Marketing Strategies for SMEs Based on Product Life Cycle

Introduction:

The journal article I've chosen for my assignment is the "MARKETING STRATEGIES OF SMEs PREDICATED ON PRODUCT LIFE CYCLE - A REPORT AMONG SMEs IN KOSOVO" by Professor Bekim Marmullaku taken from the International Journal of Economics, Business and Management posted in the United Kingdom on 9th September 2015 (http://ijecm. co. uk/wp-content/uploads/2015/09/3937. pdf). The article has given me a distinctive insight in to the practical aspects of marketing strategy implementation in a genuine world context. It includes helped demonstrate various instances of convergence as well as divergence from the marketing concept studied in course from the practical circumstances encircling strategy implementation. It offers systematically from our understanding of the Product Life Routine Model (PLC), which as explained in the paper is widely adopted by the Small-Medium Enterprises (SMEs) of Kosovo, and analyses its stage by stage execution and management in this real-life setting up.

Key Factors of the Article

The paper develops after theory and switches into the use of marketing models generally and the PLC model in specific, in marketing strategies implemented by SMEs in Kosovo. As per theory, we review the PLC almost as an industry standard among the visible frameworks in marketing that influences strategy. The model in principal dwells down to the various periods a product undergoes (body 1) following product development and commercialisation. As traditional PLC theory specifies the phases as introduction, development, maturity and decrease; Professor Marmullaku studies these specific stages in the framework of their sensible implications for SMEs in Kosovo. The advantages stage is exclusive in that it is the stage subject to the most difficulties in strategy execution. Marmullaku analyses that SMEs at this stage are most susceptible as it is the point where the product has been investment intensive and not as yet churning over all the dividends. Therefore for SME's that do not have as deep pouches, the smallest bottom out of series can deem to be critically damaging for the business. He argues the lack of innovation is unable to win the marketers and the overall environment is not conducive enough in Kosovo to propagate great likelihood of success at this stage of marketing. This is courtesy of a number of socio-political and financial conditions like the insufficient financial capital, malpractices, market specific circumstances and other exterior factors. Professor Marmullaku explains the marketplace specific dynamics of the copy-cat culture amongst Kosovo SMEs has specifically impacted online marketing strategy implementation. The premature reduction of the costs incurred by the SME products in the progress period of the PLC is a direct result of this as well as other competition from larger firms operating at better economies of level. This is usually coupled with premature product development response by SMEs in a anxious bid to identify and retain revenue because imitators are quick to release substitutes. Also, the difficulty in practice in accurately identifying the very phase of the PLC the merchandise is going through further exasperates the issue. Furthermore, sticking with theoretical targets of strategy when products are at maturity, Marmullaku talks about that SMEs in Kosovo that are seriously interested in the product and the business enterprise continue to keep advertising costs even at this time in a bet to keep market share to hold to customer foundation whilst others present in this market tend to leave with the slipping profits. The writer argues that by the time the decline phase arrives, most businesses in Kosovo don't possess much hunger for prolonging the products. Just a few SMEs that are dominant and also have the financial might may indulge in tampering with the marketing mix further but not to a big extent because of the specific socio-economic and politics hurdles in Kosovo including factors including the availability of technology; the absorption potential of the overall market; as well as other critical external factors.

The Rationale for Selecting this Newspaper and its Contribution to MARKETING CONCEPT and Practise

The rationale for selecting this paper is in process so it systematically puts a context to the PLC theory we examined in class and analyses it. It illustrates the application of the PLC model in a real-life setting, its successes as well as its failures, how it is pertinent and what extent it is not.

One's knowledge of marketing and the PLC model matures a good deal after scanning this paper as one learns to appreciate that we now have a host of impediments in real life setting as every situation differs. Textbook models and theory do have a tendency to be idealistic however give a general sense of the ideal solution about.

In practise, Teacher Marmullaku's work indicates how marketing strategies aren't homogenous in the way they are integrated by firms across different physical markets. For instance, he says how it is not uncommon for firms in Kosovo to latch onto one marketing strategy model like the Product Life Pattern Model rather than pay sway to other theoretical tools used in more advanced markets. This is rule can ignite ones understanding of market to market dynamics on a case to state basis. Yoon wrote a great part in the Harvard Business Review (HBR) in which he whilst appreciating the deferring dynamics of different market segments explained more emphasis in strategy be positioned on demand as opposed to the demographics when specifically providing to the culture of the different markets (Eddie Yoon, 2015).

Marmullaku implies the pivotal role of innovation in PLC management and its own absence thereof in the environment of Kosovo inhibits marketing insurance plan. The need for innovation in handling the PLC is also distributed by the works of other research in marketing. It strains that the changing flavour of consumers in the many product offer levels across the pattern can be held into check by creativity (Gecevska, et al. , 2010).

The availability and access to technology is argued to be pivotal in taking care of the PLC as it aids innovation. The absence of this as seen in Kosvo can also perverse the very course of something takes through the PLC. Technology therefore as a facilitator of product development and hence also PLC management is essential. Research in marketing has gone some way to understand how technological innovations have simplified and sped up the procedure in the product development model (Morrel, 2015).

Marmullaku's focus on the value of businesses being financially sensible in successfully executing a marketing strategy across the several periods is also enlightening. This is stressed as an essential component of success specifically in the original vulnerable introduction levels where the organization would have invested in the new product development levels.

It is also implied how the general laws and order as well as property privileges as exterior factors are instrumental in marketing policy implementation. The "me too. . " culture in Kosovo is a primary example of this where in fact the absence of patent coverage forms market that's not conducive to online marketing strategy implementation. As explained by Professor Marmullaku, it harms the online marketing strategy adopted by businesses to the amount of forcing early policy that is not in theoretical accordance to the level the product reaches in the PLC. The writ of regulations and patents therefore in developed markets are used of a means of credible deterrence and go hand in hand with facilitating marketing goal ends (Russ Krajec, n. d. ).

Furthermore Professor Marmullaku's gratitude of the range of marketing strategy being limited by the type of the specific market including however, not limited to its absorption potential and the amount of international trade is specially insightful. This is not to say that the specifics of this business such as its size and its location do not too play a crucial role.

Professor Marmullaku sheds light on the issue in practically evaluating the effects of different marketing strategies in the long-term. However it is interesting to notice as Dhalla stated decades back in the HBR of the then future development of new econometric approaches for use in marketing to evaluate the secluded effects of advertising and its own payoffs over time (Dhalla, 1978). These techniques in this point in time are now generally deployed in many facets of strategy building such as using marketing mixture modelling (Market Research Consulting, 2013) though in a natural way one would not expect such tools to be used because of the restrictions in less developed markets as is the case in Kosovo.

Finally, Teacher Marmullaku's advice of implementing a online marketing strategy of focussing on specific products as well as differentiating ways of change from copy-cat competition is innovative. This plan in concept can be replicated in virtually any relatively undisciplined market environment of the type within Kosovo as a means of circumventing the obstacles the PLC encounters.

Conclusion

Professor Marmullaku's work provided an invaluable insight in placing theory into framework. It illustrates the application of the PLC in Kosovo that diverges from idealistic textbook cases. His work particularly increases ones appreciation of the critical impact of external market characteristics stemming from the socio-political and financial context on the success of marketing strategy. One can eliminate that the application of online marketing strategy should be personalized to certain requirements of market on a circumstance to reason basis and since mentioned he has come up with a range of viable recommendations to the effect in his research of SMEs in Kosovo.

References

Anon. , 2011. Product Life Pattern Periods. [Online]

Available at: http://productlifecyclestages. com/wp-content/uploads/2011/08/product-life-cycle-stages. jpg

Dhalla, N. K. , 1978. Assessing the Long-Term Value of Advertising. Harvard Business Review.

Eddie Yoon, 2015. The Blunder Companies Make When Marketing to Different Civilizations. Harvard Business Review.

Gecevska, V. et al. , 2010. Product lifecycle management through progressive and competitive business environment. Journal of Industrial Anatomist and Management.

Market Research Consulting, 2013. Econometrics in marketing blend modelling. [Online]

Available at: http://www. marketscienceconsulting. com/econometrics-in-marketing-mix-modelling/

Morrel, L. , 2015. Technology could speed up new product development. marketingtechnew, 1 Dec.

Russ Krajec, n. d. Advertising and Marketing Uses for Patents and the Deterrent Factor. [Online]

Available at: http://krajec. com/advertising-and-marketing-uses-for-patents-and-the-deterrent-factor/

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