the three ring circus
Diana Alejandra Cañas Cortés
Andrés Felipe Celis Flórez
Strategic Decisión in Marketing
¿Is the three ring circus model apply for all companies?
The product lifecycle have different stages, in these stages we can identify two variables which tell us the differences between them, and these variables are the diversity of product on the market (products with similar characteristics) and uncertainty (of the producer and the consumer).
In the first stage we can locate the product in an environment of low diversity and high uncertainty; this is because the product is poorly known in the market so the consumer it’s only starting to identify its characteristics and creating a relation between them and the needs that the buyer have, so in order to make the market to accept the product the companies need to increase their relation with the costumer and create a support channel to help make them aware of all the capabilities of the product.
In stage two the costumers and the producers fell more comfortable with the product, so the uncertainty it’s reduced because both of them are aware of the reach of the product characteristics, this will increase the product reputation making it more demandable. By this time the companies will identify the need to redirect their efforts from managing the technological uncertainties to managing scale, so they will create new logistics from the suppliers to the final consumer to satisfy the increasing demand. This new supply chain will require an integration of all the process and simultaneously adapt them to the changing environment, and in order to be aware of these changes it would be necessary to create a strong customer service.
In stage three the diversity in the markets its very high because by this time there would be many products with similar characteristics so the market it’s very competitive making the companies to offer special services in order to fulfill unique requirements of the costumers, also in this stage
Andrés Felipe Celis Flórez
Strategic Decisión in Marketing
¿Is the three ring circus model apply for all companies?
The product lifecycle have different stages, in these stages we can identify two variables which tell us the differences between them, and these variables are the diversity of product on the market (products with similar characteristics) and uncertainty (of the producer and the consumer).
In the first stage we can locate the product in an environment of low diversity and high uncertainty; this is because the product is poorly known in the market so the consumer it’s only starting to identify its characteristics and creating a relation between them and the needs that the buyer have, so in order to make the market to accept the product the companies need to increase their relation with the costumer and create a support channel to help make them aware of all the capabilities of the product.
In stage two the costumers and the producers fell more comfortable with the product, so the uncertainty it’s reduced because both of them are aware of the reach of the product characteristics, this will increase the product reputation making it more demandable. By this time the companies will identify the need to redirect their efforts from managing the technological uncertainties to managing scale, so they will create new logistics from the suppliers to the final consumer to satisfy the increasing demand. This new supply chain will require an integration of all the process and simultaneously adapt them to the changing environment, and in order to be aware of these changes it would be necessary to create a strong customer service.
In stage three the diversity in the markets its very high because by this time there would be many products with similar characteristics so the market it’s very competitive making the companies to offer special services in order to fulfill unique requirements of the costumers, also in this stage