BUSINESS MANAGEMENT NOTES

I. Product Life Cycle

a.) Incubation StageThis stage is also the product development stage. Wherein changes in the Marketing Mix ( Target Market, Price, Product, Promotional Strategy, and Place) may happen. In this stage there is no sale or income. Also, the firm prepares to introduce the product to a specific target market.

b.) Introduction StageIn this stage, firms introduce their products in the market. Firms during this stage may have low incomes; because, their product is not yet fully known by the consumers. In order to combat this, Firms pay a huge sum of money to advertise their products. In that way, the benefits of using their product can be known to the public. Some firms introduce their product even before they release it in the market. This is somehow a treat to them for competitors may try to imitate their product especially when a lot of benefits can be derived from using the product.c.) Growth StageThis stage is marked by rapid cash flow. This rapid growth is because of the fact that consumers are now fully aware of the product and its benefits. With that, demand for such product will increase and will imply more supply and in turn, more income. Also in this stage, the marketing team may target new market segments. With targeting new market segments, product improvement may be at hand. Competitors may enter the market, producing a similar type of product with a lower price. With this, competition may be at peak.

d.) Maturity StageThis stage is the most profitable stage. For, the product is now fully established and may now be considered as a Brand. Competition is heightened and competitors are producing a product that is closely the same as anothers product. Firms also put much effort into convincing non-users of the product or users of other similar products to start using the others product. Sales promotions are a common event during this stage. Sales promotions are a common happening during this stage. This is primarily done for the sole purpose of encouraging Non- users or supporters of other brands to buy product from a different seller.

e.) Decline StageIn the end the product MAY suffer decline in sales primarily because of the two reasons:1) Change in taste of consumers2) Product may become technologically obsolete ( That is new and more advanced products becomes available in the market, that offers basically the same use as the other.) Sales may still be maintained for a longer period of time;If customers develop a brand loyalty.

II. Types of Consumer ProductsConvenience: Goods purchased on a daily basis or purchased frequently. Appeals to a huge market segment and is sold at a relatively lower price compared to other products. With that, marketers tend to see little profit from it per unit sold. Eg: Soap, Food, Water, and Personal Care products. Shopping: Goods that consumers purchase less frequently; these goods are sold at a much higher price compared to convenience goods. With that, they have a relatively smaller target market. And, consumers tend to spend more time locating these products for the psychological effects it can give to a consumer. Examples of such may be perceived higher social class and the like.Eg: Electronic items such as iPads, Branded Clothes, and Personal Services such as Spas or facials. Emergency: Goods that are purchased due to sudden events. Oftentimes, Pre- Purchases are not considered. Or goods that solve a current problem. Eg: Medicines, Light bulbsUnsought: Goods whose purchase is unplanned. This unplanned purchase maybe because of the marketers action to entice customers to buys a specific product.

III. Successful Marketing StrategiesDefining your Product/ Service: It is a must to know what your customers need and want and from there adjusting your product to meet their needs or wants. This would result into a loyalty between the buyer and seller.Identifying your Target Market: There is a need to pin point the exact type of people, who could be potential customers. Frankly, anyone can be potential customers, but marketing to all types of customers may be costly. Marketing a product that is tailored for a specific target market can help make a product known and credible.Knowing your Competition: Knowing your competition can help you in designing and improving your product so as to ensure that your product will have all the features that your other competitors have. Also, it can help you out smart your competition when it comes to releasing a product. You can release a product that has features absent in their products. Making your product a sure fire hit. Finding a Niche: Finding a niche can help you dominate a market. It helps by allowing yout to focus on a market segment that is not properly served.Developing awareness: Generally, people dont really remember a product until it is exposed to them 5-15 times or more. With that, there is a need to work on advertising your product to make it more known in the market.Building Credibility: With knowing comes loving, Customers should also love your product and also they should also give positive feedbacks about it: Feedbacks such as Quality product and the like is important to boost awareness and will also result into increasing sales. Being Consistent: Consistency in everything is a must in order to maintain good customer-buyer relationship. Without consistency in doing business, customers might feel the need to switch loyalties and will result into losing salesEg: A customer is loyal to a restaurant. After several years, the quality of food and the courtesy of the crew is degrading and resulted into switching restaurants as a preference. Maintaining Focus: with being focused in whatever you do, Utilization and optimization can be at hand. Focus allows one to fully utilize scarce resources to yield maximum output without increasing the cost of production. Resulting into lower prices and more profit.

IV. Product Development & DistributionProduct development is tagged as the process of designing, creating, and marketing new products or services directed to benefit customers. May also be called New Product DevelopmentThis process is focussed on developing systematic methods for guiding all the processes involved in getting a new product to a market. IMPORTANCE: Helps customers get a product that is advance yet beneficial. Also, Helps firms adapt to the changing needs to their customers and also to improve their product so as to be technologically updated.

Distribution is the process of making a product or service available for use or consumption by a consumer or business user using direct means or indirect means with intermediaries Intermediaries: go between Serves as a conduit for goods/services offered. Distribution may also be referred to as Place