1 / 8

Figure 11.3: Sales and Profit Life Cycles

Figure 11.3: Sales and Profit Life Cycles. Product Life-Cycle Marketing Strategies. Issues in Collecting and Using Information #6. Invasion of customer privacy e.g., use of medical databases to sell healthcare products Information and ethics

hija
Download Presentation

Figure 11.3: Sales and Profit Life Cycles

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Figure 11.3: Sales and Profit Life Cycles

  2. Product Life-Cycle Marketing Strategies

  3. Issues in Collectingand Using Information #6 • Invasion of customer privacy • e.g., use of medical databases to sell healthcare products • Information and ethics • e.g., guidelines for sharing of confidential information TM 5-13 McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved.

  4. Bargaining Power of Buyers • Concentrated or large volume sales • Purchased products are a significant fraction of buyer’s costs • Products are standard or undifferentiated • There are few switching costs • Low profits - pressure on suppliers • Buyers pose threat of backward integration • Buyer has full information

  5. Bargaining Power of Suppliers • Concentrated suppliers, fragmented buyers • Little substitution threat • Customer is not an important buyer • Supplier’s product is important input • High buyer switching costs • Suppliers pose threat of forward integration • Government - defense, timber, regulation

  6. Rivalry: Price competition, advertising, product introductions, customer service.. • Numerous Competitors: More mavericks • Slow Industry Growth • High Fixed or Storage Costs (Excess capacity often leads to price wars) • Lack of Differentiation = commodity • Foreign Competitors • High Strategic Stakes • High Exit Costs

  7. Likelihood of retaliation to entry • History of retaliation • Established firms with substantial resources such as cash, borrowing capacity, excess productive capacity, distribution leverage • Established firms with illiquid industry assets • Slow industry growth - can’t absorb new competition.

  8. Figure 9-2: Barriers and Profitability

More Related