CH6

Question 1

What is a prduct life cycle and the characteristics of the stages

Answer 1

5 distincy stages that a product goes through over it’s life span

• product development
  1. Introduction - newly introduced
  2. Growth - when widely accepted
  3. Maturity - sales growth slows down
  4. Decline - decrease in sales and profit

Question 2

Marketing mix strategies on 1.introduction of PLC stage

Answer 2

1. Build brand awareness
2. Get customers to try the products

product: basic due to the lower customer acceptance
Price: need to consider huge promotion cost into account
Place: small number of channel members
Promotion: rely heavily on promotion and advertisements

Question 3

Marketing mix strategies in growth and development and it’s aim

Answer 3

1. Aim to maximize market share before the entry of competitors

product: upgrade quality ( add warranty ), add new products or features which can deliver more satisfaction
price: more aggressive pricing ( lower)
place: more channel members
promotion: rely on advertising less on sales promotion

Question 4

Marketing mix strategy for maturity

Answer 4

1. Protect current market share and
2. Maximize short term profits

product: differenciate products by adding new features and models
price: set similar or more attractive price than competitors
place: continue intensive distribution
promotion: more differenciation and get customers from competitors

Question 5

Marketing mix for decline

Answer 5

1. Reduce unnecessary expenditure and try earn as much profit as possible

product: phase out less popular models and only focus on popular ones
price: cut prices to stimulate purchases
place: phase out unprofitable channel members
promotion: reduce budget and focus on loyal customers

Question 6

Characteristic of different services that effect marketing practices and how to deal with them

Answer 6

Intangibility
- cannot be seen, tasted, smelt before purchace
–> can provide evidence like qualifications

Inseparability
- product and service at the same time
–> enhance work efficiency by using digital menu, shift demand, hire more service providers

Variability
- depends on who, when, how provides the service
–> provide training, monitor satisfaction or complaint, standardize service delivery process

Perishability
- cannot be stored for later use

Question 7

How can mareters deal with perishability from deman side and supply side

Answer 7

Demand:
- set higher prices during peak hours
- establish the resevation system
- provide complimentary services ( resting area and waiting area)

supply:
- hire part-time employees
- use limited manpower efficiently by only performing core tasks during peak hours
- increase ecustomer participation ( machine system )
- more facilities for expansion

Question 8

Characteristics of e-marketing ( marketing mix )

Answer 8

Product: customization, costomization, and facilitate purchase of product in digital
Price: transparent prices, more readily reflected by demand ( can bid)
Place: no physical stores, transactions 24/7
Promotion: can use inexpensive means such as websites, online, advertisements, social media, email