Proude Company’s Case: Product Life Cycle

The Proude family sells quality footwear. They specialize in the functional, stylish, and orthopedic types of shoes. It is critical for Proude to apply the Product Life Cycle to determine at what stage the shoes are in the cycle. The PLC has five stages which include the product development, introduction, growth stage, maturity and decline.

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The product development stage is when the store introduced the products in the market. At this stage the shop should use direct marketing, Television and radio advertisements. At the introduction stage, there are no profits and the sales are slow. More Television advertisements, radio and magazine prints should be applicable for marketing. The products gains acceptance at the growth stage and the business can mainly use the customer service and customer reference as the channels for marketing.

The product achieves acceptance at the maturity stage and profits maintain or drop. It is because of intensive marketing to sustain the product in the market against competition. At the decline stage there are very minimal sales and profits keep declining. It is time to stop or minimize the marketing strategies because it is approaching its end in the market. But Proude can reinvigorate the marketing strategies with some promotions to sustain it in the market.

The Growth and Benefits of Direct Marketing

Direct marketing involves Proude’s business dealing directly with carefully selected segments or individual customers. It is like personal selling. Consumers respond immediately and directly due to the one on one communication with them. it is convenient for the buyers and more private. They also have a range of comparisons of the products. It would enhance the customer relationship with the Proude’s business. It also helps to reduce marketing costs.

Sales Promotions

It is the application of short term incentives to enhance the purchase or sale of the shoes in Proude’s shop. They target the consumers who buy the shoes. They involve the cash refunds where Proude’s can offer price reductions after purchases. Proude’s can also cut down cents on the shoes and indicate the reduction on the labels. The shop can also offer premiums at low costs to increase sales. Promotional products can be available for the customers who frequent the shop and one-off buyers. They can include calendars, T-shirts, and key rings. Proude’s can use these promotions and additional ones to boost the sale at the growth stage and at the decline stage.

Personal Selling Processes and Application to Proude’s

Personal selling helps the business to get new customers and enquiries, and ensure they place orders to the business. It involves seven steps. Prospecting is identifying potential buyers. It starts by having many people and narrowing down to the rightful buyers and marketing to them. The preaproach stage involves the salesperson establishing the organizational needs from the customers. It is a preparation moment where one has to gather enough information for the approach. At the approach stage, the salesperson needs to know how make a formal introduction and excite passion in the potential buyer. His or her appearance must be exemplary as the company’s representative. The next step is about presentation and demonstration. There has to be the value presentation of the company and the product.

The salesperson can give critical selling points about the company’s urge to meet the potential buyer’s need. The next item is to describe the product and explain how it affects the needs of buyers positively. The salesperson needs to have good interpersonal skills and communication prowess. It is critical also to know how to handle the customer’s objections at the fifth stage. The salesperson should use a positive approach and seek to know from the buyer if there are questions. At the sixth step, the salesperson closes the sale. It is the time when he or she asks for the specific details of the order form the customer.

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The customer may want some help in filling out the order forms or understanding a few details. The salesperson must be ready to clarify and even provoke the customer through questions to see if there is anything he or she needs to know. The last step is the follow-up where the customer buys the product and the salesperson may want to ensure that the customer is satisfied. The salesperson should clear up any delivery details and nay other pending matters. Proude’s can use these steps to ensure that the salespersons are closely engaged and that the customer ends up being satisfied. Successful selling processes would ensure that Proude’s gets repeat buyers.

Retailing has its ups and downs. During the time when the economy is performing below perceptions most retailers suffer due to buyers cutting down on expenses. But large stores like the McDonald’s use bargain prices and promotions to increase their sales. Today, there are megaretailers growing from the small stores through vertical acquisitions, horizontal mergers, and capital injections. There is also the development of the non-store retailing where customers receive their orders via mail.

They can also place online orders or use phone calls. Proude’s can use this to gain from the customers who may not have the time to visit the shop. it would greatly increase the sales. The direct and online channels can help Proude’s to save on the cost of marketing since online marketing is cheaper. There is also the need for concern for the environment. It has led to the green retailing. Proude’s can use this kind of marketing to ensure that the shop gains more credibility from environmentalists. Major retailers are also expanding globally. Proude’s can also think of going global with the shoes products to enhance its sales capacity.

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