market saturation

Examples of market saturation in the following topics:

• Maturity

  • During the maturity stage, sales will peak as the product reaches market saturation, and competition will grow increasingly fierce.
  • Competitors' products will begin to cut deeply into the company's market position and market share.
  • Demand for the product ultimately decreases due to competition and market saturation, as well as new technologies and changes in consumer tastes.
  • Brand differentiation and feature diversification is emphasized to maintain or increase market share
  • Identify the market conditions of a product in stage 3, maturity of the product life cycle.

• The economic environment

  • The key to understanding market opportunities lies in the evaluation of the stage of a nation's economic growth.
  • Usually, the most significant marketing opportunities exist among the industrialized nations, as they have high levels of income, one of the necessary ingredients for the formation of markets.
  • However, most industrialized nations also have stable population bases, and market saturation for many products already existing.
  • Marketers in such nations must be educators, emphasizing information in their market programs.
  • As the degree of economic development increases, so does the sophistication of the marketing effort focused on the countries.

• Local, regional, national, international, and global marketers

  • Local marketers are concerned with customers that tend to be clustered tightly around the marketer.
  • Naturally, the total potential market is limited.
  • As the US market becomes more and more saturated with US-made products, the continued expansion into foreign markets appears inevitable. greatly affect a strategy's outcome.
  • As the US market becomes more and more saturated with US-made products, the continued expansion into foreign markets appears inevitable.
  • Global marketing differs from international marketing in some very definite ways.

• Ansoff Opportunity Matrix

  • Product development (existing markets, new products): McDonald's operates in the fast-food industry, but it frequently markets new types of burgers.
  • Marketing penetration - This growth strategy uses current products and current markets with the goal to increase market share.
  • Market development - This growth strategy uses existing products to capture new markets.
  • While market penetration may come with the lowest risk, at some point the company will reach market saturation with the current product and will have to switch to a new strategy, such as market development or product development.
  • Market development targets non-buying customers in currently targeted segments.

• Branding Strategies

  • A branding strategy helps establish a product within the market and to build a brand that will grow and mature in a saturated marketplace.
  • A branding strategy helps establish a product within the market and to build a brand that will grow and mature in a saturated marketplace.
  • For example, Intel, positions itself in the PC market with the slogan (and sticker) "Intel Inside. "
  • Frequently, the product is no different than what is already on the market, except it has a brand name marking.
  • Alternatively, in a very saturated market, a supplier can deliberately launch totally new brands in apparent competition with its own existing strong brand (and often with identical product characteristics) to soak up some of the share of the market.

• Reasons for entering international markets

  • Many marketers have found the international marketplace to be extremely hostile.
  • A study by Baker and Kynak, for example, found that less than 20 per cent of firms in Texas with export potential actually carried out business in international markets.
  • Kaynak, "An Empirical Investigation of the Differences Between Initiating and Continuing Exporters," European Journal of Marketers, Vol. 26, No.3, 1992. ) But although many firms view in markets with trepidation, others still make the decision to go international.
  • In one study, the following motivating factors were given for initiating overseas marketing involvement (in order of importance): (S.
  • These include the saturation of the domestic market, which leads firms either to seek other less competitive markets or to take on the competitor in its home markets; the emergence of new markets, particularly in the developing world; government incentives to export; tax incentives offered by foreign governments to establish manufacturing plants in their countries in order to create jobs; the availability of cheaper or more skilled labor; and an attempt to minimize the risks of a recession in the home country and spread risk.

• Marketing Orientation

  • Kohli in the "Journal of Marketing", marketing orientation is the, "The organization-wide generation of market intelligence pertaining to current and future customer needs, dissemination of the intelligence across departments and organization wide responsiveness to it. "
  • Following the second world war, it soon became obvious that products were not selling as easily as during the Industrial era due to a saturated market.
  • Marketing-oriented companies revolve around internal business processes that gather, synthesize, and package market intelligence into integrated marketing communications programs (i.e., advertising campaign, new product launch, promotional offer, etc.).
  • Competitive analysis is also a significant component of market orientation.
  • Since its introduction, marketing orientation has been reformulated and repackaged under numerous names including customer orientation, marketing philosophy, and customer intimacy.

• Stages in the Product Life Cycle

  • Nonetheless, sales may remain low because it takes time for the market to accept the new product.
  • Other competitors enter the market with alternative solutions, making competition in the market fierce.
  • The company that introduced the new product may begin to find it difficult to compete in the market.
  • In the decline stage of the product life cycle, sales will begin to decline as the product reaches its saturation point.
  • The market will see the product as old and no longer in demand.

• The Diffusion of Innovation

  • Marketers are particularly interested in the diffusion process as it determines the success and failure of any new product introduced in the market.
  • Thus, it is quite important for a marketer to understand the diffusion process so as to ensure proper management of the spread of the new product or service.
  • With successive groups of consumers adopting the new technology (shown in blue), its market share (yellow) will eventually reach the saturation level.

• Promotional Objectives

  • There are three main promotional objectives: inform the market, increase demand, and differentiate a product.
  • The promotion mix is an element of the marketing mix.
  • Eventually a product will reach its saturation point, at which time investing in sales will decrease as the company focuses its attention on a new product.
  • Information about the product will differ depending on the specific target market.
  • In order for a market to accept a new product they need to know how it address their pain point.