Transcript chapter4B

Introduction to
Business English
Chapter 4
Marketing
Chapter 4 (B)
The Product Life Cycle
Understanding Buyer Behaviour
Marketing Research & Segmentation
The Product Life Cycle
---Products develop through four stages in the life cycle.
---Studying PLC is very important to marketing. When exploring what
mix is best suited to your product, first you should consider where
in the life cycle you products lie.
---Products progress through its life cycle, changes in the marketing
mix usually are required to adjust to evolving challenges and
opportunities.
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The Product Life Cycle
Introduction Phrase
Features: brand-new products or service
a baby in the market
low consumer awareness, low sales, no competitors
Examples: iris-based personal identify card 虹膜个人识别卡
third-generation mobile phone 天翼3G, I Pad 2
Marketing ★ low consumer/product awareness →low sales
Strategies: → mass advertising to build brand awareness
like ads, free samples, premiums, trial incentives
★ no competitors→high profit margin
→skim pricing → to recoup costs quickly
→ penetration pricing→to gain market share rapidly
Goal:
to increase customer awareness,
to get a foothold in the market
to build primary demand
Conclusion: high costs + low sales → negative profits
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The Product Life Cycle
Growth Phrase
Features:
sales increase rapidly
customer awareness, target market
competition emerging
Examples: I Phone 4, I Touch
Marketing improve product quality, package
Strategies: high demand→ high price
attract additional customer →reducing price
increasing ads → to build brand preference
Goal:
to gain customer’s preference
to increase sales
Conclusion: increasing awareness + increasing sales
↓
increasing profits
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The Product Life Cycle
Maturity Phrase
Features:
sales increase at a lower pace
strong brand awareness,
fierce competition
Examples: Personal computer, Credit cards,
mature brands, like Nike, Ochirly, Belle etc.
Marketing to differentiate your products,
Strategies: to reduce price to avoid a price war,
to maintain high price for high quality
to build brand loyalty
Goal:
to maintain market share, to extend PLC
to attract competitors’s customer
Conclusion: fierce competition+ fulfilled market
↓
profit reducing
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The Product Life Cycle
Decline Phrase
Features:
losing its appeal, sales drop,
low profit margin
Examples: mp3, old style mobile phone, desktop computer
Marketing enough is enough, clear the stock
Strategies: rejuvenate product
money-off promotion一元购手机，手机送父母等
invest and develop new products
Goal:
to reduce loses & to develop new one
Conclusion: low sales+ few competitors
↓
being obsolete, die out
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The Product Life Cycle
Attention: Decision for different PLC in different corporation
不同企业在不同产品周期的决策
---some may enter the market from introduction stage,
---some may …from growth stage,
---important thing is that you should find the most suitable time to get
the products into the market
---Not all the enterprises have the ability and funds to start the PLC at
the first stage.
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Understanding Buyer Behaviour
Understanding buyer behaviour helps firms bring about satisfying exchanges to
meet their needs and wants.
The Consumer Buying Process
Demand Passive demand：ads, display
Active demand
↓
Intention
↓
Price
Search/Selection Publicity, eg:江中健胃消食片
Quality
↓
Brand
← Evaluation/Comparison
Fashion
↓
After-sales service Purchase decision
↓
After-purchase evaluation Cognitive dissonance
认知不协调
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Understanding Buyer Behaviour
Factors affecting buying decision:
☆Social factor:
☆Psychological factor:
☆Demographic factor:
☆Situational factor:
Industrial Buying Behavior:
---larger and less frequent
---quality and service
---seek more information
---decision more reasonable, considerable
☆Buying Center
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Plant Location
Marketing
Research
☆ Definition
☆ Proactive & Reactive research
☆ The Research Process
1.Forming the research question
2.Research design
3.Data collection
4.Data analysis
5.Choosing the best solution
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Plant Location
Marketing
Segmentation
☆ Definition
市场细分美国市场学家温德尔·史密斯(Wendell R.Smith)于20世纪50年代中期
提出来的。
市场细分是指营销者通过市场调研，依据消费者的需要和欲望、购买行为和
购买习惯等方面的差异，把某一产品的市场整体划分为若干消费者群的市场
分类过程。每一个消费者群就是一个细分市场，每一个细分市场都是具有类
似需求倾向的消费者构成的群体。
☆ The Need for Market Segmentation:
---different customers have different needs.
---mass marketing
---target marketing
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Plant Location
Marketing
Segmentation
☆ The Requirement of Market Segments
有效的细分市场必须具备以下特征：
可衡量性。指各个细分市场的购买力和规模能被衡量的程度。
如果细分变数很难衡量的话，就无法界定市场。
可赢利性。指企业新选定的细分市场容量足以使企业获利。
可进入性。指所选定的细分市场必须与企业自身状况相匹配，企业有优势
占领这一市场。可进入性具体表现在信息进入、产品进入和竞争进入。
考虑市场的可进入性，实际上是研究其营销活动的可行性。
差异性。指细分市场在观念上能被区别并对不同的营销组合因素和方案有
不同的反应。
☆ Segmentation Base
细分消费者市场的基础
地理细分：国家、地区、城市、农村、气候、地形
人口细分：年龄、性别、职业、收入、教育、家庭人口、家庭类型、
家庭生命周期、国籍、民族、宗教、社会阶层
心理细分：社会阶层、生活方式、个性
行为细分：时机、追求利益、使用者地位、产品使用率、忠诚程度、
购买准备阶段、态度。
☆ Case study 案例
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Homework
1. Review theory and vocabulary
2. Questions for discussion
3. Exercises
.
4. Preview the chapter 5
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