Consumer Behavior Concepts and Strategies - Term Paper Example

Table of Contents 1.0 Executive Summary 2 2.0 Introduction 4 3.0 Product Life Cycle 4 4.0 New Market Entry 5 5.0 Growth Strategies 7 6.0 Shake-out Stage 8 7.0 Mature Stage 9 8.0 Decline Stage 10 9.0 New Economy Market 11 10.0 Organizational Structure 11 11.0 Marketing Plan 12 12.0 Marketing Metrics 13 13.0 Marketing Audit 13 14.0 Conclusion 14 15.0 References 16 1.0 Executive Summary The paper which analyzes the strategic marketing strategy which UNE Life can adopt during the different phases in the product life cycle brings forward the different important areas which UNE Life needs to focus for better performance. The business model, targeted audiences and area of operations presents ample opportunities which will help UNE Life to ensure better growth. UNE Life at the present moment is in the growth phase as degree of competition is low, growth is fast, business operations is increasing and revenues are growing fast. UNE Life has to pursue with their strategy of niche market penetration and has to continue to work as market leader by identifying different pioneer strategies which will help the business to grow. UNE Life has to look at expansion strategy by looking to work in new markets or adding new business options and ventures so that risk gets diversified. For the long term future UNE Life has to use fortress strategy so that they work on their core strengths and use the resources in the most productive manner. In addition to it UNE Life has to improve their business by being innovative and coming with something new for students so that students can avail those facilities. During the different phases of the product life cycle like decline phase UNE Life has to be aggressive and look to add new business ventures so that the old product and business can again be revived and growth opportunities can be garnered. Along with it the organizational structure which UNE Life is presently following needs to be changed from functional form of organizational structure to hybrid form of organizational structure so that better functioning becomes possible. The other framework should look at determining the marketing metrics and marketing audit so that the overall process is better monitored and the manner in which different working needs to be controlled is achieved. Thus, on the whole UNE Life has to work of different dimensions and has to identify the different core areas and strategies which they need to work on. This will help to identify appropriate strategies based on which UNE Life can ensure that they are able to carry out the different functioning based on different positioning in the product life cycle. 2.0 Introduction This paper forms part of the previous report which focused on providing the basic marketing strategy which UNE Life uses and included different dimensions like targeting, positioning, product description and so on. This report will focus on providing a more detailed look into the different marketing strategies which UNE Life can adopt during the different phases of the product life cycle. This will thereby help the management to take appropriate steps at different stages and will improve the overall functioning. In the beginning the report provides the stage at which UNE Life is on the product life cycle and the strategies which UNE Life can adopt from that juncture in the future. The paper then focuses towards providing the different growth strategies which they need to use for improvement in performance. This is followed by identifying the different strategies which UNE Life can use when it moves to different stages in the product life cycle which will help to improve the dimensions through which business performance will be better shaped. The paper also provides useful information and input regarding the new economy market and organizational structure which UNE Life can adopt. At the end the paper provides information related to marketing metrics and marketing audit so that performance can be checked and controlled by taking appropriate actions at the correct time. Thus, the paper will provide a complete description regarding the different strategies and dimensions which UNE Life can adopt and the manner in which it will guide them during the different phases of the product life cycle. 3.0 Product Life Cycle Product life cycle denotes the stage where the product or service is positioned in the resent condition and thereby lays down the path which they need to follow so that better use of resources becomes possible. Businesses being able to identify the appropriate stage where their product or services is positioned will be able to develop marketing strategies which will pay better returns (Brassington and Pettitt, 2001). Considering the stage where UNE Life is positioned in the product life cycle it is seen that the organization is placed at the growth phase. This provides ample opportunities before UNE Life which can be used to ensure rapid growth, increasing market share, better market penetration and overall growth in the revenues. The business model and niche segment of the society which UNE Life is looking to attract provides opportunities through which UNE Life will be able to ensure better growth. The stage where UNE Life is presently positioned also shows the different mechanism which UNE Life can adopt like adding new product line, product line extension, adding new features to the existing product and providing better opportunities so that the overall business potential strengthens. The stage where UNE Life is presently will thereby help to ensure that they are able to improve the functioning mechanism and ensure that the business grows and is able to deal with the different needs of the market in a better way. 4.0 New Market Entry This a strategy where organizations look to move from the traditional way of working towards new targeted audience by offering something new so that a new market for the product can be identified. The strategies which organization adopt is aimed towards adding new product, extension of the product line, adding new features to the existing product and reducing cost so that overall efficiency and effectiveness can be achieved (Canhoto, Clark & Fennemore, 2013). UNE Life can look at the same by adding new business ventures and facilities which the students can avail. This will provide a bigger market and targeting the niche segment of the society will help to ensure lower competition and better opportunities of being successful. UNE Life while looking towards the future has to identify the appropriate marketing strategies which they can identify and can be used in the future. This will help to attract new customers at the same time provide an opportunity to retain the old ones. This will require gathering information from the market through market research so that addition of new products or features can be made according to the needs and requirements of the students. This will help to multiply the effectiveness through which UNE Life is working and will be able to improve the overall dimensions through which different activities are being carried out. UNE Life while looking for new market entry strategy can look forward towards a pioneer or follower strategy. The business in which UNE Life is and the model which they have used states that pioneer strategy will be the most beneficial more them. This will help to ensure differentiation while comparing with the competitors and will help to ensure that competition will be better dealt (Chawla, 2003). Pioneer strategy will also help them to take advantage of first mover advantage and will provide the overall framework through which different business decisions can be taken. UNE Life based on the pioneer strategy which will help them to be a market leader can look to improve their business and ensure better growth through the following strategies Niche Market Penetration: UNE Life should continue and look at niche market penetration as it will provide them an opportunity to continue to attract students. This is a strategy which has already helped UNE Life so pursuing with the same during the new market entry would be beneficial. The brand name and experience which UNE Life has will also be helpful and it will thereby help to carve out the required path through which better services can be provided. This strategy will ensure that UNE Life will be able to carry out the different functions effectively and create a large market for its product and services. Skimming and Early Withdrawal: UNE Life can also look towards skimming and early withdrawal strategy where they will look to remove the product or services from the market after planned interval. The different facilities and products will be provided for a certain time interval and will then cease off (Doole and Lowe, 2001). This will help to ensure that customers look towards new products and services as it will be offered for short time interval. This will help UNE Life to ensure that niche penetration becomes better and the process helps to meet the different needs and requirements in a better way. The strategy which UNE Life can thereby adopt is of a pioneer where they work as leader and look towards niche market penetration. In addition to it addition of new products and services for short time intervals which will look towards improving the overall services which is being provided and will thereby help to provide more and more facilities and services to the students. 5.0 Growth Strategies UNE Life is already in the growth stage so they need to look at identifying different strategies which will provide them sustained growth. UNE Life which is already looking to pioneer the market needs to look at working as market leader. This will provide UNE Life with an opportunity through which they will be able achieve better growth rates and a wide market to cater. Since, the business is already working on a differentiation model and looks to be unique so that offerings will help to attract customers in a better way. This will also help UNE Life to look at different options like market expansion, flanker, confrontation, fortress and contraction strategies or a combination of one or more of such growth market strategies which would be the most beneficial for them (Cook & Dave, 2004). UNE Life can thereby look at pursuing the following strategies which will be beneficial to them and improve productivity Market Expansion: UNE Life can aim at market expansion where they will look to target different universities and improve their overall presence in the market. This should be matched by adding new product line and facilities so that more and more customers can be attracted (Chrisan, 2001). The market expansion strategy has to be developed and identified in a manner which will look towards following the same business model and strengthening the manner in which different business decisions are taken. Flanker Strategy: This strategy will be aimed towards repeating purchase so that the cost of searching for new customers can be reduced. This will help to identify a pool of loyal customers through which UNE Life can improve their market share. This will help to grow as reducing the cost will multiply the gains and ensure that the business is able to gain more and more. The mechanism will improve the positioning in the market and will help consumers to identify and associate with product in a better way which would thereby help to improve the business potential. 6.0 Shake-out Stage This stage is characterized by dominance of the big players and small players looking to slowly move away from business. The growth rate has reached it maximum point and the business is going to witness a slow down after a certain time interval (Chen, 2003). UNE Life at the present is in the growth phase but needs to further look at identifying the different ways through which different strategies can be used during the phase. Further, during the share out phase UNE Life can look forward towards using different strategies which are as Competitive Advantage: UNE Life needs to gain competitive advantage during the period which they can easily attain by using the same business model which they have been following. The differentiation strategy will provide the required competitive advantage through which better segmentation and strategies will be ensured through which better positioning will be ensured. This will help to ensure that UNE Life will be able to deal with the period and gain competitive advantage through which overall business prospect will improve Transition: During the stage UNE Life can look forward towards taking strategies which will help to deal with the issue. The framework will be aimed towards identifying different strategies like adding new products and services, extension of new product line, attracting the niche segment of the market and improving the overall dimension through which different services are provided. This will help UNE Life to improve the business and ensure that better sustenance is achieved and the business will be able to work in a proper way. Market Share: UNE Life has to aim towards improving its market share by looking at mergers, acquisitions and alliance so that they can bring about the change in their working phenomenon (Clegg & Walsh, 2004). This will help UNE Life to be able to work at the different dimensions through which service level can be improved and the performance is better shaped up. This will help UNE Life to be able to improve the dimensions through which working environment will develop 7.0 Mature Stage This stage is characterized by one where the product has reached at the maximum peak and starts to fall. The stage results in reduced in decreased investment, reduction in revenues and stiff competition which thereby has an impact on the business and the weak players slowly ceases out. Organizations need to look forward towards determining the strategy through which better development of strategies would become possible and the overall business dimension will be shaped so that business strategies are better shaped. This will require that UNE Life look at the following strategies Market Expansion: UNE Life should look at market expansion which can be achieved through different ways. UNE Life can look forward towards market expansion through geographical expansion and moving towards different market. This can be matched by different strategies like adding new product and features, extension of product line, improving the level of service and working on phenomenon through which overall business performance can be improved. This will help to cater to a wide market and improve the overall business potential through which better results will be achieved Increased Penetration: UNE Life can aim towards increased penetration in the market by adding new products and services so that the requirements of the niche market can be met. This will help to ensure that all students will be attracted towards the different offerings and would thereby help to improve the rate at which different services are provided. 8.0 Decline Stage During this stage of the product life cycle UNE Life has to look at implementing different strategies which will help them to cater the different needs and can look at Harvesting: UNE Life has to look forward towards planned discontinuation of different products and services after a certain period of time and replacing the same with new product and service. Niche: UNE Life has to attract the niche segment of the society by selling products and services which people are not aware of. This will provide an opportunity to attract those section of the society who were previously neglected and will provide a bigger and different market to be catered 9.0 New Economy Market The new economy market would require developing strategies which are in tune with the changing business environment so that UNE Life is able to understand customers better. Continuous change and up gradation will help to meet the different needs of the consumer and UNE Life through the process can bring the required change through which better customer needs are met. UNE Life will have to promote their product and services and based on different positioning develop appropriate marketing strategies. The overall working environment will have to undergo the required changes so that business effectiveness is gained and overall effectiveness is witnessed in the usage of different resources. 10.0 Organizational Structure The organizational structure which UNE Life is presently using is a functional form of organizational structure where the relationship between responsibility, accountability and authority has been identified. Using the functional form of organizational structure has created issues associated with coordination and communication which can be solved by using matrix form of organizational structure. Matrix form of organizational structure is more suitable considering the business model which UNE Life follows and would thereby help to deal with the different needs and requirements and provide better dimensions through which business process will be carried out. 11.0 Marketing Plans The marketing plan has been presented through the SWOT analysis which helps to understand the different areas which needs to be focused on SWOT Strengths Strong image due to long association with the business Aiming a niche market of students which provides a wide market to cater Clear and realistic goals has ensured better use of resources Weaknesses Lack of coordination and communication between the different functional bodies which has impacted the degree of performance Limited innovation hasn’t provided the opportunity to come with new products and services Opportunities Continuous growth of the different needs by students provides an opportunity to tap a huge market The number of universities are continuously multiplying which thereby provides an opportunity to cater to a big market Adding new services and products which will ensure innovation and multiply the ease of learning for students is something which is desired Threats Competition from different players has limited the manner in which work is carried out Slowing economy and reducing disposable income is impacting the business of UNE Life This brings the different focus areas through which UNE Life can improve their manner of working 12.0 Marketing Metrics The marketing metrics helps to analyze the different strategies in quantifiable terms and helps the management to take decision regarding future expenses, the performance of the organization and other dimensions through which overall performance will be shaped. The performance of UNE Life is strong and growth is being witnessed in bottom line, increase in market share and overall growth of the business which poses an opportunity of better development in the future (Berkman & Gilson, 2001). This will help UNE Life to ensure that the core areas through which performance can be shaped up is looked at and would bring about the required changes through which different business decisions are taken. 13.0 Marketing Audit This focuses on the appraisal mechanism which UNE Life has used The Macro-environment Audit UNE Life has to aim at being innovative and coming up with different measures and strategies which will help to satisfy the different needs and wants of the consumer. The overall process should be such that it looks at dimensions through which performance will be improved. UNE Life has to ensure that while looking to provide different services cost effectiveness is ensured and the overall dimensions are aimed towards improving the business performance and having more and more opportunities in the future. Marketing Organization Audit UNE Life has looked at having the best personnel and service facilities so that students are more and more comfortable. This has to be matched by the promotional mechanism through which better delivery standards can be developed and customer needs and wants can be met. Strategy Audit The audit highlights that the strategy developed by UNE Life is according to the business model and has helped to meet the different needs of the students. The strategies are tuned with the market needs and have thereby helped to identify the dimensions and mechanism through which customer satisfaction is enhanced. 14.0 Conclusion The report provides the stage at which UNE Life is on the product life cycle and the strategies which UNE Life can adopt from that juncture in the future. The paper then focuses towards providing the different growth strategies which they need to use for improvement in performance. This is followed by identifying the different strategies which UNE Life can use when it moves to different stages in the product life cycle which will help to improve the dimensions through which business performance will be better shaped. The paper also provides useful information and input regarding the new economy market and organizational structure which UNE Life can adopt. At the end the paper provides information related to marketing metrics and marketing audit so that performance can be checked and controlled by taking appropriate actions at the correct time. Thus, the paper will provide a complete description regarding the different strategies and dimensions which UNE Life can adopt and the manner in which it will guide them during the different phases of the product life cycle. 15.0 References Berkman, H. & Gilson, C. (2001). Consumer Behavior Concepts and Strategies, Kent, Boston Brassington, J. and Pettitt, M. (2001). Principles of Marketing, 2nd Edition, Prentice Hall Chrisan, P. (2001). Marketing: A Behavioral Analysis, McGraw – Hill. New York Clegg, C. & Walsh, S. (2004). Change Management: Time for a change. European Journal of Work and Organizational Psychology, 13 (2), pp. 217-239 Chen, I. (2003). Understanding Customer relationship management: people, process and technology. Business Process Management Journal, 9 (5), 672-688 Chawla, A. (2003). Marketing Management for Service Industry. Workshop on Marketing of Educational Institute, Programme and Services Cook, D. & Dave, D. (2004). Structural element of service quality product. International Journal of Business Performance Management, 6 (2), 189-207 Canhoto, A., Clark, M. & Fennemore, P. (2013). Emerging segmentation practices in the age of the social customer. Journal of Strategic Marketing, 21 (5), 413-428. Doole, I., and Lowe, R. (2001). International Marketing Strategy. 3rd Edition, Bedford Row, London, Thomson Read More