Dimensions of Marketing

Dimensions of Marketing Strategy

Marketing activities are heavily dependent on the stage in the product life cycle. Products do not last forever. A typical cycle for a product of the ones described below is as follows: first a product will be developed; the prototype will be tested and market research carried out before it is launched onto the market; there will be no sales at this time; once evaluated it is sold directly or indirectly to consumers.

Product 1 (Work): Computer – manufacturer to consumer

The product that I use everyday at work is the computer. The computer is in the Maturity stage of the product life cycle. The Maturity Stage is, perhaps, the most common stage for all markets. It is in this stage that competition is most intense as companies fight to maintain their market share. Here, both marketing and finance become key activities. Marketing spend has to be monitored carefully, since any significant moves are likely to be copied by competitors. The Maturity Stage is the time when most profit is earned by the market as a whole. Any expenditure on research and development is likely to be restricted to product modification and improvement and perhaps to improve production efficiency and quality. The computer phone may be bought directly from the manufacturer, either over the telephone, direct mail, or the Internet, or through several kinds of retailers, including independent computer stores, franchised computer stores, and department stores. In addition, large and small businesses may make their purchases through other outlets.

The impact on the marketing mix is as follows: Product features may be enhanced to differentiate the computer from that of competitors; Price competitive pricing or promotional pricing is used and there are a lot of price wars; Distribution becomes more intensive and incentives may be offered to encourage preference over competing products; Promotion emphasizes product differentiation. A lot of persuasive advertising...