SlideShare una empresa de Scribd logo
1 de 19
Descargar para leer sin conexión
Marketing Management
Course Co-Ordinator:
Ms. Neetu Kushwaha
INTRODUCTION
• Marketing is the action or business of promoting and selling products or
services, including market research and advertising.
• Marketing management is the process of decision making, planning, and
controlling the marketing aspects of a company in terms of the marketing
concept, somewhere within the marketing system.
• According to Philip Kotler, “Marketing Management is the art and science
of choosing target markets and building profitable relationship with them.
Marketing management is a process involving analysis, planning,
implementing and control and it covers goods, services, ideas and the goal is
to produce satisfaction to the parties involved”.
Marketing Management Involves:
1. The setting of marketing goals and objectives,
2. Developing the marketing plan,
3. Organizing the marketing function,
4. Putting the marketing plan into action and
5. Controlling the marketing programme.
Marketing Management is both a science as well as an art. Those responsible for
marketing should have good understanding of the various concepts and practices in
marketing, communication, and analytical skills and ability to maintain effective
relationship with customers, which will enable them to plan and execute marketing
plans.
Continuous practice in the areas of personal selling, sales promotion, advertising, etc.
would enable them to become artists. Scientific and artistic aspects of marketing
would influence each other, leading to a new generation of marketing managers.
i. Focus on customer needs – The needs of the consumer are studied and these become
the basis of all product related activities such as designing, pricing, distribution,
packaging etc.
ii. Providing consumer satisfaction – Every organization aims at providing maximum
consumer satisfaction by understanding his needs and designing an appropriate product.
The success of an organization is directly related to the consumer satisfaction it provides.
iii. Integrated Marketing Management – Marketing management is only a part of the
total managerial functions of an organization such as finance management, production
management, human resources management etc. All these functions are integrated in order
to provide maximum satisfaction to the consumer. Thus all the functional areas of an
organization are integrated.
Marketing Concept
iv. Achieving organizational goals – Modern marketing states that an organization
must aim at maximizing consumer satisfaction and in the process enable itself to
achieve its goals such as growth, market share and reasonable amount of profit or return
on investment.
v. Innovation – Innovation is an important tool to provide consumer satisfaction.
Innovative methods must be used to understand the consumer, design an appropriate
product and offer it to the consumer.
The marketing mix refers to the set of actions,
or tactics, that a company uses to
promote its brand or product in the
market.
The 4Ps make up a typical
marketing mix –
Price, Product, Promotion and Place.
Marketing Mix
Price: refers to the value that is put for a product. It depends on costs
of production, segment targeted, ability of the market to pay, supply -
demand and a host of other direct and indirect factors. There can be
several types of pricing strategies, each tied in with an overall
business plan. Pricing can also be used a demarcation, to differentiate
and enhance the image of a product.
Product: refers to the item actually being sold. The product must
deliver a minimum level of performance; otherwise even the best
work on the other elements of the marketing mix won't do any good.
Place: refers to the point of sale. In every industry, catching the eye of the
consumer and making it easy for her to buy it is the main aim of a good
distribution or 'place' strategy. Retailers pay a premium for the right
location. In fact, the mantra of a successful retail business is 'location,
location, location'.
Promotion: this refers to all the activities undertaken to make the product
or service known to the user and trade. This can include advertising, word
of mouth, press reports, incentives, commissions and awards to the trade.
It can also include consumer schemes, direct marketing, contests and
prizes.
Marketing Management
Once a product has been developed, the first stage is its introduction
stage. In this stage, the product is being released into the market.
When a new product is released, it is often a high-stakes time in the
product's life cycle - although it does not necessarily make or break
the product's eventual success.
During the introduction stage, marketing and promotion are at a high
- and the company often invests the most in promoting the product
and getting it into the hands of consumers.
1. Introduction
It is in this stage that the company is first able to get a sense of how
consumers respond to the product, if they like it and how successful it
may be. However, it is also often a heavy-spending period for the
company with no guarantee that the product will pay for itself through
sales.
Costs are generally very high and there is typically little competition.
The principle goals of the introduction stage are to build demand for the
product and get it into the hands of consumers, hoping to later cash in
on its growing popularity.
2. Growth
By the growth stage, consumers are already taking to the product and increasingly
buying it. The product concept is proven and is becoming more popular - and sales
are increasing.
Other companies become aware of the product and its space in the market, which is
beginning to draw attention and increasingly pull in revenue. If competition for the
product is especially high, the company may still heavily invest in advertising and
promotion of the product to beat out competitors. As a result of the product growing,
the market itself tends to expand. The product in the growth stage is typically tweaked
to improve functions and features.
As the market expands, more competition often drives prices down to make the
specific products competitive. However, sales are usually increasing in volume and
generating revenue. Marketing in this stage is aimed at increasing the product's
market share.
3. Maturity
When a product reaches maturity, its sales tend to slow or even stop - signaling a largely
saturated market. At this point, sales can even start to drop. Pricing at this stage can
tend to get competitive, signaling margin shrinking as prices begin falling due to the
weight of outside pressures like competition or lower demand. Marketing at this point is
targeted at fending off competition, and companies will often develop new or altered
products to reach different market segments.
In this stage, saturation is reached and sales volume is maxed out. Companies often
begin innovating to maintain or increase their market share, changing or developing
their product to meet with new demographics or developing technologies.
4. Decline
Although companies will generally attempt to keep the product alive in the maturity
stage as long as possible, decline for every product is inevitable.
In the decline stage, product sales drop significantly and consumer behavior changes
as there is less demand for the product. The company's product loses more and more
market share, and competition tends to cause sales to deteriorate.
Marketing in the decline stage is often minimal or targeted at already loyal customers,
and prices are reduced.
Eventually, the product will be retired out of the market unless it is able to redesign itself
to remain relevant or in-demand.
PRICING STRATEGY
• Factors Determining pricing:
- Cost
- Demand & Consumer psychology
- Competition
- Profit
- Government Policy
STATEGIES
• Skimming Pricing: Higher the initial, lower the later
• Penetrating Pricing: lower the initial, higher the later
• Differential Pricing (Price Discrimination): Charging different prices for
different units of the same product.
• Predatory Pricing: Price<AVC (Banned in India)
• Dual Pricing
• Peak Load Pricing
• Value Pricing
• Product Line pricing
PRICING METHODS
• Cost Plus/Full Cost Pricing
• Going Rate Method
• Markup Pricing
• Rate of Return Pricing
• Administrated Pricing
Thanking You!!

Más contenido relacionado

La actualidad más candente

La actualidad más candente (17)

Marketing notes
Marketing notesMarketing notes
Marketing notes
 
Marketing management process
Marketing management processMarketing management process
Marketing management process
 
Market opportunity analysis and consumer analysis
Market opportunity analysis and consumer analysisMarket opportunity analysis and consumer analysis
Market opportunity analysis and consumer analysis
 
Marketing Philosophies
Marketing PhilosophiesMarketing Philosophies
Marketing Philosophies
 
Conceptualizing marketing management
Conceptualizing marketing managementConceptualizing marketing management
Conceptualizing marketing management
 
Integrated marketing communication
Integrated marketing communicationIntegrated marketing communication
Integrated marketing communication
 
Markmanchap17
Markmanchap17Markmanchap17
Markmanchap17
 
Developing your marketing mix
Developing your marketing mixDeveloping your marketing mix
Developing your marketing mix
 
Marketing mix and sale promotion
Marketing mix and sale promotionMarketing mix and sale promotion
Marketing mix and sale promotion
 
Unit 1
Unit 1Unit 1
Unit 1
 
Marketing management
Marketing managementMarketing management
Marketing management
 
Marketing managment
Marketing managmentMarketing managment
Marketing managment
 
Unit1 marketing mix promotion
Unit1 marketing mix promotionUnit1 marketing mix promotion
Unit1 marketing mix promotion
 
Introduction to marketing
Introduction to marketingIntroduction to marketing
Introduction to marketing
 
Chapter 1 introduction
Chapter 1 introductionChapter 1 introduction
Chapter 1 introduction
 
Selling and Marketing
Selling and Marketing Selling and Marketing
Selling and Marketing
 
Difference between selling concept and marketing concept
Difference between selling concept and marketing conceptDifference between selling concept and marketing concept
Difference between selling concept and marketing concept
 

Similar a Marketing Management (20)

Marketing Management
Marketing ManagementMarketing Management
Marketing Management
 
UNIT I.docx
UNIT I.docxUNIT I.docx
UNIT I.docx
 
Marketing questions for Interview
Marketing questions for InterviewMarketing questions for Interview
Marketing questions for Interview
 
Report on marketing strategies of Amazon
Report on marketing strategies of AmazonReport on marketing strategies of Amazon
Report on marketing strategies of Amazon
 
Marketing management
Marketing management Marketing management
Marketing management
 
Marketing mix
Marketing mix Marketing mix
Marketing mix
 
The Concept And Process Of Marketing Essay
The Concept And Process Of Marketing EssayThe Concept And Process Of Marketing Essay
The Concept And Process Of Marketing Essay
 
unit 1.pptx
unit 1.pptxunit 1.pptx
unit 1.pptx
 
Notes on Promotion and Distribution Management
Notes on Promotion and Distribution ManagementNotes on Promotion and Distribution Management
Notes on Promotion and Distribution Management
 
Marketing environment
Marketing environmentMarketing environment
Marketing environment
 
Notes of Promotion and Distribution Management
Notes of Promotion and Distribution ManagementNotes of Promotion and Distribution Management
Notes of Promotion and Distribution Management
 
Marketing presentation
Marketing presentationMarketing presentation
Marketing presentation
 
Sales promotion
Sales promotionSales promotion
Sales promotion
 
shailesh martech
shailesh martechshailesh martech
shailesh martech
 
Chapter five
Chapter fiveChapter five
Chapter five
 
The marketing process
The marketing processThe marketing process
The marketing process
 
Unit one (marketing an overview)
Unit one (marketing an overview)Unit one (marketing an overview)
Unit one (marketing an overview)
 
Business research report
Business research reportBusiness research report
Business research report
 
marketing
marketingmarketing
marketing
 
Social Marketing Essay
Social Marketing EssaySocial Marketing Essay
Social Marketing Essay
 

Más de Sri Venkateswara College, University of Delhi

Más de Sri Venkateswara College, University of Delhi (20)

Introduction to Performance Appraisal.pptx
Introduction to Performance Appraisal.pptxIntroduction to Performance Appraisal.pptx
Introduction to Performance Appraisal.pptx
 
PERFORMANCE APPRAISAL.pptx
PERFORMANCE APPRAISAL.pptxPERFORMANCE APPRAISAL.pptx
PERFORMANCE APPRAISAL.pptx
 
Scope of Training.pptx
Scope of Training.pptxScope of Training.pptx
Scope of Training.pptx
 
Classification of contract.pptx
Classification of contract.pptxClassification of contract.pptx
Classification of contract.pptx
 
Training & Development.pptx
Training & Development.pptxTraining & Development.pptx
Training & Development.pptx
 
Human Resource Management
Human Resource ManagementHuman Resource Management
Human Resource Management
 
Financial Management
Financial ManagementFinancial Management
Financial Management
 
Control
ControlControl
Control
 
Leadership
LeadershipLeadership
Leadership
 
Motivation
MotivationMotivation
Motivation
 
Communication
CommunicationCommunication
Communication
 
Centralization & Decentralization
Centralization & DecentralizationCentralization & Decentralization
Centralization & Decentralization
 
Decision making
Decision makingDecision making
Decision making
 
Delegation
DelegationDelegation
Delegation
 
Theory of Henry Fayol & Max Weber
Theory of Henry Fayol & Max WeberTheory of Henry Fayol & Max Weber
Theory of Henry Fayol & Max Weber
 
Management & organization
Management & organizationManagement & organization
Management & organization
 
MNCs
MNCsMNCs
MNCs
 
LLP
LLPLLP
LLP
 
International business
International businessInternational business
International business
 
Forms of organizations
Forms of organizationsForms of organizations
Forms of organizations
 

Último

Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.raviapr7
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.EnglishCEIPdeSigeiro
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxiammrhaywood
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17Celine George
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesCeline George
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxheathfieldcps1
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxAditiChauhan701637
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxEduSkills OECD
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRATanmoy Mishra
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxSaurabhParmar42
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapitolTechU
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxraviapr7
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfTechSoup
 
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxPractical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxKatherine Villaluna
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17Celine George
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17Celine George
 

Último (20)

Finals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quizFinals of Kant get Marx 2.0 : a general politics quiz
Finals of Kant get Marx 2.0 : a general politics quiz
 
Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.Drug Information Services- DIC and Sources.
Drug Information Services- DIC and Sources.
 
Prelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quizPrelims of Kant get Marx 2.0: a general politics quiz
Prelims of Kant get Marx 2.0: a general politics quiz
 
Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.Easter in the USA presentation by Chloe.
Easter in the USA presentation by Chloe.
 
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptxAUDIENCE THEORY -- FANDOM -- JENKINS.pptx
AUDIENCE THEORY -- FANDOM -- JENKINS.pptx
 
How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17How to Show Error_Warning Messages in Odoo 17
How to Show Error_Warning Messages in Odoo 17
 
How to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 SalesHow to Manage Cross-Selling in Odoo 17 Sales
How to Manage Cross-Selling in Odoo 17 Sales
 
The basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptxThe basics of sentences session 10pptx.pptx
The basics of sentences session 10pptx.pptx
 
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdfPersonal Resilience in Project Management 2 - TV Edit 1a.pdf
Personal Resilience in Project Management 2 - TV Edit 1a.pdf
 
In - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptxIn - Vivo and In - Vitro Correlation.pptx
In - Vivo and In - Vitro Correlation.pptx
 
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptxPISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
PISA-VET launch_El Iza Mohamedou_19 March 2024.pptx
 
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRADUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
DUST OF SNOW_BY ROBERT FROST_EDITED BY_ TANMOY MISHRA
 
CAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptxCAULIFLOWER BREEDING 1 Parmar pptx
CAULIFLOWER BREEDING 1 Parmar pptx
 
CapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptxCapTechU Doctoral Presentation -March 2024 slides.pptx
CapTechU Doctoral Presentation -March 2024 slides.pptx
 
Education and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptxEducation and training program in the hospital APR.pptx
Education and training program in the hospital APR.pptx
 
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdfMaximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
Maximizing Impact_ Nonprofit Website Planning, Budgeting, and Design.pdf
 
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptxPractical Research 1: Lesson 8 Writing the Thesis Statement.pptx
Practical Research 1: Lesson 8 Writing the Thesis Statement.pptx
 
How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17How to Add a many2many Relational Field in Odoo 17
How to Add a many2many Relational Field in Odoo 17
 
UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024UKCGE Parental Leave Discussion March 2024
UKCGE Parental Leave Discussion March 2024
 
How to Solve Singleton Error in the Odoo 17
How to Solve Singleton Error in the  Odoo 17How to Solve Singleton Error in the  Odoo 17
How to Solve Singleton Error in the Odoo 17
 

Marketing Management

  • 2. INTRODUCTION • Marketing is the action or business of promoting and selling products or services, including market research and advertising. • Marketing management is the process of decision making, planning, and controlling the marketing aspects of a company in terms of the marketing concept, somewhere within the marketing system. • According to Philip Kotler, “Marketing Management is the art and science of choosing target markets and building profitable relationship with them. Marketing management is a process involving analysis, planning, implementing and control and it covers goods, services, ideas and the goal is to produce satisfaction to the parties involved”.
  • 3. Marketing Management Involves: 1. The setting of marketing goals and objectives, 2. Developing the marketing plan, 3. Organizing the marketing function, 4. Putting the marketing plan into action and 5. Controlling the marketing programme.
  • 4. Marketing Management is both a science as well as an art. Those responsible for marketing should have good understanding of the various concepts and practices in marketing, communication, and analytical skills and ability to maintain effective relationship with customers, which will enable them to plan and execute marketing plans. Continuous practice in the areas of personal selling, sales promotion, advertising, etc. would enable them to become artists. Scientific and artistic aspects of marketing would influence each other, leading to a new generation of marketing managers.
  • 5. i. Focus on customer needs – The needs of the consumer are studied and these become the basis of all product related activities such as designing, pricing, distribution, packaging etc. ii. Providing consumer satisfaction – Every organization aims at providing maximum consumer satisfaction by understanding his needs and designing an appropriate product. The success of an organization is directly related to the consumer satisfaction it provides. iii. Integrated Marketing Management – Marketing management is only a part of the total managerial functions of an organization such as finance management, production management, human resources management etc. All these functions are integrated in order to provide maximum satisfaction to the consumer. Thus all the functional areas of an organization are integrated. Marketing Concept
  • 6. iv. Achieving organizational goals – Modern marketing states that an organization must aim at maximizing consumer satisfaction and in the process enable itself to achieve its goals such as growth, market share and reasonable amount of profit or return on investment. v. Innovation – Innovation is an important tool to provide consumer satisfaction. Innovative methods must be used to understand the consumer, design an appropriate product and offer it to the consumer.
  • 7. The marketing mix refers to the set of actions, or tactics, that a company uses to promote its brand or product in the market. The 4Ps make up a typical marketing mix – Price, Product, Promotion and Place. Marketing Mix
  • 8. Price: refers to the value that is put for a product. It depends on costs of production, segment targeted, ability of the market to pay, supply - demand and a host of other direct and indirect factors. There can be several types of pricing strategies, each tied in with an overall business plan. Pricing can also be used a demarcation, to differentiate and enhance the image of a product. Product: refers to the item actually being sold. The product must deliver a minimum level of performance; otherwise even the best work on the other elements of the marketing mix won't do any good.
  • 9. Place: refers to the point of sale. In every industry, catching the eye of the consumer and making it easy for her to buy it is the main aim of a good distribution or 'place' strategy. Retailers pay a premium for the right location. In fact, the mantra of a successful retail business is 'location, location, location'. Promotion: this refers to all the activities undertaken to make the product or service known to the user and trade. This can include advertising, word of mouth, press reports, incentives, commissions and awards to the trade. It can also include consumer schemes, direct marketing, contests and prizes.
  • 11. Once a product has been developed, the first stage is its introduction stage. In this stage, the product is being released into the market. When a new product is released, it is often a high-stakes time in the product's life cycle - although it does not necessarily make or break the product's eventual success. During the introduction stage, marketing and promotion are at a high - and the company often invests the most in promoting the product and getting it into the hands of consumers. 1. Introduction
  • 12. It is in this stage that the company is first able to get a sense of how consumers respond to the product, if they like it and how successful it may be. However, it is also often a heavy-spending period for the company with no guarantee that the product will pay for itself through sales. Costs are generally very high and there is typically little competition. The principle goals of the introduction stage are to build demand for the product and get it into the hands of consumers, hoping to later cash in on its growing popularity.
  • 13. 2. Growth By the growth stage, consumers are already taking to the product and increasingly buying it. The product concept is proven and is becoming more popular - and sales are increasing. Other companies become aware of the product and its space in the market, which is beginning to draw attention and increasingly pull in revenue. If competition for the product is especially high, the company may still heavily invest in advertising and promotion of the product to beat out competitors. As a result of the product growing, the market itself tends to expand. The product in the growth stage is typically tweaked to improve functions and features. As the market expands, more competition often drives prices down to make the specific products competitive. However, sales are usually increasing in volume and generating revenue. Marketing in this stage is aimed at increasing the product's market share.
  • 14. 3. Maturity When a product reaches maturity, its sales tend to slow or even stop - signaling a largely saturated market. At this point, sales can even start to drop. Pricing at this stage can tend to get competitive, signaling margin shrinking as prices begin falling due to the weight of outside pressures like competition or lower demand. Marketing at this point is targeted at fending off competition, and companies will often develop new or altered products to reach different market segments. In this stage, saturation is reached and sales volume is maxed out. Companies often begin innovating to maintain or increase their market share, changing or developing their product to meet with new demographics or developing technologies.
  • 15. 4. Decline Although companies will generally attempt to keep the product alive in the maturity stage as long as possible, decline for every product is inevitable. In the decline stage, product sales drop significantly and consumer behavior changes as there is less demand for the product. The company's product loses more and more market share, and competition tends to cause sales to deteriorate. Marketing in the decline stage is often minimal or targeted at already loyal customers, and prices are reduced. Eventually, the product will be retired out of the market unless it is able to redesign itself to remain relevant or in-demand.
  • 16. PRICING STRATEGY • Factors Determining pricing: - Cost - Demand & Consumer psychology - Competition - Profit - Government Policy
  • 17. STATEGIES • Skimming Pricing: Higher the initial, lower the later • Penetrating Pricing: lower the initial, higher the later • Differential Pricing (Price Discrimination): Charging different prices for different units of the same product. • Predatory Pricing: Price<AVC (Banned in India) • Dual Pricing • Peak Load Pricing • Value Pricing • Product Line pricing
  • 18. PRICING METHODS • Cost Plus/Full Cost Pricing • Going Rate Method • Markup Pricing • Rate of Return Pricing • Administrated Pricing