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Hi, need to submit a 1000 words essay on the topic 7.Use extended examples to compare and contrast the characteristics of a growing and a mature product market. Discuss how different product market ph
Hi, need to submit a 1000 words essay on the topic 7.Use extended examples to compare and contrast the characteristics of a growing and a mature product market. Discuss how different product market phases affect a companys cost recovery.
Page 74. 2002). Every economic entity or product market has its own typical variables. As Jack Welch sums it up, “Every job you take is a gamble that could increase your options or shut them down.”(2005. Page 264).
On this “drive to maturity” (Rostow.2008.Page 9), the various stages of development are characterized by different features, both qualitative as well as quantitative. When the market is growing, or emerging as the jargon puts it, there is hectic industrial activity, growth rates aim higher, profit margins are low and investment multipliers are in great demand, since there is an increasing need for plough back. There is a high appetite for investment, impacting the rates of interest. Labour costs are low, non renewable natural resources are abundant, and economic activity mainly uses natural resources. Often, a growing market is characterized by a higher degree of inflation than a mature market.
The growing market manifests high potential for volume growth since it addresses first time users to a great extent. There is high appetite for products, and entrepreneurs and marketers use the opportunity for test marketing, new product launches, preference- indifference surveys and market research to arrive at optimum product offerings. There is potential to grow both horizontally and vertically- which means that expansion of user base through market penetration and per capita volume growth, both are possible in a growing market. Population grows at a faster rate than in mature markets. Market penetration and development of upcountry markets requires ongoing infrastructural development, which again, is an essential feature of an emerging or growing market. Environmental concerns start to raise their ugly head, but are put on the backburner mostly.
It would be interesting to discuss the car industry category while
