36. Product Life cycle (plc). Different marketing aims and tools on the different stages of plc

a. Introduction Stage:

This stage refers to the period when the product is introduced in the market. The main objective during the introduction stage is to generate demand for the introduced product or service and establish a market for its operations.

b. Growth Stage:

During this stage more customers become responsive of the product and its attributes. The main objective during the growth stage is to further boost the demand for the product by gaining consumer inclination and further increase the sales.

c. Maturity Stage:

During this stage sales continue to increase although at a slower pace. The main objective during the maturity stage is to sustain market share and broaden the product life cycle. The competition during this stage is highly rigorous as the competing products may be highly similar at this point, thereby increasing the complexity of differentiating the product.

d. Decline Stage:

This stage witnesses a decline in the sales as the market becomes saturated. In such a scenario a firm can either:

Retain the product at reduced costs and try to innovate with respect to product uses.

Withdraw the product from the market when no more profit can be generated.

The product life cycle concept is useful for monitoring sales results over time and comparing them to those of products having a similar life cycle and therefore helps marketing managers to plan future marketing strategies to deal with the challenges.

37. The process of Consumer Purchase decision. Cognitive dissonance, and Marketing strategy for its minimization

Buyer decision processes are the decision making processes undertaken by consumers in regard to a potential market transaction before, during, and after the purchase of a product or service. Steps:

1. Problem recognition;

2. Information Search

3. Evaluation of Alternative

4. Purchase decision

5. Purchase

6. Post-purchase behavior/buyer's remorse (cognitive dissonance)

Cognitive dissonance is an uncomfortable feeling caused by holding two contradictory ideas simultaneously. The theory of cognitive dissonance proposes that people have a motivational drive to reduce dissonance by changing their attitudes, beliefs, and behaviors, or by justifying or rationalizing them.It is one of the most influential and extensively studied theories in social psychology. This can be reduced by warranties, after sales communication etc.

38. Marketing matrix (bcg, Ansof’s, Porter’s competitive matrix)

BCG matrix (Boston Consulting Group):

portfolio analysis

Ansoff matrix: tool that helps businesses decide their product and market growth strategy.

P orter’s competitive matrix

39. Personal selling. Methods of personal selling effectiveness evaluation

Personal selling involves the two-way flow of communication between a buyer and seller, often in a face-to-face encounter, designed to influence a person’s or group’s purchase decision.

Personal selling process:

1. Prospecting – searching for and qualifying prospects

2. Preapproach – gathering information and deciding how to approach the prospect

3. Approach – gaining prospect’s attention, stimulating interest, and making transition to the presentation

4. Presentation – beginning converting a prospect into a customer by creating a desire for the product or service

5. Close – obtaining a purchase commitment from the prospect and creating a customer

6. Follow-up – ensuring that the customer is satisfied with the product or service