Whenever we reason in terms of the market, the first thing we have to refer to is the demand . In fact, the type of demand is the first factor that influences the attractiveness of a market. Assuming the basic definition global demand can be
- expandable: when the level of sales is influenced by the marketing action of the companies and by the general trend of the economy. This means that there is still untapped market potential
- non-expandable : when the total level of sales is no longer influenced by the USA Phone Number List marketing efforts of the firms and by the general trend of the economy
It follows that global demand is influenced by two categories of factors:
- external (or uncontrollable) factors: linked to the macro-economic context
- internal (or controllable) factors : represented by the total marketing efforts made by competing firms on the market
But the attractiveness of a market does not only depend on the size of the potential market and its extension capabilities, but also on the characteristics of the product life cycle . The concept of the life cycle Cryp Email List of a product (CVP) is borrowed from biology, because it refers to the physiological evolution of every living organism.In other words, In the life cycle, products go through 4 distinct phases: introduction, turbulence, maturity and decline. For each status of the product, the market is more or less attractive.
1. INTRODUCTION: The market seems to be characterized by
- very modest sales
- consumer resistance to new products that consider themselves the so-called “pioneers”
- their demand is very strict
- the role of word of mouth is important.
- distributors are very reluctant to stock new products
- period of “pro-tempore monopoly” enjoyed by the innovative company
Objectives and Strategies
- make your product preferable over those of the competition
- build a strong brand image and develop brand loyalty
- reduce prices to penetrate the market
- “selective” and no longer “informative” communication.