Buisness Assigment



to appeal to different segments of the market. The evolution of marketing was caused due to mature markets and overcapacities in the last 2-3 centuries. yet individual. how the product life cycle impacts on the marketing mix.aimed at the Under 35 sports/leisure market. it can be concluded that marketing management is one of the major components of business management. brand names. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Domayne. and therefore has a number of separate markets. communications and business development. The three brand names include∗ ∗ ∗ Harvey Norman.Harvey Norman being a family store. living in luxury apartments. mainly in regards to knowledge and implementation of marketing segmentation.designed specifically for the suburban family Rebel Sport. designed specifically with the target of tempting to people who may not regularly use the Harvey Norman brand name simply because of the nuance the name has. With the customer as the focus of its activities. Companies then shifted the focus from production to the customer in order to stay profitable. or looking for a more budget-friendly option (particularly with newer products. Mahmoud . Harvey Norman has been well recognized as one of the most efficient businesses in Australia at marketing their products. and the strategy to use in sales. and to broaden the potential market for their products. and the necessity of regularly monitoring the effectiveness of the marketing plan.typically aimed at single person families. In order to try and attract consumers away from other stores. Harvey Norman has created three unique. and to satisfy the customer. as Harvey Norman use a price-leading strategy). to keep the customer. Harvey Norman realizes this. Marketing is used to identify the customer. Marketing Segmentation Every market is different. may scare away people who are either single.Page 2 of 4 Marketing is the process by which companies determine what products or services may be of interest to customers.

which could then be fed back into both stock production and supply. 2000. When computers were first released into the general market in 1995. and entered the maturity stage of the product lifecycle. products need to be treated in different ways. Harvey Norman approached the market Mahmoud . Gerry Harvey foresaw that people were going to enthusiastically accept them. however. computers are an obvious example of this influence. it would be particularly effective in boosting overall profits. It introduces new products earlier than its competitors. A single ad would not be enough. The product.. in order to make massive profits.Page 3 of 4 The creation of the three separate marketing areas has both its advantages and disadvantages. some may have four or five computers. At different stages of the lifecycle. The Product Lifecycle and the Marketing mix The product lifecycle is a critical aspect of any potential marketing plan. One of the key advantages to the development of the three marketing segments would of course be the increase in the amount of merchandise sold. so as to design campaigns to approach each of the markets individually. When discussing the influence of the product lifecycle on the marketing mix.” The introduction of computers as a wholesale product was a stroke of genius. As the three different segmentations would each attract a different portion of the overall market. The key disadvantage is the need to spread the advertising budget into not one but three separate accounts. the introduction of new operating platforms. ME. When computers became a more common product. helped to maintain a constant profit. if the company intends to avoid mentioning Harvey Norman brand name. was constantly undergoing a number of changes. People queued for hours in order to buy computers when they were first released on the main market. Price- Harvey Norman acts as a price leader. The marketing mix should be manipulated in such a way as to provide the best return for the business. etc. as well as laptop and handheld computers. claiming that “in five or ten years there is going to be a computer in every home. such as the 98. in order to maximize potential profit. leading to a profit increase of up to 132% by 2000. One of the biggest products in Harvey Norman’s catalogue since the company’s inception has been its range of information technology equipment. Product- A product can always be improved. and the marketing budget.particularly computers. and as it moved towards the maturity and decline stage of the product lifecycle.

he has the available finance to be able to effectively promote them. their introduction into the international market not only boosts the manufacturers own profits. large amounts of funds are diverted into its advertising and promotion. when the computer first became a main stream purchasable item at Harvey Norman. the amount spent on promoting either steadies or dies off. similar product. with new markets opening up all over the world. Harvey Norman must look at the way it can take with the product. to home entertainment. Place.reducing the price so as to maintain a larger market share than its competitors. Harvey Norman has promoted the concept of superstores. Promotion- Whenever products are first introduced to the market. the United Kingdom. This was particularly noticeable in 1995. so that when products do come out. and all the sales and after-sales assistance needed for it. When Harvey saw the decline in the purchases of computers. and Dubai. This is particularly effective at the height of the introduction and growth stages. and be able to find everything that they are after in the one location. because he spends any excess funds into the advertising budget.As a product moves into the growth stage.designed to stock one typical product. Once a product moves into the maturity stage. where people who are interested in purchasing a computer can simply head to one of these superstores. A perfect example was the swift transmission made by Harvey Norman from computers. particularly in regards to location. Harvey Norman also has the potential to export products internationally. As products reach the top of the growth stage. Mahmoud . and slowly moved out of computers as the market for computers settled.Page 4 of 4 with a price discounting approach. but also increases sales and overall profits in internationally trading companies such as Harvey Norman. Gerry Harvey ensured that a large budget was available for the promotion of computers. particularly in places like Singapore.leaving room for the entry into the market of a new. funds were then pushed towards the advertising of home entertainment.