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NECO GCE 2019 MARKETING SOLUTION AVAILABLE HERE
Author: Mr. Dan
Posted on: 20:38:23 Tue, 19 Nov 2019


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Market-Obj
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(1a)
Product life cycle (PLC) is the cycle through which every product goes through from introduction to withdrawal or eventual demise.

(1b)
1. Development
The product development stage is often referred to as “the valley of death.” At this stage, costs are accumulating with no corresponding revenue. Some products require years and large capital investment to develop and then test their effectiveness. Since risk is high, outside funding sources are limited. While existing companies often fund research and development from revenue generated by current products, in startup businesses, this stage is typically funded by the entrepreneur from their own personal resources.

2. Introduction
The introduction stage is about developing a market for the product and building product awareness. Marketing costs are high at this stage, as it is necessary to reach out to potential customers. This is also the stage where intellectual property rights protection is obtained. Product pricing may be high to recover costs associated with the development stage of the product life cycle, and funding for this stage is typically through investors or lenders.

3. Growth
In the growth stage, the product has been accepted by customers, and companies are striving to increase market share. For innovative products there is limited competition at this stage, so pricing can remain at a higher level. Both product demand and profits are increasing, and marketing is aimed at a broad audience. Funding for this stage is generally still through lenders, or through increasing sales revenue.

4. Maturity
At the mature stage, sales will level off. Competition increases, so product features may need to be enhanced to maintain market share. While unit sales are at their highest at this stage, prices tend to decline to stay competitive. Production costs also tend to decline at this stage because of more efficiency in the manufacturing process. Companies usually do not need additional funding at this stage.
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(4a)
Promotion Mix refers to the blend of several promotional tools used by the business to create, maintain and increase the demand for goods and services.

(4b)
(i)Advertising
(ii)Personal Selling
(iii)Sales promotion
(iv)Public relations


(i)Advertising: The advertising is any paid form of non-personal presentation and promotion of goods and services by the identified sponsor in the exchange of a fee. Through advertising, the marketer tries to build a pull strategy; wherein the customer is instigated to try the product at least once.

(ii)Personal Selling: This is one of the traditional forms of promotional tool wherein the salesman interacts with the customer directly by visiting them.

(iii)Sales Promotion: The sales promotion is the short term incentives given to the customers to have an increased sale for a given period.Generally, the sales promotion schemes are floated in the market at the time of festivals or the end of the season.

(iv)Public Relations: The marketers try to build a favourable image in the market by creating relations with the general public. The companies carry out several public relations campaigns with the objective to have a support of all the people associated with it either directly or indirectly.
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