Growth final
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This document provides information about managing business growth and the product lifecycle. It includes: 1. An overview of Abdul Rashed Barakzai's education and contact information. 2. A definition of business growth as improving a business's success by boosting revenue or profitability. 3. An introduction to the concept of product lifecycles, which describe the typical stages of introduction, growth, maturity, and decline that products experience over time. 4. Details on marketing strategies for each stage of the product lifecycle, such as emphasizing awareness in introduction and maximizing market share in growth.
Growth final
- 1. MANAGING GROWTH ABDUL RASHED BARAKZAI +93 799310664
- 2. Switch Your Mobile to Vibration or Turn it off
- 3. EDUCATION BACKGROUND Master of Business Administration – MBA Bachelor of Business Administration – BBA Bachelor of Information Technology – BIT Microsoft Certified Professional - MCP
- 4. BUSINESS GROWTH The process of improving some measure of an enterprise's success. Business growth can be achieved either by boosting the top line or revenue of the business with greater product sales or service income, or by increasing the bottom line or profitability of the operation by minimizing costs.
- 5. MARKETING MANAGEMENT • The art and science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value.
- 6. PRODUCT POSITIONING Positioning is the process of drawing or setting visualized image of your product in the mind of customer. Positioning will also differentiate your product among competitors in market..
- 7. REMEMBER Positioning your product against your competitors (Shape, Style, Packaging, Design) Emphasizing a distinctive unique benefit ( Low Price, High Quality) Affiliating your product with something the customer knows and values ( iPhone, Laptop)
- 8. CONTINUE POSITIONING… Your positioning statement reflects what you need to communicate about a specific product, and to whom, so you will always hit the right button, communicating the right message to the right customer at the right time. Examples of Positioning strategy: Your customer: The type of customer you target. The benefits: What you can do for your customers. The method: How you do it. The USP (Unique selling proposition): Why you do it better than the competitors.
- 9. PRODUCT LIFE CYCLE Time Product Develop- ment Introduction Profits Sales Growth Maturity Decline Losses/ Investments ($) Sales and Profits ($)
- 10. INTRODUCTION STAGE OF THE PLC Sales Low Seles Cost Low Seles Profit Negative/ Less Market Objective Product Awareness
- 11. INTRODUCTION STAGE OF THE PLC Marketing Strategies: Introduction Stage Sales growth tends to be slow at this stage because it takes time to roll out a new product and fill dealer pipelines. Costs are high per customer as customers are not that much in introduction stage, and promotional expenditures are at their highest ratio to sales. Profits are negative or low in the introduction stage. The companies must plan before introducing new product to the market. To be first can be highly rewarding but risky as well.
- 12. GROWTH STAGE OF THE PLC Sales Rapidly Rising Cost Average Cost Profit Rising Marketing Objective Maximum Market share
- 13. GROWTH STAGE OF THE PLC The growth stage is marked by a rapid climb in sales and profits. Early adopter and additional consumers start buying it. Profits increase during this stage as promotion costs are spread over a large volume. Attractive stage for competitors. Prices remain where they are or fall slightly, depending on how fast demand increase. Average cost per customer: customers increase so cost is equally divided by them.
- 14. MARKETING STRATEGIES FOR THE GROWTH STAGE • During this stage, the firm uses several strategies to sustain rapid market growth • It improves product quality and add new product feature and improved styling • It adds new models, product of different sizes, flavors • It enters new market segments • It increases its distribution coverage and enters new distribution channels • It lower prices to attract the next layer of price-sensitive buyers
- 15. STRATEGIES USES IN GROWTH LEVEL OF PLC 1- Intensive Growth Strategies: it is a strategies that take advantage of an opportunity within a current market, using market penetration, market development, and product development. • Simple: when a company wants to increase the sales to its target. 2- Integrative growth strategies: when company produce different or same other product 3- Diversification strategies: When company product total different product. Enter to New Market
- 16. MATURITY STAGE OF THE PLC Sales Peak Cost Low cost Profit High Marketing Objective Maximum Profit
- 17. MARKETING STRATEGIES MATURITY STAGE The Maturity stage divides into three phases 1. Growth: Highest Rate of Growth Possibility of decline. 2. Stable: Highest Sales and stability depend on company to maintain. The company should adopt innovative culture.
- 18. MARKETING STRATEGIES FOR THE MATURITY STAGE Market modification. The company might try to expand the market for its mature brand. • For example: Johnson and Johnson successfully promoted its baby shampoo to adult users • Volume can also be increased by convincing current users to increase their brand usage; • For example: Safe Guard and life boy Gold convincing their users to wash hands frequently. • Product modification: Managers also try to increase sales by modifying the product’s characteristics through quality improvement, feature improvement, or style improvement. • For example: iPhone 4, Now iPhone X Capacity 64 GB.
- 19. DECLINE STAGE OF THE PLC Sales Decrease Cost May Increase Profit Decrease Marketing Objective Alternative product
- 20. MARKETING STRATEGIES FOR THE DECLINE STAGE Sales decline for a number reasons • Technology advances • Shift in consumer tastes • Increase domestic and foreign competition. Some firm withdraw from market Some may cut their promotional budgets and reduce prices further.
- 21. MARKETING STRATEGIES DECLINING STAGE The Decline stage divides into three phases 1. Growth: the sales growth rate starts to decline. There are no new distribution channels to fill. 2. Stable: Sales flatten on a per capita (per person) basis because of market capacy. Most consumers have tried the product. 3. Decaying maturity: the absolute level of sales starts decline, and customer begin switching to other products. The company should adopt innovative culture.
- 22. MARKETING STRATEGIES FOR THE DECLINE STAGE product managers might also try to increase sales by modifying other marketing mix element: • Price: would a price cut attract new buyers? Decrease the price or give discounts on volume. • Distribution: can the company introduce the product into new distribution channels? • Advertising: Should advertising expenditures be increased? Should the timing or size of ads be changed? • Sales promotion: Should the company step up sales promotion? • Services: Can the company speed up delivery? Can it extend more technical assistance to customers?
- 23. THREAT FOR GROWTH Industry Competition Threat of New entry Buyers power Threat of substitutes Suppliers power
- 24. ASSIGNMENT • What is the Product or Service? • What are the Benefit of Your product to Customer and Society? • What is the Target Customers and Market? • Our product is better than the competitors in the following manner: • We can prove our product is the best because (evidence, differences, testimonials..etc).
- 25. Thank You
Editor's Notes
- #4: Type of Business, Number of people working with you
- #10: The Product Life-Cycle This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293. Instructor’s Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.
- #11: Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
- #13: Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
- #16: Market Penetration: says an attempt to increase sales in a business’s current market market development : an attempt by a business to reach new locations for its products
- #17: Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
- #18: Decaying means decomposing
- #19: Noor jahan
- #20: Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
- #22: Decaying means decomposing