2.2.6 & 2.2.7 & 2.2.8 Pre-learning (Life Cycle, Customers, Tech)

​Product Life Cycle, Customer Relations, & Technology

By Adele Wyers

Marketing objectives, strategies, and approaches will change depending on where a product is in its life cycle.

​

​The Product Life Cycle

• Product is designed and launched into the market

• Product is unknown

• Sales may be low due to consumers lack of familiarity with the product/business

​

​Introdution

• This is where the effects of marketing are seen

• Consumers are more familiar with product

• Sales start to grow and profits rise

​

Growth

• Product is well established

• Sales have stabilised

• At some point, demand may start to decline

• Does not yet need to be replaced

• Need to use extension strategies like relaunching with new packaging

​

Maturity

• Sales decline as the product is out of date and/or being replaced

• Competitors more popular

• Need extension strategies or to reboot the cycle

• Otherwise, the product is retired and replaced

​

Decline

• Product life style is related to pricing strategy

• Also the number of places sales can be made based on popularity

• And promotion strategies will also change

• Please read the table before moving on

​

Product Life Cycle & Pricing Strategies

Reorder

Reorder the following stages of the product life cycle.

• New product or model is introduced to the market

• Sales are now increasing

• Sales reach their peak

• Sales start to reduce

1

2

3

4

• 1
• 2
• 3
• 4

Multiple Choice

Which of the following is not a stage of the product life cycle?

• Extension

• Maturity

• Growth

• Infancy

Multiple Choice

What phase of the cycle is this:

The business tries to build awareness, which means customers start to know things about the good/service, such as its features.

• Introduction

• Maturity

• Growth

• Extension

Multiple Choice

During or towards the maturity phase, if there is too much downturn in sales, a business may delete it rather than spending money on marketing.

• False

• True

Match

Match the following marketing strategies to the correct stages.

• Introduction Stage

• Growth Stage

• Maturity Stage

• Decline Stage

Penetration pricing/free samples

Persuasive advertising/sales promotions

Competitive pricing/extension strategies

Discounts/price reductions/no promotion

• Penetration pricing/free samples

• Persuasive advertising/sales promotions

• Competitive pricing/extension strategies

• Discounts/price reductions/no promotion

​This terms refers to business activities that aim to acquire, grow, and retain good relationships with customers. This helps increase customer loyalty and brand reputation.

​​Customer Relations

​Exellent customer service creates opportunities for word-of-mouth recommendations and competitive advantage by help customers feel valued.

​​Customer Service

Loyalty programs can make special offers to promote spending and create repeat spenders, but also to collect valuable data for later marketing purposes.

Loyalty Programs

Multiple Choice

Positive customer relations encourages loyalty and __________.

• Repeat Business
• Opportunity
• People
• Productivity
• Proactive

Multiple Choice

When customers feel _____ towards a business, they will support it.

• loyalty

• disappointment

• satisfaction

• expectation

• 5.42 billion people use social media

• 96% of businesses use it for advertising

• Used for customer service too

• Essential for brand visibility and engagement with customers

• Also can be less expensive marketing option

Technology - Social Media

• Form of direct marketing to consumers

• Used to constantly remind consumers about the brand

• Also offers loyalty program like features

• Can increase engagement (or annoy)

• Be careful to follow the law and keep data safe

​​Technology - Email Marketing

Dropdown

Social media is great at developing

Select answer

, while email marketing is a more ​

Select answer

strategy.

• Search engine optimisation uses data to improve website design

• Goal is to increase viewership of the website: you want to be the first page shown in a Google search

• How will this be affected by AI if 60-80% of searchs result in 'no clicks'?

Technology - SEO and AI

• Marketing requires data to be collected

• Raw data is then analysed to draw conclusions and make predictions

• Can use software/AI to help gain insights, examine customer interactions

• Also used to identify most successful marketing strategies and methods

​​Technology - AI and Data

Open Ended

This is now the end of 2.2.6 - 2.2.8 (Chapter 12.2-4). To avoid the forgetting curve, you need to do a brain dump of everything you have learnt so far about the product life cycle, customer relations, and technology in marketing.