The product life cycle5
Attractiveness of a market segment9
Target market strategies9
Building and managing brand equity12
There are three main international marketing orientations13 Ethics in marketing14
Gender role and marketing14
Generic marketing strategy15
The playboy product life cycle16
A marketing strategy calls for the organization to pull its limited resources to attract the desired market segment and gain some competitive advantage. The positioning of a product is the reason the target segment of the market uses or buys a product based on the attributes of the product which ensure that the product attracts the desired market segment by meeting the product expectations (Wind, 1990). These two strategies are used to attract consumers of all product types.
The magazine industry mainly applies these strategies to attract buyers towards their product. They offer their readers target content by being first segmented into the various types of magazines which include: men, women, news magazines and readers digest.
Readers digest offer its readers a wide array of topics of interests without focussing on a specific readership, gender or group of interests. News magazines offer feature news articles usually on topics that have already been discussed in other news media but in a more in-depth sense. Women’s magazines offer articles of interest to women and men’s magazines offer articles of interest to men. Magazines are further segmented under each section to feature topics of interest from decor to cars.
One of the more successful men’s magazines Playboy will be discussed in this paper, focussing on, what strategy they applied to achieve their global success. The magazine has been in existence for over, 50years and has stood the test of time. This paper will seek to determine what marketing strategies they applied to achieve their global success.
The product life cycle
The product life cycle can be divided into several stages characterised by the revenue generated by the product. A PLC depicts the stages that the product goes through during its life time. The PLC is made up of the following stages:
When the product is introduced, sales will be low until customers become aware of the product and its benefits. Advertising costs are typically high during this stage in order to rapidly increase customer awareness of the product and to target the early adopters. During the introductory stage the firm is likely to incur additional costs associated wit the initial distribution of the product. These higher costs coupled wit low sales volume usually make the introduction stage a period of negative profits. During the introduction stage, the goal is to establish a market and build primary demand for the product class.
The introductory stage comprises of the following marketing mix components:
Price – the price will be generally high, assuming a skim pricing strategy for a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly. In some instances, a penetration pricing strategy is used and introductory prices are set low to gain market share quickly.
Distribution –the distribution is selective and scattered as the firm commences implementation of the distribution plan.
Promotion - it is aimed at building brand awareness. Samples or trials may be directed at early adopters.
This is a stage of rapid revenue growth. Sales increase as more customers become aware of the product and its benefits and additional market segments are...