If you can produce the new product at a low enough cost so as to be able to make a profit. Can better understand product attributes and the benefits customers feel are most important. Marketing oriented sources–identify opportunities based on consumer needs, lab research is directed to satisfy that research.
This is perhaps because the intensity of advertising that such expenditures would buy is below a threshold where most of the target audience would become aware of the product or service. Once that threshold is crossed value drug huntington ny there is a dramatic response to increasing levels of advertising expenditure. Eventually though, the target market is saturated and whilst advertising expenditures continue to increase the market response plateaus.
Marketers tend to tie promotion and placement elements together so they can reach their core audiences. For example, In the digital age, the “place” and “promotion” factors are as much online as they are offline. Specifically, where a product appears on a company’s web page or social media, as well as which types of search functions trigger corresponding, targeted ads for the product. When a company makes decisions regarding place, they are trying to determine where they should sell a product and how to deliver the product to the market. The goal of business executives is always to get their products in front of the consumers that are the most likely to buy them.
These three activities, once started within an organisation, never stop. SWOT analysis constitutes the diagnosis stage, the objectives and strategies stages are the planning activities and the action plan and monitoring, evaluation and control stages are the action part of the plan. Thus, strategic market management is proactive in that it prepares managers not merely to expect change but to anticipate it. Moreover it serves as an instrument for making management more externally orientated and less insular. Strategic market management also focuses management attention on the longer term and counters the natural tendency for management time to be totally absorbed by today’s problems and opportunities.
Put another way, the enterprise reaches a point where for every dollar spent on advertising the sales returns are below $1.00, i.e. the law of diminishing returns applies. The challenge to strategic planners is to work out the range of advertising expenditures that will prove the above threshold A but below threshold B. The marketing mix is a concept first introduced by McCarthy10 and comprises the product, price, place and promotion decisions and is often called the “4 P’s”. The mix is the right combination of marketing activities to ensure customer satisfaction. Each element of the marketing mix has a chapter of this textbook devoted to its exposition and therefore they are discussed only briefly here. Over fifty percent of corporate profits come from products grown on its plantations.