Stages of Product Life Cycle
The product life cycle consists of six different stages. These are used by the business owners and the marketing industry to come up with essential decisions and various strategies on the packaging, advertising their budgets, and product prices.
The development stage is the first stage of the product life cycle, and it is the phase that constitutes research before introducing a particular product to the market. Different companies start bringing in investors as they begin testing the products’ effectiveness and looking for strategies for launching the products. The products in the stage are not yet sold as companies tend to use a lot of cash without getting back any revenue. For instance, if a shoe company plans to launch new products, for example, leather sandals, research about the sandals needs to be done first. Investors can afterward be told about the sandal’s idea so that the slippers’ effectiveness can be seen as the marketing strategy is being looked upon
After the product is developed, the introduction stage comes in, and the product is launched to the market. Awareness of the products starts to be built by the market teams so that the products can reach potential customers. The introduction stage is focused on ways of advertising and also marketing their campaigns. When a new product is introduced to the market, for example, sugar cane cocktails, the cocktails have to be advertised on different platforms on social media like Facebook and Instagram to help reach potential customers.
Growth is another phase after the introduction stage, and here we get to find the consumers known the product well, and they have accepted it as they even start to buy the products. The demand for the product begins growing as profits also start to increase. Competitors start chipping in. An example of a growth stage is when, for instance, Samsung company decides to bring in a new series of phones, after the phones have undergone development and introduction stage. The customers now know the importance of the phones as they start using them, and Samsung builds their brand well by expanding their phones and having a proper adverts channel.
Maturity is the next phase, and here the sales start leveling off from the increased growth period. Prices of different products begin to be reduced by the companies to stay competitive among the different upcoming companies. For example, coca-cola has a lot of competition from other companies such as Pepsi. Most of the time, coca-cola company does not increase its prices because many beverage companies are available to replace them.
Saturation is the second last stage, and here the competitors start taking some part of the market, and through that, products don’t experience any growth in sales or any decline. Competing companies in this stage are so many, so the product’s brand is the only one that can come through to avoid going into the decline stage. For example, Nike has built there brand well, and competitors like Fila have not been able to get Nike out of the market.
When a product is not preferred in the market, the decline stage comes in as sales decrease, and consumers start losing interest; for example, the smart tv brand and android tv are preferred in the market compared to the digital tv, which has lost its demand.
Marketing implications for product life cycle
Marketing implications for the introduction stage include a rapid skimming strategy as this consists of introducing the products at a price that is higher and higher promotional expenses. A slow skimming strategy is also involved where the product is launched. Rapid penetration is another implication in the introduction stage, as it includes product launching at a lower price. Slow penetration is the last one, and here products are introduced at lower prices.
The marketing implications for growth-stage include improving the quality of the products and improving the styles of the product as new models are added. Entering the new segment markets, improving distribution networks, increasing product awareness by advertising, reduce the price at the right time to attract customers, lowering costs so that competitors don’t enter the market.
Maturity stage has the following marketing strategies; doing nothing, modifying the market as it helps in an increase of sales, product motivation as it improves the quality of the products, and lastly, marketing mix modification as it includes the change of elements in the marketing mix.
Development stage implications include; the organization moving to a flat structure, entrepreneurs being major forces, cost being secondary matter, customers in the market having a profile that is high and internal governance disappearing.
Lastly, the decline stage has the following implications; continuation of the original product so that the competitors don’t leave the market, continuing the improvement of the products which help in acceleration of sales, and lastly, drop of the product when there is no improvement.
Impacts of the Stages of Marketing Activities.
Selective distribution of the products till the time consumers start accepting the products, low pricing as penetration towards building the market increase rapidly, the establishment of product branding and the level of product’s quality, and obtaining trademarks. Lastly, promotion aiming early adopters and innovators.
How advertising makes Facebook generate revenue
Facebook has different ways in which products are advertised. Self-serve advertising is the first one, and here anyone is allowed to create an advertisement and upload it on the media. The ad always appears on the top side of a page, and this happens for Facebook individuals, events, the user’s profile, and even groups. Facebook advertisement app gives help to those who need to advertise their products to create their own that has target tools to reach the intended audience. An example of this is, for instance, someone needs to create an advertisement about a cloth line. The ad is paid for, and through this, when people are using the Facebook app, the cloth line advertisement pops up at any given time, and money is made through the payment of the ad so that it can pop up.
Targeted advertisements. In this case, Facebook has a sizeable personal data amount which is found on the user base. Often when updating Facebook, there is a tendency to write one’s gender, career, favorite basketball games, and even hobbies. That enables Facebook to sell the space of advertising to different companies, not forgetting the organizations. An example is video games, where most people upload their favorite video games on Facebook. Tools like this Facebook dynamic advertisements can be used to market the whole products to the users based on different income levels, as this improves their chances of making sales. Ads targeted are the significant Facebook revenue generator; for example, the advertisements of football games because Facebook uses it.
Facebook messenger advertisements are another way in which Facebook generates its income. The messenger tool of Facebook usually helps the users have access to each other on a one on one platform. Advertisers are using this as it helps them advertise their products. Messenger audience is usually very vast as it has over two billion users that are engaged there. Facebook has a plan to expand how messages are advertised through the WhatsApp application that it purchased in 2014, which is the widely messaging app used. For instance, if the Mercedes Benz company decides to use WhatsApp to advertise their cars, it can be the best deal for Facebook because of the money that it will generate.
Video advertisements have also played a significant role in helping Facebook to generate its revenue. Facebook live is one of the digital tools that allow the users to connect through video as this has made even the grandparents start checking in on their children and the grandkids who are miles away. People can reconnect again, even with old friends. When Facebook video views keep increasing, advertisers can reach Facebook users through Facebook live. For example, the other day, when I was video calling my friend, I saw several advertisements pop up.
The Facebook mobile application created a lot of income; for instance, in 2016, the app generated 83% of the advertisement revenue. It made Facebook mobile the most important digital tool in making money. While Facebook is on the look of exploring upcoming advertising platforms, Facebook mobile will be responsible for carrying the burden of the company because mobile advertising grows gradually on every annual basis.
How Data Collection Makes Facebook Generate Its Revenue
Flashback is one of the ways data collection has generated revenue for Facebook. After Facebook had the 10th anniversary, it came up with an option where the viewers could view and share videos that compromise photos of someone, the posts among the pictures that had a lot of likes, and the ones with a lot of comments. So many videos have been created since then, and an example of then is the ones that include celebrating of friend’s anniversary and that one of two different people becoming friends on Facebook, not forgetting the exclusive happy birthday video.
Facebook came up with a special sticker as the sticker had the I voted name on it. The experiment became successful in 2010 during the mid-term elections. For example, users on Facebook use the I voted logo when their friends participate in the process and tag them.
Topic data is among the Facebook technologies that show marketers how the audience responds to their brands, subjects, events, and activities. It helps in keeping private personal information. The information generated from topic data is used by the marketers to change the market platforms and channels.
The celebration of pride is lastly one of the considerable ways that Facebook is using to generate income. A constitutional right made by the supreme court about the same-sex marriage to be a right in the constitution Facebook turned the opportunity by making rainbow spectacle with by the name celebrate pride as a way of showing support and equality. The transformation of profile pictures on Facebook is simple to the colored ones.
How to collect Face to Face Research Market Data
Literature sources help in the face to face collection of research data as this entails the collecting of data from the texts that have already been published in public platforms. Examples of the sources used include magazines, journals, articles, textbooks, and many others. The method is called secondary data collection. When comparing secondary data collection to the primary one, it has an advantage because it is not time-consuming and expensive.
Surveys are the following method that helps in gathering information to assist in research. Gathering of information is done using questionnaires where individuals or groups give out their experience in conjunction with a specific phenomenon. Examples on how to collect data using the printed surveys include
Interviews also help in a face to face data collection, and in this case, there has to be an engagement of two or more parties about a particular study. The respondents are the ones that are interviewed to get responses from those that are asked questions. For example, when one is called for a job interview, questions are asked to determine whether there is qualification.
Observation is another face-to-face method of data collection, and in this case, the participants are monitored in a specific environment. The behavior of the participants is observed in this case. Observation includes controlled and natural. In the controlled one, a standardized procedure is used while in the natural one, participants get to be observed in natural ways.
Documents and records are the other faces to face way of conducting interviews, and here the existing materials are examined and recorded as this can help in the tracking of organizational changes. Examples of tracing the records are the examination of the emails, minutes of meetings, and even call logs.
Experiments in the last example of face to face to face interview and this case relationship between two different variables are taken into consideration.Then depend variables are brought up, not forgetting the independent ones.
How to collect Online Research Market Data
Internet is a method used in collecting online data, and in this case, several research questions can be brought about through the Internet.
Online interviews are one of the most popular ways of collecting the data, and in this case, the conversation can be made through the email exchange or other chat forums like WhatsApp. Online interviewing is more cost-effective compared to meeting people in the offices.
The Internet has led to a rise in different forms of communication where home pages are made and also blogs. The various sources have different ways of expressing views, as this gives an insight that leads to people’s personal lives.
Online observation is another way of collecting data where one uses the social media platform to collect data about a specific topic.
Surveys can also be done online, and in this case, web design questionnaires can be brought up where one uses a computer to answer the questions.
Comparison of the strengths of face to face market research and online market research
Mitigation risk is one of the strengths of market research. When viewing it from the context of face to face interviews, insights are provided where you visit the market and get to see the available opportunities. For example, when visiting the market, the customers can be asked what is missing and what they want to consider. Online market research in this context is necessary because of the different perceptions that people have in the comment sector about a particular product.
Improvement in sales is excellent because research done in the markets gives a hand in developing the products.sales have an advantage in face-to-face research. The customer’s needs can be attained in the market; for example, a customer can ask you to start selling new brands of let’s say trousers as this can help improve sales. On the online marketing, it is advantageous where the products can be advertised online for example in Facebook, Instagram or youtube as this helps
improve sales.
Comparison of the weaknesses of face to face market research and online market research
Market research may take a lot of time, and in this case, if the right questions are not appropriately asked, then time is needed. An example in the face to face research is where people in the market are not willing to speak up so that time can be saved, and a model in online interviewing is where a person gets to reply to a question after even a week.
Market research is most cases targets a small population and, in this case, requesting them to feel questionnaires can be hard. For example, in face-to-face interviews, one can’t go to the market and ask the people to start filling because many may refuse. It is also hard; for example, people can give out excuses like not having data to fill the online questionnaires.