International Marketing MixesEssay Preview: International Marketing MixesReport this essay307 – The Application of MarketingPART A – The Tools of MarketingTask TwoUsing examples, describe the FOUR stages of the product Life Cycle. What are the main problems facing any product in the maturity stage, and how can they be addressed?
Introduction StageWhen the product is introduced, sales will be low until customers become aware of the product and its benefits such as Microsoft Windows 95. Microsoft announces their product before it is introduced, but such announcements also alert competitors and removes the element of surprise. During the introduction stage, the primary goal is to establish a market and build primary demand for the product class. The following are some of the marketing mix implications of the introduction stage:
Product – one or few products, relatively undifferentiatedPrice – Generally high. In some cases a penetration pricing strategy is used and introductory prices are set low to gain market share rapidly.Distribution – Distribution is selective and scattered as the firm commences implementation of the distribution plan.Promotion – Promotion is aimed at building brand awareness.Growth StageThe 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. The marketing team may expand the distribution at this point. When competitors enter the market, often during the later part of the growth stage, there may be price competition and/or increased promotional costs in order to convince consumers that the firms product is better than that of the competition. During the growth stage, the goal is to gain consumer preference and increase sales. The marketing mix may be modified as follows:
Product – New product features and packaging options; improvement of product quality.Price – Maintained at a high level if demand is high, or reduced to capture additional customers.Distribution – Distribution becomes more intensive.Promotion – Increased advertising to build brand preference.Maturity StageThe maturity stage is the most profitable. While sales continue to increase into this stage, they do so at a slower pace. Because brand awareness is strong, advertising expenditures will be reduced. The competing products may be very similar at this point, increasing the difficulty of differentiating the product. During the maturity stage, the primary goal is to maintain market share and extend the
Brand and #8211; New product features and packaging options; improvement of product quality.Price – Maintained at a high level if demand is high, or reduced to capture additional customers.Description StageThe description stage is the most profitable. A lot can happen after the completion of the maturity stage, but there is no end in sight. Once an initial investment in the brand reaches all levels of value, an initial phase of marketing may begin, with higher prices being the dominant factor. During the description stage, sales growth is sustained until there is significant support from a majority of investors. A high level of sales support allows sales to build quickly and lead into long term success.After that, some of our goals come to a standstill, leaving the opportunity for growth. There is no other market in sight, no real way to keep up, and we need someone with a strong portfolio of products that can be a part of our success.
Name: Hometown and/or City: Austin
Founded in 1990 in Texas; currently operates 3 different businesses in Austin. The Austin franchise is located in the 1st Floor, which is a short walk from City Hall. With a view to becoming profitable within our current footprint, we continue to operate the Austin Franchisee Operations Center for the past 9 years. Additional business, including distribution, is also being planned to expand to other parts of the city.
“This mission of “Sustainable Growth” is the cornerstone of our brand and I have been personally involved to ensure the success of this mission for many years. The growth of our business represents the highest priority for us. I have worked with top leaders in marketing and sales, such as our Director of Corporate Brand Development at Microsoft, who is currently in charge of our company,”
Since we launched Hometown in 1995 with our very first team, growth has been great. All of our leaders have proven to be a force to be reckoned with and we are pleased to see our growth continue.
“Now our vision is being articulated in this way: I expect us to build a strong future with our people, we expect us to be creative and be innovative, and we do expect them to have a positive impact on our business as well as our community. As investors, we believe we can build a strong brand that we can follow if you can share our vision and the opportunity.
As our world continues to evolve with technology and the proliferation of new technologies, there is more competition, and our business remains the envy of the world.