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Marketing is the process used to determine what products or services may be of interest to customers,

and the strategy to use in sales, communications and business development.[1] It generates the strategy

that underlies sales techniques, business communication, and business developments.[1] It is an

integrated process through which companies build strong customer relationships and create value for

their customers and for themselves.[1]

Marketing is used to identify the customer, satisfy the customer, and keep the customer. With the

customer as the focus of its activities, marketing management is one of the major components of

business management. Marketing evolved to meet the stasis in developing new markets caused by

mature markets and overcapacities in the last 2-3 centuries.[citation needed] The adoption of marketing

strategies requires businesses to shift their focus from production to the perceived needs and wants of

their customers as the means of staying profitable.[citation needed]

Identifying Customer Needs

"You cannot manage a quality service organisation unless you understand the nature of what you are

providing, fully realise what your customers want from you and how they perceive you from the start."

W.Martin: Managing Customer Service, Crisp, 1989

Once you have identified who your customers are, you need to assess what they need from your

product or service.

Most customer needs can be divided into four basic categories:

The need to be understood

Customers need to feel that the message they are sending is being correctly received and interpreted

The need to feel welcome


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Customers need to feel that you are happy to see them

The need to feel important

Customers like to feel important and special

The need for comfort

Customers need physical and psychological comfort

PRODUCT LIFE CYCLE

Product life cycle management (or PLCM) is the succession of strategies used by business management

as a product goes through its life cycle. The conditions in which a product is sold (advertising, saturation)

changes over time and must be managed as it moves through its succession of stages.

Product life cycle (PLC) Like human beings, products also have a life-cycle. From birth to death, human

beings pass through various stages e.g. birth, growth, maturity, decline and death. A similar life-cycle is

seen in the case of products. The product life cycle goes through multiple phases, involves many

professional disciplines, and requires many skills, tools and processes. Product life cycle (PLC) has to do

with the life of a product in the market with respect to business/commercial costs and sales measures.

To say that a product has a life cycle is to assert three things:

Products have a limited life,

Product sales pass through distinct stages, each posing different challenges, opportunities, and

problems to the seller,

Products require different marketing, financing, manufacturing, purchasing, and human resource

strategies in each life cycle stage.


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The four main stages of a product's life cycle and the accompanying characteristics are:Stage

Characteristics

1. Market introduction stage costs are very high

slow sales volumes to start

little or no competition

demand has to be created

customers have to be prompted to try the product

makes no money at this stage

2. Growth stage costs reduced due to economies of scale

sales volume increases significantly

profitability begins to rise

public awareness increases

competition begins to increase with a few new players in establishing market

increased competition leads to price decreases

3. Maturity stage costs are lowered as a result of production volumes increasing and experience

curve effects

sales volume peaks and market saturation is reached

increase in competitors entering the market

prices tend to drop due to the proliferation of competing products

brand differentiation and feature diversification is emphasized to maintain or increase market share

Industrial profits go down

4. Saturation and decline stage costs become counter-optimal

sales volume decline

prices, profitability diminish

profit becomes more a challenge of production/distribution efficiency than increased sales

Contents [hide]


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1 Request for deviation

2 Market identification

3 Lessons of the product life cycle (PLC)

4 Limitations

5 See also

6 References

7 External links

[edit]

Request for deviation

In the process of building a product following defined procedure, an RFD is a request for authorization,

granted prior to the manufacture of an item, to depart from a particular performance

[edit]

Market identification

Termination is not always the end of the cycle; it can be the end of a micro-entrant within the grander

scope of a macro-environment. The auto industry, fast-food industry, petro-chemical industry, are just a

few that demonstrate a macro-environment that overall has not terminated even while micro-entrants

over time have come and gone.products need to be recognised in the market based upon the

characteristics it has.

[edit]

Lessons of the product life cycle (PLC)

It is claimed that every product has a life period, it is launched, it grows, and at some point, may die. A

fair comment is that - at least in the short term - not all products or services die. Jeans may die, but

clothes probably will not. Legal services or medical services may die, but depending on the social and

political climate, probably will not.

[edit]


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Over the last few years, the demand placed on the distribution and logistics departments of

manufacturing and marketing organizations has been continuously intensifying due to pressures from

increased competition, introduction of new manufacturing methods, and increased expectations from

partners and consumers in terms of low price and high service levels. Corporations are looking to

increase their customer service levels, while reducing inventory, working capital requirements and

distribution costs.

While distribution and logistics planning is gaining importance within corporations, distribution planners

and supply chain managers are still struggling to come to terms with the increased expectations. The

bulk of their time is still spent on short-term operational problems related to meeting immediate

demand requirements, without much consideration for longer-term costs or strategic issues.

Most of the issues faced by distribution planners and supply-chain planners can be linked to:

Demand-side Variability

Difference between forecasted and actual demand; hockey stick sales patterns

Supply-side Variability

Delays in supply; lead time variability; campaign production runs; production in lot sizes

Process Variability

Non-standardized planning process; use of intuition, experience, and rule-based heuristics instead ofcomplete cost based optimization

Lack of information availability and visibility

Delays in conveying forecast changes to Distribution since Distribution and Marketing work on different

forecasts

Conflicting objectives between different departments

Marketing wants to maximize sales and increase product availability, while Distribution wants to

minimize product inventories and distribution costs

Sub-optimal planning

Lack of synchronization between Production and Distribution planning; limitations of the human mind

to process and utilize all available data to make optimal decisions


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Distribution

The highly data-intensive, deterministic and repetitive nature of distribution planning lends itself well to

the use of Decision Support Systems. These systems can leverage the latest advances in information

technology and optimization techniques to manage inventories and plan dispatches to meet demand at

minimum cost.

Distribution Planning systems can address the following operational issues faced by a supply chain

manager

Product dispatching: When and where should a product be dispatched?

Product placement: Which product should be held at each location and in what quantity?

Vehicle loading: What products should be loaded on to a vehicle?

Vehicle choice: Which mode of transportation should be used?

Vehicle planning: How many vehicles of each type would be required on what days in the next one

month?

Distribution Planning solutions should reduce process variability, improve information visibility and co-

ordination between departments, and optimize planning, while responding to demand and supply side

variabilities in real time.

In addition to the above, Distribution Planning solutions can also aid in strategic decision-making in

areas like network planning, warehouse capacity planning, vehicle capacity planning, and inventory and

service level management. These systems facilitate long-term planning, and creation and analysis of

various demand, supply and supply chain structure scenarios.

Distribution Planning should be led by Demand Planning and be a driver for Production Planning to

ensure seamless supply chain integration.

Requirements of a good distribution planning system

Minimize total cost of distribution

Increase manager productivity through automated, high-speed planning


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Synchronize Distribution and Production planning

Formalize informed decision-making and reduce variability in the Distribution planning process

Leverage information collected through ERP and other transactional systems for optimized planning

Improve information visibility and coordination between Marketing, Distribution and Production.

Product

In marketing, a product is anything that can be offered to a market that might satisfy a want or need.[5]

In retailing, products are called merchandise. In manufacturing, products are purchased as raw materials

and sold as finished goods. Commodities are usually raw materials such as metals and agricultural

products, but a commodity can also be anything widely available in the open market. In project

management, products are the formal definition of the project deliverables that make up or contribute

to delivering the objectives of the project. In insurance, the policies are considered products offered for

sale by the insurance company that created the contract.

Documents

Production Mmmmmmmmmmmmm