4.a.

Explain how the product life cycle concept is significant in

understanding strategic marketing.

With the rapid technological development of the semiconductor industry, the PLC (capital
goods material) is somewhat typical, but different in certain aspects. Product Life Cycle (P
LC) can be used for a wide range of applications, from high-end semiconductors to low-cost
components and components for consumer electronics. (REIFF, 2020) The product life cycle
of semiconductor devices typically has an accelerated accentuation compared to the
conventional model. Many experienced marketers believe that the introduction phase of
devices and materials in the industry is relatively simple, as customers, especially early
adopters, are always interested in the latest technologies. To implement an effective strategic
marketing plan, you need to understand the PLC (capital goods) and its role in your
company's business strategy. It is easy to get your customers interested in you, but not so
easy to understand for your P LC.

However, a well-developed strategy for product launch is essential for the long-term success
of your product. This strategy starts with a clear understanding of the PLC (capital goods)
and its role in your company's business strategy. You can achieve this by involving your
customers in product development from the very beginning. Give them the opportunity to
discuss with you in detail how the product is designed, priced, maintained and packaged.
Customers who express interest in their technology and help define the product are excellent
candidates for beta sites. Customer partnerships are essential for the introduction and help to
minimize the high support costs of the product launch and provide good reference data to
secure your claims. By engaging your customers in this area in advance, product launches
and promotions can have a big impact by giving momentum to the early part of the life
cycle.

However, remember that the specification must be broad; customers need to know why they
should consider your product and what it will do for them. The PIP must also include the
specification of the product definition; this will be helpful during the start-up phase. This
also gives you an idea of what you might not have thought; you may need to change the
recipe or product configuration. Expect reactions from your customers; they will tell you
what they like and dislike, so be prepared.
Your customers will tell you how to use and describe your product, so you need to move
from a technical understanding to an application-oriented mindset. Another factor in the
start-up phase is the expectation of the reaction of the competition. This information will
help to enable a successful introduction to the next phase of the PLC and increase the
success of the product.
This is particularly true if raw materials are taken into account or the product is price
sensitive, such as in the chemical process. The competitor can respond to a product launch
by lowering the price, which can delay the time for the customer to evaluate your product
and thus your business model.

Information must be provided to support the technical superiority of your product, such as
the quality of the chemical process, the cost of raw materials, and the safety and quality of
the product. Marketing communication is usually direct and very targeted, but not
formalized. A large advertising budget is not necessary during the implementation phase of
the PLC. However, a clearly defined strategy for future activities needs to be developed.

The idea is to maximize your market share, establish and maintain your competitive
advantage. During the growth cycle, you want to capture as much of the market as possible
as quickly as possible. Who is your audience and how will you deliver your message once
your product is presented? Specification and formulation should be fairly well defined and
the product should have all the features mentioned in the Market Requirement Statement
(MRS). Over time, your product as a PLC continuously improves while you ramp up
production.

In every industry, the production phase often reaches the limits of capacity in terms of
materials and equipment. This growth phase is crucial for the long-term viability of the
product as a PLC as well as for your business model. A good prognosis of customer
requirements helps in determining production requirements. Set realistic delivery times and
communicate delays immediately to your customers, as well as plan for possible delays.

The serious mistake that many companies make during the growth phase is not that they are
not engaged, but rather the lack of communication. To neglect the most important aspects of
the production process, such as the customer requirements, is bebe significant. One of Intel's
early vice-presidents once said: 'You can't calculate what the market will bear, but you can
use price mechanisms to recoup your investment' as the product goes through the growth
phase. This is the time when markets will be more willing to pay a premium, and everything
depends on whether the promised delivery date is met.

Marketing and communication play a major role during the growth phase of a product. This
is usually the case when you are trying to gain market share and support sales activities. You
need to get the message out and create a positive customer perception and market your
product to the right audience. During this period, you will focus on maintaining market share
and meeting the requirements originally defined in MRS. Your product range must be
reliable, have low operating costs and product performance must be proven and clearly
defined.

Materials such as photoresists, processes and chemicals undergo a four to five-year

maturation cycle. Once a product has matured, it is subject to a two-year phase and then a
three to five-month phase. Very rarely will a customer switch to a competitive product and
very rarely will the price be competitive to maintain market share. The industry's philosophy
is "If it's not broke, don't fix it," and product support must be maintained to satisfy existing
customer bases.
Now is the time to address negative perceptions that can develop, and communication efforts
and marketing must improve the perception of the customer.

Applied Materials, the leading semiconductor company, has an outstanding campaign to

promote and support its claim as a provider of total process solutions. The product range is
very mature in this phase, advertising and public relations are intended to strengthen the
brand image of the market leader. The strategy may be to find new applications for the
technology and products, or improvements may be made to extend the life of the product.
Renaming or reintroducing an improved version is a common strategy for many companies
that try to market a product when it is in decline.

Pricing could become an issue, especially in the materials sector, but the company has
successfully acquired devices and materials originally developed for semiconductor
manufacturing and is offering them for use in printed circuit boards (PCBs) and other
materials. The company also offers these in a variety of other applications, such as solar
cells and solar cells. One way to maintain gross margins is to minimize product support, but
it is important not to lose customer loyalty. Customers recognise that a company has been
manufacturing a product for a long time and that it should be cheap to manufacture. It is
very difficult for products to be in decline, and one of the reasons for the company's success
in the past. The company must choose the supplier of its choice for the next technology
purchase: the manufacturer of the product, the customer or a third-party supplier.

4.b. Illustrate with one of the case studies presented this semester
in the weekly readings that you have not already used in this
section of the exam.
Illustration of the Typewriter
When it was first introduced at the end of the 19th century, the typewriter was one of the
most popular forms of electronic writing technology. As technology improved the ease and
efficiency of writing, typewriters became more popular, and they were quickly replaced by
pens and paper, leading to a decline in revenue and demand.

Having been overtaken by companies such as Microsoft (MSFT), Get Report suggests that
the typewriter is at the very end of its decline, with demand falling sharply. We use desktop
computers, laptops and smartphones to type on the go, which has experienced a similar
decline in demand for typewriters and other electronic writing technologies. (Elgan, 2017)

References
REIFF, N., 2020. With the rapid technological development of the semiconductor industry,
the PLC (capital goods material) is somewhat typical, but different in certain aspects.
Product Life Cycle (P LC) can be used for a wide range of applications, from high-end
semicondu, s.l.: https://www.investopedia.com/articles/markets/012216/worlds-top-10-
semiconductor-companies-tsmintc.asp.
Elgan, M., 2017. Having been overtaken by companies such as Microsoft (MSFT), Get Report
suggests that the typewriter is at the very end of its decline, with demand falling sharply. We
use desktop computers, laptops and smartphones to type on the go, which has experienced,
s.l.: https://www.computerworld.com/article/3241233/with-smartphones-like-these-why-
do-we-need-laptops.html.