sale of the
product. Marketing mainly
focuses on building brand image
of the organization and educating
target customers about the
product and services.
Study of consumer needs and wants
Study of consumer Behaviour
Production Planning & Development
Distribution
Promotion
Consumer Satisfaction
Marketing Control
Pricing Policies

10. Study of Consumer Wants
and Needs
Production Planning &
Development
Study of Consumer
Behaviour
It is very much important for the marketers to
understand the needs and wants of the customers in
order to meet the expectations of the customers by
providing them goods and services to satisfy their needs.
Product planning & development process is starts as
soon as one generate some idea for starting some
business venture and it continue till the
commercialization of the product or services. It
comprise of all those aspects of marketing like Branding,
Customer education, Sales strategy formulation, Team
building etc.
For marketers it is essential to understand the buying
behaviour of customers because buying behaviour helps
marketers to analyze the customers - what they buy,
When they buy, How they buy and more importantly
how much they buy which help them in developing their
merchandised mix. Further it also helps in segmenting of
their target market and designing marketing strategies
for them.

11. Consumer Satisfaction
Promotion & Distribution
Consumer satisfaction is the prime objective of the
marketers because the survival of the any
organization is based on the retention of the
customers with them and it can only be possible if
you meet the expectation level of customers or to
satisfy the customer through its product and
services.
Promotion includes advertising, personal selling
and sales promotion, through this medium
marketers tries to communicate with the target
customers and stimulate them to buy their product
and services which can be done only through
proper designed distribution channel or we can say
easily availability of product and services, as time
is money for a customers now a days.

12. Marketing Control
Pricing Policies
For the effective execution and success of marketing plans
it is essential for the marketing managers to follow up each
and activity of marketing and its impact on the customers .
“Bridging the gap of where we are and where we want to
be” this can only be done through putting control
mechanism at each and every marketing activity to control
the deviation from the desired objectives.
Pricing policies must be designed in a very careful manner
because for customers pricing means cost and if they are
getting better option from your competitor than you may
lose your sale hence while framing pricing policies it is
very much important for the marketers to conduct bench
marketing or market survey first.

13. Marketing Myopia
Marketing Myopia was developed by the
Theodore Levitt in Harvard Business
Review. Marketing Myopia is a condition in
which firm has narrow minded-
marketing approach and it focuses only on
its own internal and external capabilities
with an opinion that what ever they
manufacture will be purchased and like by
the customer.
They fails because they do not study the
need and wants of customers or the market
trends.
Marketing Myopia
Shortsighted
Approach to
marketing
Growth of the
industry came
down due to
rigidness to wards
change
Focus is not on
customer
preferences just
producing as per
their own ideas
Product fails
due to lack of
customary
vision

14. When did Marketing Myopia Developed
Marketing Myopia is developed when company does not focuses on long term
benefit rather it focuses on short term benefits.
More focus on selling rather than building relationships with the customers
Mass production without knowing the demand
Not changing with the dynamic consumer environment
Giving importance to just one aspect of the marketing attributes
without focusing on what customer actually wants

15. Marketing Environment
Marketing Environment
Marketing environment is the firm
internal and external elements
which in combination provides an
opportunity to the firm to serve the
customers of their target market.
The marketing environment can be
studied under two major
categories:
Internal Environment
External Environment
Factors Affecting Marketing
Environment
Marketing Environment
Micro Environment
(Controllable)
Macro Environment
(Uncontrollable)
Task Env.
Suppliers
Competitors
Customers
Intermediaries
Internal Env.
Company Itself
Members and
Management
Political,
Social,
Economical,
Technological

16. Internal & External Environment
Internal Env.
Internal environment is the environment
which is under the control of the control
of the management i.e. management can
change the variables as per their
requirement or as per the demand of the
market in which they are operating.
OR
The internal environment can be defined
as the organization culture, events, and
factors within an organization which
having an ability to affect the decision
making of the organization.
External Env.
External environmental variables are
those variables which are not under the
control of the management such as govt.
polices, natural disasters etc.
OR
Internal environment constitute all those
factors that impact the overall operations
of the business organization.

17. Internal Environment Factors
Customers
Customers constitute important segment of the micro environment. Business exists to
serve its customers. Unless there are customers, business has no meaning. A company
can have different types of customers like, households, producers, retailers,
Government and foreign buyers.
Suppliers:
They supply inputs (money, raw material, fuel, power and other factors of production)
and help in smooth conduct of the business. Firms should remain aware of the policies
of suppliers as increase in prices of inputs will affect their sales and profits. Shortage of
supplies also affects the production schedules. Firms should have more than one
supplier so that change in policies of one supplier does not affect their production
schedules.
Competitors:
Competitors form important part of the micro environment. Firms compete to capture
big share of the market. They constantly watch competitors’ policies and adjust their
policies to gain customer confidence.

18. Public:
“A public is any group that has an actual or potential interest in or impact
on an organization's ability to achieve its interest”. Public can promote or
demote company’s efforts to serve the market.
Market intermediaries:
They are the links that help to promote, sell and distribute the products to
final consumers. They are the physical distribution firms (transport firm),
service agencies (media firms), financial intermediaries (banks, insurance
companies) etc. that help in producing, marketing and insuring the goods
against loss of theft, fire etc.

19. External Environment Factors
Social – how consumers, households and communities behave and their beliefs.
For instance, changes in attitude towards health.
Legal – The govt. legislation in society affects the business to a great extent. E.g.
changes in employment laws on minimum wage rate.
Economic – economic affects on business in terms of taxation, government
spending,, interest rates, exchange rates are some of the economic factors.
Political – Change in govt. directly impact the business operations as new govt.
may change the entire policy structure.
Technological – how the rapid transformation & innovation affect a business and
over all business decision making.
Ethical – what is regarded as morally right or wrong for a business to do. For
instance should it trade with countries which have a poor record on human rights.

20. Economic Environment:
The economic environment
includes determinants which
impact customers’ purchasing
power and spending criteria.
These factors include the GDP,
GNP, interest rates, inflation,
income distribution, government
funding and subsidies etc.
Physical Environment:
The physical environment
constitutes the natural
environment in which the
business carry out. It further
includes the climatic conditions,
environmental change,
accessibility to water and raw
materials, natural disasters,
pollution etc.
Technological Environment:
The technological environment constitutes
innovation, research and development in technology,
technological alternatives, innovation inducements
also technological barriers to smooth operation.
Technology is one of the biggest sources of threats
and opportunities for the organization and it is very
dynamic.
Political-Legal Environment:
The political & Legal environment includes govt.
laws and regulations within which the business to be
carried out.
Social-Cultural Environment:
The social-cultural aspect of the macro environment
is made up of the lifestyle, values, culture, prejudice
and beliefs of the people. This differs in different
regions.

21. Marketing Information System
Marketing Information system
is also called as Management
Information system designed
within the organization in
order to take logical and
rational business/ marketing
decisions based on relevant
information. It is a process
where data is gathered, stored,
analyzed and finally
distributed to the marketing
mangers as per their
requirements, it helps them to
take business decisions
strategically.
Internal Records
of the company
Marketing Intelligence
System
Marketing Decision
Support System
Marketing Research
& Analysis
Marketing
Information
System

22. How Information System Works
Assessment of the beneficial Information:
The marketing information system assesses the required or preferably required
information. For this purpose, the organization should prepare some guidelines for the
necessary information and all such information's time to time as per the requirement
share with the concerned managers.
Development/ Processing of the Information:
Internal information regarding various aspects of the business plays a crucial role for
the business managers as it provides guidelines for the future course of actins and
supports their decision making process. Once the information is collected, analyzed,
and processed it can be used at different stages of management for taking future
decisions on the basis of past experience and informations.

23. Marketing Intelligence System:
The marketing managers need the information on certain environmental aspects in
order to design their overall marketing strategies or plans. The components of
marketing intelligence vary according to the requirement of the situation, but in general
it includes both the external and internal environmental sources.
Marketing Research & Analysis:
With the exchange of information, the marketers, customers & general public are linked
by the marketing research which is conducted with the help of marketing information
system.

24. Environmental Scanning
Environmental Scanning is the process of
identification of marketing opportunities
and threats which directly or indirectly
affect the business or marketing decision
making process. As the word scanning
explain itself that the organization gathers
all the internal and external information's of
the organization and analyzed those
information's in order to forecast the future
course of action or develop inferences
which may support your business activities
in coming years.
Major Areas covers under of
environmental scanning are:
Economic Conditions
Competitions
Global Conditions
Employment Trends
Industry Type
Socio- cultural
Expectations

25. Techniques of Environmental Scanning
External Scanning Techniques
 The SWOT Matrix
 PEST Analysis
 Porter’s Five Forces Model Analysis
Internal Scanning Techniques
 Organizational Resources
 Organizational Behavior
 Competency

26. SWOT Technique
S -O strategies – helps to pursue
identified opportunities fit well according
to strengths of the firm.
W-O strategies – helps to overcome
weaknesses to pursue opportunities
identified.
S-T strategies – identifies ways in which
the firm can use its strengths to reduce its
vulnerability to external threats.
W -T strategies – establishes plans to
overcome the firm’s weaknesses and less
vulnerable to external threats.
Strengths
Weaknesses
Opportunities
 S-O strategies
 W-O strategies
Threats
 S-T strategies
 W-T strategies

27. PEST Analysis
PEST analysis identifies the external forces that affect the organization such as
Political, Economic, Social and Technological drivers. It is very useful for the
organization when used together with other tools such as the SWOT analysis.
P- Political Environment
E- Economic Environment
S- Social Environment
T- Technological Environment

28. Porter’s Five Forces Model Analysis
Michael Porter is has created five forces model of competitive strategy. The power of
each of these forces varies from industry to industry, but taken together they determine
long-term profitability. These five factors will affect the strategies which will be
adopted by the organization and hence should be carefully analyzed.
To be successful, the organization must respond in an effective manner to the
environmental pressures exerted on it.

29. Internal Scanning Techniques
Organizational Resources:
These are all the tangible and intangible inputs used in the organization to create the
outputs of the organization’s product or services.
Organizational Behavior:
The behavior of an organization demonstrates is the result of forces operating internally
which will determine the abilities of the organization or constraints in the usage of
resources.
Competency:
Competency of an organization is the ability to do what its competitors cannot do or the
ability to do better than what they can do. This concept is used for strategy formulation.

30. Philosophies of Marketing/ Evolution of Marketing
Concepts

31. Production Concept: Under this
approach the main focus is on improving
productivity and efficiency level of
employees in order to reduce the
production cost to distribute the product
at mass level. Such kind of approaches
are beneficial foe developing economies
where need of product is more important
rather its attributes .
Product Concept: In this approach
marketers prefer to produce only those
goods and services which are expected
and demanded by the consumers with
additional features to attract the
customers. Here marketers having views
that if customer is satisfied with their
offering than they can retain him for
longer period of time and foster loyalty
concept which enhance profit of the
organization.
Selling Concept: Under this kind of
marketing concept organizations believes
that customer only buy product and
services when he will persuade or
motivate due to promotions and
education of customers on products and
services. Moreover customer will not
respond unless and until they are not
exposed to the company offerings. Hence
sales strategies are must to be developed
by the marketers to attract the
customers.
Marketing Concepts: Here the prime
objective of the marketers is to identify
the target customers and identify their
needs and wants than try to meet those
needs and wants in order to satisfy
them. Here they believe in pull strategy
that is creating the brand image of the
company so that retention of customers
become more easier.

32. Era Prevailing attitude and approach
Production  Consumers favor products that are available and highly
affordable.
 Improve production and distribution .
 ‘Availability and affordability is what the customer wants’
Product  Consumers favor products that offer the most quality,
performance and innovative features.
 A good product will sell itself’
Sales  Consumers will buy products only if the company
promotes/ sells these products.
 ‘Creative advertising and selling will overcome
consumers’ resistance and convince them to buy’
Marketing  Focuses on needs/ wants of target markets and delivering
satisfaction better than competitors.
 ‘The consumer is king! Find a need and fill it’
Relationship marketing  Focuses on needs/ wants of target markets and
delivering superior value.
 ‘Long-term relationships with customers and other
partners lead to success’

33. Marketing Vs Selling
Marketing
 Marketing starts with buyer
Marketing based on all activities
 Marketing refers customer
satisfaction
 What should be offered? will think
 Packing is for convenient for the
customers
 Consumer determines price Customer
is first
Selling
 Selling starts with seller
 Selling based on existing activities
 Selling refers goods and services
 What is offered? is enough Packing is
enough for product protection
 Cost determines price
 Customer is last

34. Marketing Mix
Marketing mix is developed by E. Jerome
McCarthy in the year 1960’s. Generally
we, have two sets of P’s- Marketing Mix
and Service Marketing Mix.
Marketing Mix are the set of tools used
by the marketers or firms to pursue in
their target market. Hence marketing mix
are the combination of decision which are
based on the elements of marketing mix
(Product, Place , Price & Promotion) for
the betterment of their business activity.
In case of service marketing marketers
use extended P’ s of service marketing
namely- Process, Physical Evidence and
People.
Target
Market
Produ
ct
Place
Price
Promo
tion
Proces
s
Peopl
e
Physic
al
Eviden
ce

35. Elements of Marketing Mix
Product : Constituents of Product are:
Design Utility
Technology Packaging
Labeling Value
Branding Warranties
Place : Constituents of place are:
Retail Wholesale
Mail order Internet
Direct Sale Peer to Peer
Multi- Channel
Price : Constituents of price are:
Strategies: Skimming, Penetration,
Psychological, cost plus, loss leader,
competitor pricing, bench marking,
survival pricing etc.
Promotion : Constituents of promotion
are:
Special offers Endorsements
Advertisement User trial
Direct Mailing Poster
Free Gifts Samples

36. Elements of Service Marketing Mix
Physical Evidence: Constituents of
physical evidence are:
Smart Run- down
Interface Comfort
Facilities
People: Constituents of people are:
Employees Management
Culture Customer Service
Process: Constituents of people are:
Specially relevant to service industries.
How services are consumed.
Process of delivering of service.
Nature & techniques used in delivery of
services.
Service
Marketing
Mix
Physical Evidence
Process
People

37. Market Segmentation
Segmentation:
Market segmentation is a research
through which marketers tries to
identify the common determinants/
features of the population, in order
to break the total population into
smaller groups.
OR
Marketing segmentation is the
process of breaking down of large
heterogeneous market into small
areas on the basis of homogeneous
characteristics.
Total Population 1000
Male 500
Female 300
Children 200

38. The success any marketing is very much
depend upon the connect of marketers with
their target customers, and this connect can
only be done when they are having
knowledge of buying behaviour, habits and
preferences of their customers.
But identifying needs and wants or
developing connect with the huge customer
base (with entire market) is not possible,
therefore in order to overcome this problem
marketers adopted the concept of market
segmentation where they break the entire
market either into small territories or
regions on the basis of certain common
determinants of the customers and once the
region become smaller it become easier or
simple for the marketers to get connected
with the target audience/ customers and
provide them product and services as per
their expectation level.
Identify :
Identify what
customer needs
from you
through creating
small focus
groups.
Distribute:
Share the
information of
your product &
services with
target
customers
Collect: Collect
feedback from
customers whether
they are satisfied with
your product and
services.
Create: Modify
your offering as
per the feedback
customers to
remain survive
in the market.

39. Features of Segmentation
Measurable
Accessible
Comprehensive
Controllable
A segment must be divided or framed in such a manner
that its output against input can be measurable in
quantitatively.
All the segment must be easily accessible that is in terms
of geographically & economically . If customers can
easily access the product and services than it improves the
profitability of the organization as convenience is one of
major concern of customers.
The segment must be divided in a way that all the
activities designed to achieve the desired objective can be
monitor time to time to overcome from the deviation.
The main motive behind breaking of large market into
smaller parts is to control it in better way and get
connected with customers to improve profitability of the
organization.
Comprehensive means that your
segmented territory must cover all
the aspects of customer preference
and capabilities of the organizations
to meet those preferences. In short
we can say it covers all the marketing
strategies required to attract the
customers.
Profitable

40. Basis of Segmentation
Segmentation of any market can be done on following bases:
Geographical:
Countery
City
Density
Climate
Area
Population
Demographi
cal:
Age
Gender
Income
Education
Family
Social Status
Life stages
Occupation
Psychological:
Life style
AIO: Activities
Interest
Personality
Values
Attitude
Behavioral:
Benefit Sought
Purchase &
Usage
Intent
Buyer Stage
Stage of life
Cycle

41. Benefits of Segmentation
Identifying
Target Customer
Through
Segmentation
Strengthen to
dominant in
territory
Effective Source
of
Communication
of offers
Provide
opportunities to
connect with
customers
Improve
Profitability
Provide
Opportunity
for Growth

42. Market Targeting & Positioning
Targeting
After creating different segments out of
large market, then marketers induce
various marketing strategies and
promotional campaigns according to the
tastes of the customers of specific
segment. This process is called targeting.
Once market segments are created,
organization then targets them.
It is the second and important step which
marketers develop as per the environment
of the organization. Organizations with
the help of various marketing plans and
schemes target their products amongst the
various segments.
Examples: BMW launched especially
for the higher income group.
Positioning
Positioning is the last stage in the
Segmentation Targeting Positioning
cycle. Once the organization decides on
its target market, it strives hard to create
an image of its product & services in the
minds of the consumers.
It is the process of creating space in the
mindset and heart of the customers by
using attractive add campaign.
Positioning helps organizations to create
a image of the products & services in the
minds of target customers.
Example: Raymond's offers wide range of
merchandise for both men and women.

43. Importance of Product Targeting & Positioning
Importance of Targeting
 Speak directly to a defined set of
customers
 Attract and convert valuable leads
 Differentiate our brand from
competitors brand
 Build high level of customer loyalty
 Improve overall aspects of products
and services in order to appeal in
target market.
Importance of Product Positioning
 To make entire organization market-
oriented
 To meet expectation of buyers
 To develop promotional strategy
 To face and beat competition
 To communicate new and varied
featured added in product on the basis of
customer feedback
 To attract different segment of
consumers

44. Significance of STP to the Marketing Strategy
1.
Market
Segme
ntation
2.
Target
Market
Selection
3.
Frame
Product
Positioni
ng
Strategy
4.
Frame
Suitable
Marketi
ng Mix
P
R
O
F
I
T
A
B
I
L
I
T
Y

45. Product Positioning Strategy
Product positioning is a process of presenting the product beneficial attributes to a
particular target of customers.
Product positioning is a key responsibility of marketers. Their close collaboration with
market research and focus groups allows to determine which customers to target based
on favorable feedbacks received by them after the commercialization of product in the
target market.
These research helps in determining marketing efforts and create effective product
information that provides more leads and sales. Effective product positioning
differentiates your product or service from the competitors.
Now a days detailed product positioning is an important part of any marketing plan. It
can be done by using various elements of promotion mix like direct marketing, online
and offline marketing, face to face interaction, publicity through print media etc.

46. Product Positioning Strategies
Competition Strategies
Product benefits strategiesProduct Attributes strategies
Pricing ApproachUsers Approach
Usage Occasions Approach
Product Categories

47. Product Life Cycle- PLC
A product passes through a sequence of
stages starting from INTRODUCTION,
GROWTH, MATURITY, and DECLINE.
These stages are known as product life cycle.
For marketers it is important to understand
the concept of PLC because same marketing
strategies can not be beneficial in all the
product progress stages, hence marketers as
per the situation and response of market keep
on changing their strategies on the basis of
stage in which product lies.
S
A
L
E
S
TIME
Stage 1:
Introduction
Stage 2:
Growth
Stage 3:
Maturity
Stage 4:
Decline

48. Stages of PLC
Introduction Stage – This stage of the
cycle could be the most expensive for a
company launching a new product. The
size of the market for the product is
small, which means sales are low,
although they will be increasing. On the
other hand, the cost of things like
research and development, consumer
testing, and the marketing needed to
launch the product can be very high,
especially if it’s a competitive sector.
Growth Stage – The growth stage is
typically featured by a strong growth in
sales and profits, and because the
company can start to benefit from
economies of scale in production, the
profit margins, as well as the overall
amount of profit, will increase. This
makes it possible for businesses to invest
more money in the promotional activity
to maximize the potential of this growth
stage.

49. Stages of PLC
Maturity Stage – During the maturity
stage, the product is established and the
objective for the producer is to maintain
the market share they have built up. This
is probably the most competitive time for
most products and businesses need to
invest wisely in any marketing they
undertake. They also need to consider any
product modifications or improvements
to the production process which might
give them a competitive advantage by
incurring less cost.
Decline Stage –The market for a product
will start to shrink, and this is what’s
known as the decline stage. This
shrinkage could be due to the market
becoming saturated because the
consumers are switching to a different
type of product. While this decline may
be inevitable, it may still be possible for
companies to make some profit by
switching to less-expensive production
methods and cheaper markets.

50. Examples of PLS Stages
Example of PLS can be understood with the help of Automobile sector (Growth):
Stage 1: Introduction: Petrol and Diesel cars.
Stage 2: Growth : Due to low cost of Diesel , diesel car segment grow at very high rate.
Stage 3: With the Introduction of CNG and environmental issues diesel cars sale
become stagnant. – Maturity Stage
Stage 4: With the introduction of electrical cars, diesel car almost finished from market.