How to Conduct Product Market Analysis Essay
Contemporary, thesis is often used to refer to the research in various academic fields and describe the results of academic research articles, referred to as thesis. It is both a means of exploring issues for academic research and a tool for describing the results of academic research for academic communication. The following is my compilation of how to conduct product market analysis essay, welcome to share.
Before market development, it is necessary to analyze the characteristics of the product itself and its target market, and on this basis to develop an appropriate marketing mix strategy for each type of product.
The Four Stages of the Product Life Cycle
The product life cycle is a way of recognizing the different stages of a product's sales history. In general, the product life cycle consists of four distinct phases, namely the introduction phase, the growth phase, the maturity phase, and the decline phase.
Introduction period. The sales growth of a product during the introduction phase is very slow and the profits are almost non-existent due to the huge expenses incurred in introducing the product to the market. However, if the product is required by the market, it has a lot of . Room for growth.
Adulthood. This is the product is rapidly accepted by the market and a large increase in profits in the period, like a rising star, with great profit creativity and attraction.
Maturity. At this stage, the product begins to be accepted by most potential customers and the sales potential is realized to the extreme. At the same time, followers have created products of equal or higher quality and competition is extremely fierce.
Decline. At this point, after a long period of growth in product sales has shown a downward trend, profits continue to decline. At this stage, either to explore new market growth, sales revitalization, or exit the market as soon as possible.
Division of new and old markets
We can divide the market into two categories based on the company's familiarity with the market and the time when the market itself appeared: new markets and old markets. New markets are relatively new to the company, while old markets are already entered by the company.
New markets. For brand new market segments, it is better to start first than to suffer later. Most studies agree that emerging market pioneers tend to gain the greatest advantage. Because early adopters tend to favor the brands that were first used, market pioneers have a much higher market share than early followers and latecomers. For market followers, they should focus their superior forces on key moments and locations, and through the "right strike" at the right moment, they can hit their rivals hard and take market share.
Old markets. The most aggressive strategy in an established market is to innovate. Leaders should overcome complacency, refuse to settle for the status quo, and be at the forefront of new product ideas, better customer service concepts, and cost reductions in their industry. However, it is not often that a company can be a market leader and still remain vigilant. General Motors, the world's largest automaker, was reluctant to produce small cars for fear of losing profits, but it lost significant profits and market share; Xerox did not develop small printers, and as a result, Japanese manufacturers took advantage of the situation.
Product Market Analysis
A product market analysis matrix can be composed of four items: new product, old product, new market, and old market.
For Quadrant 1, the company should analyze whether the demand has been maximally satisfied and whether there are still opportunities for penetration? If so, it should adopt a market penetration strategy to tap into a customer base that is not using the company's product.
For Quadrant 2, the company should examine whether there is demand for the company's existing product in the new market. If there is, this is a good market development opportunity and the company should actively pursue a market development strategy.
For Quadrant 3, the company should analyze whether there are other unmet needs in the old market. If so, it should develop a new product to fulfill that need.
For Quadrant 4, the company should analyze what needs exist in the new market. Since most of these market opportunities are outside of the company's original scope of operations, the company needs to adopt a multi-pronged business strategy.
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