the service employee is critical to the success of a service business. interaction with employees
strongly influences customers’ perceptions of service quality. internal marketing is based on the
idea that if a company expects its employees to treat customers well, the organization must treat its
employees like valued customers
product life cycle
the product life cycle describes the stages a product goes through in the marketplace.
the first stage of the product life cycle is characterized by growing sales and little profit. the
marketing objective is to promote awareness and stimulate trial. price can be high (skimming) or
low (penetration). the need in this stage is to develop primary demand, a desire for the product
class. selective demand, a desire for a specific brand, occurs later in the life cycle during the
maturity stage. high-definition television (hdtv) and electronic imaging cameras are poised to
enter this stage.
this stage is characterized by a rapid increase in sales and the appearance of competitors. laptop
comuputers and disposable 35mm cameras are in this stage in canada at this stage, the brand
must be differentiated from competitors. distribution is an important element of the marketing
mix in this stage.
the third stage is characterized by a leveling off of sales revenue. profit declines as the marginal
cost of gaining each new buyer is greater than the resulting revenue. promotion is geared to
creating selective demand. stand-alone fax machines are in the maturity stage.
sales and profits are steadily dropping in this stage. companies