We all live and work in a dynamic marketing situation. Therefore as a manager, accept as the normal state of affairs that all products have a limited life. This fact is commonly expressed in the form of the product life-cycle curve.
Products during their existence go through the phases indicated on the curve, which include:
- Development phase – is the stage where the product before, sometimes long before, it reaches the marketplace. Market research must be undertaken, the product designed, prototypes built, plants laid down.
- Growth phase – the growth phase the product reaches general acceptance, and sales increase steeply. Profits mount as development costs are recovered and unit costs decrease with greater volume of production.
- Maturity phase – as the product reaches maturity, initial demand is beginning to be satisfied, competitors may have arrived on the scene, and there will be greater reliance on replacement sales. Sales increase more slowly, and profits come under pressure and may start to decline.
- Decline phase – when the market is fully saturated, sales will ‘peak off’ and profits decline still further. 5. Finally, sales will go into definite decline and margins come under very severe pressure as it becomes increasingly costly to maintain sales at a reasonable level.
The main importance of the life-cycle concept is to remind us Products have a limited life, profit levels are not constant but change throughout a product’s life and products require a different marketing programme at each stage of their life-cycle.
Click here for more details: http://www.quickmba.com/marketing/product/lifecycle
If you are a webmaster, a digital marketer, or any kind of professional related to internet marketing, it is important for you to read about all the positives surrounding the power of consumer reviews and how they impact the organic online promotion of your business. However, many are still extremely ‘wary’ of reviews and the effect on their business.
Some business owners hate consumer reviews. They are afraid of the possibility that a number of people might say something bad about their product or service. They also fear complaints.
The general feeling toward ‘online’ reviews is still quite negative, the mere mention of customer reviews invoking feelings of fear and negativity. Instead, what many businesses prefer is by using referrals; they use word of mouth in order for their business to be found and known by potential customers.
Knowing what your customer think and something to say about your product or service is important. Basically, online reviews are the online version of the word of mouth. So if you know what people think about your brand, you will be able to site some areas of improvement. You will also be able to know how you can give your customers better service so that they will be satisfied and hopefully they can give your brand positive feedbacks online.
Do you want to know more about the importance of customer reviews to online marketing? Read this article from Forbes: http://www.forbes.com/sites/jaysondemers/2015/12/28/how-important-are-customer-reviews-for-online-marketing/#c359258788c6
There are many reasons why business benchmarking can be important to businesses, even if you run and manage or a small one. Business benchmarking is the process wherein you determine which company is the best. The company you choose should be the one that sets the standard and identify the standard.
Using benchmarking, you can basically your own products or services, processes and the metrics that you use with your competitors. However, benchmarking is not only about concentrating on your competitors. What you need to do is to take a look at the industry in the wider prospective and compare it with other industries. That is certainly a difficult thing to do and being tasked to do. In other words, it simply means that you have to take a look at a wide variety of dimensions including quality, time and price.
With the use of an effective benchmarking process, you will be able to do things better, quicker and much more cost effective. This is the primary reason why business benchmarking is a crucial process for business organisations, regardless of its size or nature. Even though it is tricky and complex, you can simplify the whole procedure by means of benchmarking with balanced scorecard.
If you want to learn more about business benchmarking for small businesses, visit this article posted by the Australian Government Taxation Office: https://www.ato.gov.au/Business/Small-business-benchmarks
Sole proprietorship is one of the various types of businesses that have been around for centuries. Because of the minimal financial requirement in most cases, it has been successfully practiced by individuals because of the ease of setting it up. This type of business is the highest employer of labours almost in all parts of the world.
Many of the popular partnerships and Public Liability Companies we have nowadays actually started as sole proprietorship and later transited as they grew larger and the financial demand became too high for a single person to easily cope with. There are so many people out there who have so successfully managed their personal businesses and turned them into a brand.
Sole proprietorship is a type of business where a single individual owns and manages the business. The owner makes decisions alone, makes all forms of financial transactions and controls every aspect of the business without consulting anybody. It is often referred to as a one man business or one man show.
There are many benefits starting a sole proprietorship can give to someone. First, almost anybody can set up one form of sole proprietorship or the other because only minimal amount of money is required to do so. Secondly, the owner solely decides everything with regards to his business. Then, the owner of the business does not pay a corporate tax on his business; instead his business is charged at the rate of personal income tax thereby enabling him to save more money in the long run. Finally, the legal cost of setting up a sole proprietorship is usually minimal as most economies encourage individuals to set up their own businesses without passing through harsh legal processes.
For more about sole proprietorship in Australia, check this out: http://www.business.gov.au/business-topics/business-structures-and-types/business-structures/sole-trader/Pages/default.aspx