Introduction:

The modern business manager operates in more dynamic and turbulent environment. The change in
the environment has been rapid and unpredictable. Economic variables have been complex both in form
and impact on the practice of business in Nigeria. Consumers and clients have been showing complex
behaviors both in local and international markets. The most dramatic change has been that exhibited by
competitive pressures. Competitors have been applying one strategy or the other to adapt to the
dynamic and unpredictable nature of the business environment. The dynamic environment in which a
business operates provides opportunities for it to grow develop and create value and wealth. It also
poses some threats to the business. The primary concern is how the business affects people and natural
environment as it produces and sells products necessary to satisfy customers, stakeholders and other
constituents. By building key stakeholder relationships among government agencies, consumer entities,
environmental groups and other constituents, a business can anticipate and manage issues and
concerns that might otherwise have gone undetected until they had grown into major problems (Rainey,
2008). These entail conscientious analysis of both external and internal environment by the business.
Businesses are faced with challenges of social considerations which focus on specific issues that relate to
their activities and transactions with employees, customers, shareholders, suppliers, etc. Further, social
considerations include protecting the health and safety of the general population, avoiding harm to the
natural environment, developing and deploying ethical standards and practices, meeting cultural and
social norms, balancing interest of the business with the interests of the society, and being a proactive
entity (Rainey, 2008). Political considerations are also of significant relevance as they have direct impact
on the functioning and success of the business. Political and regulatory changes are usually
manifestations of the social and economic conditions and issues. Equally of primary concern to the
businesses, their customers and stakeholders are economic considerations which often focus on the
direct effects of the exchange of goods and services, the flow of money and the relationships between
the participants. Customers are either satisfied, dissatisfied or have a neutral opinion (KPN Report,
2007).

Economic considerations also cover indirect implications of economic activities such as hidden costs of
transactions and the externalities borne by the society. In this regard, the most crucial economic
questions often pertain to environmental-related impacts. Usually, they are some of the multifaceted
negative and unintended outcomes of products, processes and operations. The foregoing implies that
the environment of a business is the pattern of all the external and internal conditions and influences
that affect its life, growth and development. Consequently, since growth and development through
conspicuous industry and market positions are central to mission statement and vision of a thriving
business, it is onerous on the corporate strategist to keep abreast with the factors of the business
environment and the evolving trends of their features over time. In nature, the environmental factors
and their influences are economic, political-legal, sociocultural and technological. Since strategy
formulation process incorporates futuristic tendencies in terms of business environment, business
executives who simulate the process must be conversant with such factors in the environment,
especially the external environment, which can potentially and significantly exert effects on their
business and its future. This paper is an attempt at appraising the external and internal environments of
a typical business entity in Nigeria, with the generic objective of establishing the relative significance of
the environments to business strategic management process. In the pursuit of this and other objectives,
the following questions will be addressed, among others: What constitutes the external environment of
a business? What are the peculiar features and driving forces? What constitutes the internal
environment of a business? What are the unique features and driving forces? Which of these
environments bears more relevance to strategic management process of a business entity? What
specific environmental factors constrain growth and development of businesses in Nigeria? What
measures are needed to enhance business activities in Nigeria? The paper is structured into five
sections. Following this introduction is section two which is conceptual clarification and literature
review/theoretical framework. Section three discusses business environments and factors. Section four
dwells on appraisal, pointing out the implications, of external and internal environmental factors to
survival, growth and development of a business in relation to its mission statement, vision and the drive
for prominence in industry and market place, while section five concludes the paper and proffers
appropriate recommendations.

Conceptual Clarification and Literature Review/Theoretical Framework The environment of a business is

the aggregation of the pattern of all the external and internal conditions and influences that affect the
existence, growth and development of the business. Analysis of business environment is the
examination and appraisal of the opportunities and threats provided by the environment as well as the
potential strengths and weaknesses the business possesses. Opportunities and threats are associated
with external environment of a business while strengths and weaknesses are associated with internal
environment of the business. Consequently, external analysis examines opportunities and threats that
exist in the environment while internal analysis examines strengths and weaknesses within the business.
Both opportunities and threats exist independently of the firm. If an issue would exist when a given
business did not exist, then such an issue must be a factor in the external environment; otherwise, it is
an internal environmental factor. Alternatively, an issue is an external environmental factor if it coexists
with a business but the business cannot control or influence the issue. Opportunities are favorable
conditions in the external environment that could produce rewards for the organization if acted upon
properly. That is, they exist but must be acted on if the business is to benefit from them. Threats are
conditions or barriers that may prevent the business unit from reaching its objectives. Several studies
have attempted to analyse or appraise the effects of environmental factors on various aspects of
business organizations. These include Narver and Slater (1990); Jaworski and Kohli (1993); Nwokah
(2008). Norzalita and Norjaya (2010), investigated the role of the external environment in the market
orientationperformance linkage among SMEs in the agro-food sector in Malaysia and found that
markettechnology turbulence and competitive intensity did not moderate the relationship between
market orientation and business performance. Pulendran, Speed and Widing (2000) observe that the
external environment in which organizations operate is complex and constantly changing; a significant
characteristic of the ext e rna l environment is compe tition. Organizations that recognize the presence
and intensity of competition have a greater tendency to seek out information about customers for the
purpose of evaluation and to use such information to their advantage (Slater and Narver, 1994).
Recognition of the threat from competition drives business organizations to look to their customers for
better ways to meet their needs, wants, and thereby enhances organizational performance (Bhuian,
1997). Accordingly, when competition is perceived as a threat by the organization, there is a greater
tendency to adopt a market orientation (Pulendran et al.,2000). There has been a long tradition of
support for the assumption that environmental factors influence the effectiveness of organizational
variables (Appiah-Adu, 1998). Indeed, several studies have investigated the association between
different environmental factors and established the effects of moderating influences on organizational
variables (e.g., Slater and Narver,1994; Jaworski and Kohli, 1993; Greenley, 1995 and Han, Kim and
Srivastava, 1998). Researchers have argued that firms should monitor their external environment when
considering the development of a strong marketoriented culture (Kohli and Jaworski, 1990). To
determine the influence of the external environment on business performance in transition economies,
Golden et al. (1995), as cited in Appiah-Adu (2998), examined four factors: demand changes, product
obsolescence, competitive pressures and product technology. These variables appear to mirror,
respectively, four external factors, namely market growth - demand, market turbulence, competitive
intensity and technological turbulence, which were identified as p o t e n t i a l mo d e r a t o rs o f t h e
ma r k e t orientation–performance link by Kohli and Jaworski (1990). In a study on the impact of
external environment and self-serving motivation on physician's organizational citizenship behaviours,
Ming-Chang and Tzu-Chuan (2006) found that external environment does not have significant impacts
on job satisfaction, but does have significant negative effect on organizational citizenship behaviours.
They also found out that self-serving motivation and job satisfaction also have positive effects on
organizational citizenship behaviours, and that the meditative effect of job satisfaction is also significant.
In a related study, Ghani, Nayan, Izaddin, Ghazali, Shafie Nayan (2010) analysed the critical internal and
external factors that affect firms strategic planning in Malaysia. The internal and external factors
examined in their study included strengths, weaknesses, opportunities and threats. They also analysed
some dimensions that represented these variables. Their study showed that firm's strengths are related
to their financial resources and the weaknesses are related to the firms' management. The study further
revealed that the external factors which become opportunities to the firms are support and
encouragement from the government, and that threats are the bureaucratic procedures that firms have
to face in order to get plan approval and certificate of fitness. Thus, they emphasized that while firm's
internal analysis is important to identify its strengths and weaknesses, its external analysis is important
in order to identify current and future threats and opportunities, know its position and performance so
that it can plan, compete and stay in business.

3. Business Environments and Factors In analyzing and appraising Nigeria business environments and
factors, we adapt the SWOT Matrix used by Wheelen Hungar (2010). The SWOT Matrix analysis
technique combines firm's internal and external environments and their factors and, thus, helps
visualize the analysis of business environment and enhance understanding of how environmental factors
work together, culminating in the synthesis that when a business entity matched internal strengths to
external opportunities, it creates core competencies in meeting the needs of its customers, and
emphasizes that business should act to convert internal weaknesses into strengths and external threats
into opportunities. However, we anchor detail analysis of external environment on PESTLE Model
SWOT MATRIX

INTERNAL EXTERNAL
STRENGTH OPPORTUNITIES
WEAKNESS TREATS

External Environment and its Factors (PESTLE Analysis Model) The external environment of a business
consists of a set of conditions and influences outside the business but which shape the life and
continued existence of the business. These conditions and influences are outside the firm as a business
unit, but which effect changes in the organization and the business entity cannot control but only
adjusts to them. The elements of the business external environment constitut e the ext e rna l
environmental factors. Since strategy formulation is futuristic, it is pertinent for strategic managers to
keep abreast with the external environmental factors and align their strategic processes with the
dynamism of such external factors. The external environmental factors can be captured with the
acronym PESTLE. This describes a framework of macroenvironmental factors used in the environmental
scanning component of strategic management (www.wikipedia.org). Therefore, in this paper, analysis of
external environment and its factors is referred to as PESTLE Analysis Model, where: PPolitical Factors;
EEconomic Factors; S Social Factors; TTechnological Factors; LLegal Factors; and EEcological Factors.
Political Factors: These entail the extent and process of government direct or indirect intervention and
influence on businesses in an economy. Specifically, political factors include such areas as tax policy,
labour law, environmental law, trade restrictions, tariffs, incentives, other encouragements and political
stability. Political factors may also include goods and services which the government wants to provide or
be provided (merit goods) and those that the government does not want to be provided (demerit goods
or merit bads). Furthermore, governments have great influence on the health, education, and
infrastructure of a nation Economic Factors: These includes, exchange rate, unemployment, demand
and supply trend, economic growth, lending rates, exchange rates and the inflation rate. These factors
have major impacts on how businesses operate and make decisions. For example, lending rates affect a
firm's cost of capital and therefore the extent to which a business grows and expands. Exchange rates
affect the costs of exporting goods and the supply and price of imported goods in an economy. Social
Factors: These are the cultural aspects and include health consciousness, population growth rate, age
distribution, career attitudes and emphasis on safety nets. Trends in social factors affect the demand for
a company's products and how that company operates. For example, an aging population may imply a
smaller and lesswilling workforce (thus increasing the cost of labour); government enhanced social
insurance scheme may increase the demand for insurance services in a country. Furthermore,
companies may change various management strategies to adapt to these social trends (such as
recruiting older workers). Technological Factors: This component of external environment includes
technological aspects such as Research and Development (R&D) activity, automation, technology
incentives and the rate of technological change. They can determine barriers to entry, minimum efficient
production level and influence outsourcing decisions. Technological shifts can affect costs, quality, and
stimulate further invention, innovation and competition. Legal Factors: Included in this component are
discrimination law, consumer law, antitrust law, environmental law which result to the establishment of
(NESERA), employment and labour law, and health and safety law. These factors can affect how a
company operates, its costs, and the demand for its products. Ec o l o g i c a l Fa c t o r s: Th e s e i n c l u
d e environmental aspects such as weather, climate, and climate change, drought; earthquake, and
erosion which may affect industries like tourism, farming, and insurance. Growing awareness of the
potential impacts of climate change is affecting how companies operate and the products they offer,
both creating new markets and diminishing or destroying existing ones. Internal Environment and its
Factors (SWOT Analysis Model) The internal environment of a business consists of a set of conditions,
influences and elements within the business which are directly controlled and influenced by
management of the business to shape the life and continued existence of the business in the direction of
attainment of organizational goals and objectives. These conditions and influences are within the firm as
a business unit, and it can control them. The elements of the business internal environment constitute
the internal l environmental factors. Essentially, they are the employee attitudes, new equipment,
processes, strategy, work environment, etc., which are encapsulated in the strengths and weaknesses of
the business. The organization has the control of these matters because they happen within the
organization unlike external environmental factors. Thompson and Strickland (2001) state that
“Developing strategies is one of the tasks needed to achieve unity and coherence between the firm's
internal ability, sources and skills with the external factors which are related to the firm”. In line with
this, David (1999) submits that any strategic should match firm's strengths and weaknesses with the
surrounding to identify the best effective alternative strategy to be implemented. Therefore, the SWOT
analysis technique can be explored to enhance firm's strengths and weaknesses so as to prepare for
threats and opportunities provided by the external environment. In this subsection, however, the thrust
is on the internal environment of a business and its factors analyzed within the framework of Strength,
Weaknesses, Opportunities and Threats (SWOT) Matrix Analysis Model. Information regarding firm's
strengths and weaknesses is generated from within the firm itself. Therefore, we emphasize strengths
and weaknesses here as the aggregate components of internal environmental factors of a business
entity, though SWOT analysis technique combines firm's internal and external environments and their
factors. A firm's internal analysis involve examination and appraisal of such factors as its m a n a g e m e
n t , m a r k e t in g , f in a n c e , operational/production and human resource. Ghani et al (2010) identify
strength variables or factors of the business entity to include: Experienced and skillful work force
(Paulson, Fondahl and Parker, 1992): This enhances rational decisions and fulfillment of project
requirement (Abdul and Abdul, 1999). Feasible Objectives: The business should have achievable strong
short and long term objectives, and strategic managers could analyze the performance of any projects
undertaken and at the same time plan for potential future development projects.

CONCLUSIVELY:

This paper has analysed and appraised business external and internal environments, with specific
reference to the Nigerian business environment. The analysis has shown that both external and internal
environmental factors exert influence on and shape the life, growth and development of the business. It
has also shown that external environment and its factors bear more relevance to business strategic
management. Specifically, the analysis has shown that businesses have no direct control or influence
over their external environment, unlike their internal environment. Therefore, strategic management
skill and expertise are sine quo none to appropriate and rewarding analysis of external environment if a
business must successfully explore opportunities provided by the environment to achieve its mission
goal in the face of threats inherent in the environment. At present, the government plays more of
regulatory role in the business environment in some sectors of the economy, without direct intervention
or involvement in economic enterprises. Although, certain measures have been put in place at various
levels to engender conducive business environment for private sector participation, the paper notes that
certain external environmental factors such as multiple tax system, policy summersault, non-passage of
the Freedom of Information (FOI) Bill into law, high cost of capital, high interest and inflation rates,
volatile exchange rates, infrastructure decay, dismal power supply, etc., escalates cost of doing business
in Nigeria and, thus, poses a serious threat to business firms and industries. The analysis further
revealed that while many business organizations had leveraged on their strengths and explored
opportunities in their external environment, many more were overwhelmed by their weaknesses and,
thus failed before the growth and maturity stage, with the attendant implication that many small and
medium scale enterprises do not grow, develop and transform into large and mega scale corporate
businesses. Weaknesses have also obliterated many incorporated businesses into oblivion, even after
attaining growth and maturity stages. Among such weaknesses or negative internal factors are
mediocrity, influence of culture on business ethics, short term business horizon resulting from poor risk
attitude, inadequate financial resources and sharp practices; all culminating to management
incompetence, inefficiency and strategic management misalignment. Consequently, this paper
recommends for reconsideration of such environmental factors that impose unnecessary constraints on
businesses in Nigeria. Specifically, multiple tax system should be jettisoned; exchange rate stability
should be pursued; the passage of Freedom of Information Bill into law should be hastened;
infrastructure, especially electricity, should be strengthened. Businesses should minimize their
weaknesses by paradigm shift from internal factors that weaken management inefficiencies.

MARKETING SEVEN P’s

Once you've developed your marketing strategy, there is a "Seven P Formula"

you should use to continually evaluate and reevaluate your business activities.
These seven are: product, price, promotion, place, packaging, positioning and
people. As products, markets, customers and needs change rapidly, you must
continually revisit these seven Ps to make sure you're on track and achieving the
maximum results possible for you in today's marketplace.

Product
To begin with, develop the habit of looking at your product as though you were
an outside marketing consultant brought in to help your company decide
whether or not it's in the right business at this time. Ask critical questions such
as, "Is your current product or service, or mix of products and services,
appropriate and suitable for the market and the customers of today?"

Whenever you're having difficulty selling as much of your products or services

as you'd like, you need to develop the habit of assessing your business honestly
and asking, "Are these the right products or services for our customers today?"

Is there any product or service you're offering today that, knowing what you
now know, you would not bring out again today? Compared to your
competitors, is your product or service superior in some significant way to
anything else available? If so, what is it? If not, could you develop an area of
superiority? Should you be offering this product or service at all in the current
marketplace?

Prices

The second P in the formula is price. Develop the habit of continually

examining and reexamining the prices of the products and services you sell to
make sure they're still appropriate to the realities of the current market.
Sometimes you need to lower your prices. At other times, it may be appropriate
to raise your prices. Many companies have found that the profitability of certain
products or services doesn't justify the amount of effort and resources that go
into producing them. By raising their prices, they may lose a percentage of their
customers, but the remaining percentage generates a profit on every sale. Could
this be appropriate for you?

Sometimes you need to change your terms and conditions of sale. Sometimes,
by spreading your price over a series of months or years, you can sell far more
than you are today, and the interest you can charge will more than make up for
the delay in cash receipts. Sometimes you can combine products and services
together with special offers and special promotions. Sometimes you can include
free additional items that cost you very little to produce but make your prices
appear far more attractive to your
Customers.

In business, as in nature, whenever you experience resistance or frustration in

any part of your sales or marketing plan, be open to revisiting that area. Be open
to the possibility that your current pricing structure is not ideal for the current
market. Be open to the need to revise your prices, if necessary, to remain
competitive, to survive and thrive in a fast-changing marketplace.

Promotion

The third habit in marketing and sales is to think in terms of promotion all the
time. Promotion includes all the ways you tell your customers about your
products or services and how you then market and sell to them.

Small changes in the way you promote and sell your products can lead to
dramatic changes in your results. Even small changes in your advertising can
lead immediately to higher sales. Experienced copywriters can often increase
the response rate from advertising by 500 percent by simply changing the
headline on an advertisement.

Large and small companies in every industry continually experiment with

different ways of advertising, promoting, and selling their products and services.
And here is the rule: Whatever method of marketing and sales you're using
today will, sooner or later, stop working. Sometimes it will stop working for
reasons you know, and sometimes it will be for reasons you don't know. In
either case, your methods of marketing and sales will eventually stop working,
and you'll have to develop new sales, marketing and advertising approaches,
offerings, and strategies.

Place

The fourth P in the marketing mix is the place where your product or service is
actually sold. Develop the habit of reviewing and reflecting upon the exact
location where the customer meets the salesperson. Sometimes a change in
place can lead to a rapid increase in sales.

You can sell your product in many different places. Some companies use direct
selling, sending their salespeople out to personally meet and talk with the
prospect. Some sell by telemarketing. Some sell through catalogs or mail order.
Some sell at trade shows or in retail establishments. Some sell in joint ventures
with other similar products or services. Some companies use manufacturers'
representatives or distributors. Many companies use a combination of one or
more of these methods.

In each case, the entrepreneur must make the right choice about the very best
location or place for the customer to receive essential buying information on the
product or service needed to make a buying decision. What is yours? In what
way should you change it? Where else could you offer your products or
services?

The fifth element in the marketing mix is the packaging. Develop the habit of
standing back and looking at every visual element in the packaging of your
product or service through the eyes of a critical prospect. Remember, people
form their first impression about you within the first 30 seconds of seeing you or
some element of your company. Small improvements in the packaging or
external appearance of your product or service can often lead to completely
different reactions from your customers.

With regard to the packaging of your company, your product or service, you
should think in terms of everything that the customer sees from the first moment
of contact with your company all the way through the purchasing process.

Packaging refers to the way your product or service appears from the outside.

Packaging also refers to your people and how they dress and groom. It refers to
your offices, your waiting rooms, your brochures, your correspondence and
every single visual element about your company. Everything counts. Everything
helps or hurts. Everything affects your customer's confidence about dealing with
you. As a result, every salesperson was required to look like a professional in
every respect. Every element of their clothing-including dark suits, dark ties,
white shirts, conservative hairstyles, shined shoes, clean fingernails-and every
other feature gave off the message of professionalism and competence. One of
the highest compliments a person could receive was, "You look like someone
from IBM."

Positioning
The next P is positioning. You should develop the habit of thinking continually
about how you are positioned in the hearts and minds of your customers. How
do people think and talk about you when you're not present? How do people
think and talk about your company? What positioning do you have in your
market, in terms of the specific words people use when they describe you and
your offerings to others?

In the famous book by Al Reis and Jack Trout, Positioning, the authors point
out that how you are seen and thought about by your customers is the critical
determinant of your success in a competitive marketplace. Attribution theory
says that most customers think of you in terms of a single attribute, either
positive or negative. Sometimes it's "service." Sometimes it's "excellence."
Sometimes it's "quality engineering," as with Mercedes Benz. Sometimes it's
"the ultimate driving machine," as with BMW. In every case, how deeply
entrenched that attribute is in the minds of your customers and prospective
customers determines how readily they'll buy your product or service and how
much they'll pay.

Develop the habit of thinking about how you could improve your positioning.
Begin by determining the position you'd like to have. If you could create the
ideal impression in the hearts and minds of your customers, what would it be?
What would you have to do in every customer interaction to get your customers
to think and talk about in that specific way? What changes do you need to make
in the way interact with customers today in order to be seen as the very best
choice for your customers of tomorrow?

People

The final P of the marketing mix is people. Develop the habit of thinking in
terms of the people inside and outside of your business who are responsible for
every element of your sales, marketing strategies, and activities.

It's amazing how many entrepreneurs and businesspeople will work extremely
hard to think through every element of the marketing strategy and the marketing
mix, and then pay little attention to the fact that every single decision and policy
has to be carried out by a specific person, in a specific way. Your ability to
select, recruit, hire and retain the proper people, with the skills and abilities to
do the job you need to have done, is more important than everything else put
together.
MARKETING RESEARCH

What Is Market Research?

Market research is the process of determining the viability of a new service or
product through research conducted directly with potential customers. Market
research allows a company to discover the target market and get opinions and
other feedback from consumers about their interest in the product or service.

This type of research can be conducted in-house, by the company itself, or by a

third-party company that specializes in market research. It can be done through
surveys, product testing, and focus groups. Test subjects are usually
compensated with product samples and/or paid a small stipend for their time.
Market research is a critical component in the research and development (R&D)
of a new product or service.

The purpose of market research is to look at the market associated with a

particular good or service to ascertain how the audience will receive it. This can
include information gathering for the purpose of market
segmentation and product differentiation, which can be used to tailor advertising
efforts or determine which features are seen as a priority to the consumer.

A business must engage in a variety of tasks to complete the market research

process. It needs to gather information based on the market sector being
examined. The business needs to analyze and interpret the resulting data to
determine the presence of any patterns or relevant data points that it can use in
the decision-making process.

Market research consists of a combination of primary information, or what has

been gathered by the company or by a person hired by the company, and
secondary information, or what has been gathered by an outside source.

Primary Information
Primary information is the data that the company has collected directly or that
has been collected by a person or business hired to conduct the research. This
type of information generally falls into two categories: exploratory and specific
research.

Exploratory research is a less structured option and functions via more open-
ended questions, and it results in questions or issues being presented that the
company may need to address. Specific research finds answers to previously
identified issues that are often brought to attention through exploratory research.
Secondary Information
Secondary information is data that an outside entity has already gathered. This
can include population information from government census data, trade
association research reports, or presented research from another business
operating within the same market sector.

Example of Market Research

Many companies use market research to test out new products or to get
information from consumers about what kinds of products or services they need
and don't currently have.

For example, a company that was considering going into business might conduct
market research to test the viability of its product or service. If the market
research confirms consumer interest, the business can proceed confidently with
the business plan. If not, the company should use the results of the market
research to make adjustments to the product to bring it in line with customer
desires.

The Development of Market Research

Formal market research began in Germany during the 1920s.1 Around the same
time, market research in the United States took off during the advertising boom of
the Golden Age of Radio. Companies that advertised on the radio began to
understand the demographics that were revealed by how different radio shows
were sponsored.

Product life cycle

A product is believed to go through

definite life stages in the same manner
as a living organism. Products are
first introduced in the market and
customers accept if they find it serving
their needs, sales go rapidly. Finally,
everyone who needs the product
acquires it and sales plateau. At some
stage, either the need for product was
satisfying to see to exists, or a different
solution to that need emerges. A
customer stops buying the product and
eventually the product sees to exists. A
company which introduces new product
naturally hopes that the product
will contribute to the product and provide
consumers satisfaction for a long period
of time. This, however, does
not happen in practice so progressive
organization tries to remain aware of
what is happing throughout the life of
the product in terms of sales and resultant
profit. Theodore Levitt (1965), A well-
known marketing management
thinker has produced his ideas in the
basic concept of the life cycle of the
product
A product is believed to go through
definite life stages in the same manner
as a living organism. Products are
first introduced in the market and
customers accept if they find it serving
their needs, sales go rapidly. Finally,
everyone who needs the product
acquires it and sales plateau. At some
stage, either the need for product was
satisfying to see to exists, or a different
solution to that need emerges. A
customer stops buying the product and
eventually the product sees to exists. A
company which introduces new product
naturally hopes that the product
will contribute to the product and provide
consumers satisfaction for a long period
of time. This, however, does
not happen in practice so progressive
organization tries to remain aware of
what is happing throughout the life of
the product in terms of sales and resultant
profit. Theodore Levitt (1965), A well-
known marketing management
thinker has produced his ideas in the
basic concept of the life cycle of the
product
product is believed to go through
definite life stages in the same manner
as a living organism. Products are
first introduced in the market and
customers accept if they find it serving
their needs, sales go rapidly. Finally,
everyone who needs the product
acquires it and sales plateau. At some
stage, either the need for product was
satisfying to see to exists, or a different
solution to that need emerges. A
customer stops buying the product and
eventually the product sees to exists. A
company which introduces new product
naturally hopes that the product
will contribute to the product and provide
consumers satisfaction for a long period
of time. This, however, does
not happen in practice so progressive
organization tries to remain aware of
what is happing throughout the life of
the product in terms of sales and resultant
profit. Theodore Levitt (1965), A well-
known marketing management
thinker has produced his ideas in the
basic concept of the life cycle of the
product
Concept of Product life cycle:
Levitt idealize the concept of the product
life cycle as-
1. Products have a limited life span
2. The sales and consumptions passed
through distinct stages, each poses
different challenges, opportunities,
and problems to the sellers.
3. Profit rise and falls at different
stages of the life cycle of products.
4. Product required different
marketing financial, manufacturing,
purchasing and human resource strategy
in
each stage of their life cycle.
The product life curves are portrait and
bell/saved and it is divided into four
stages.
1. Introductory Stage- There is likely
to be no profit is more likely to lose at
the entry stage of any product.
This loss may continue for some time
depending on market factors. Thus, there
may be either lost in the begging
throughout or either profit rise rapidly
or gradually. At this stage, a
considerable amount of funds are being
Journal of Marketing and Consumer Research
www.iiste.org
ISSN 2422-8451 An International Peer-reviewed
Journal
Vol.63, 2019
63
revolted to promotional schemes with
a view to generating sales while the
volume sales are low. Thus, in the
beginning, there is likely to be lost and
later on, as sales grow, the profit might
accumulate.
2. Growth stage- In the case of a
product launched successful, the sales
stars picking or rise more rapidly.
The next stage is reached which is
known as the growth stage. Here the
sale would climb up fast and profit
picture will also be improved
considerably. This is because the cost of
distribution and promotion is now spread
over larger volume of sales. As the
volume of production is increased, the
manufacturing cost per unit tends to
decline. Thus, from a strategic point of
view, this is a very critical stage.
3. Maturity stage- It is too optimistic
to think that the sale will keep
shooting up. At this stage, it is more
likely that the competitors become
more active. If the product is a novel
one, by now completion would have
come out with similar products in the
market to compete with. Therefore the
sales are likely pushed to
downwards by competitors by
professional efforts would have to
increase to try and sustained to sales.
This is
called the maturate stage. At this point, it
is difficult to push up sales. With regard
to the profit picture, the profit
is likely to be stabilized or start
declining, and more promotional efforts
have to be taken now in order to meet
the competition.
Figure-1: Product Life Cycle (PLC)
Stageses
4. The decline or obsolence stage-
there after sales are likely to decline
and the product could reach to
obsolete stage. Steps are to be taken
to prevent obsolete and avoid their
decline. This decline that generally
follows could be due to reseeds such
that consumers changes in taste and
preferences, improvement in
technology or introduction of better
substitute. This is the stage where the
profit drops rapidly and ultimately the
last stage emerges. Retaining such a
profit after these stages may be risky
and certainly not profitable to the
organization.
This concept of product life cycle is
applicable to all consumer product,
durables and non durables.
Product Life cycle of industrial
products- Although Product Life Cycle
(PLC) analysis has received limited
attention in developing industrial
marketing strategy; it is a very useful
concept to the marketers of industrial
products. John Smallwood ( ) points out
`The maturation of product technology
and product configuration along
with marketing program proceeds in
order, somewhat the predictable course
between over time with the
merchandising nature and marketing
environment noticeable similarities
between the product that is in the same
stage of their lifecycle. It is used as a
concept in forecasting, pricing,
advertising, product planning and
another
aspect of marketing management can
make it a valuable concept, although a
considerable amount of judgment
must be used in its application. PLC
analysis enables marketers to determine
where the product is in its lifecycle
to develop appropriate strategies aimed at
those covering the application.
Journal of Marketing and Consumer Research
www.iiste.org
ISSN 2422-8451 An International Peer-reviewed
Journal
Vol.63, 2019
64
1. Introduction Stages- Product
acceptances during the introductory
stage of industrial products, is
considerably different from what a
generally experienced in the consumer
market. While some products are
rapidly accepted, others are accepted
very slow and entirely considerable
market development before reaching
and appreciable growth stage. Product
acceptance in the industrial market is
affected by how the product fits into
the buyer’s total used system.
Generally, the use system involves
other products, other people, and
habitual
skills. When the product has a
potential for rapid acceptance, the
marketer must be prepared to meet
rigors
completion but with slow acceptance,
marketing strategy focus on market
development.
2. Growth stage- As the product
begins to enter the rapid growth stage,
the emphasis on product strategy
shifts to improving product design,
improving distribution services and
lowering price as increasing product
demand, accompanied by accumulated
product experience, begins to lower cast
substantially. As market demand
increases, product design and other
aspects as the product offering must be
changed to both lowed and premium
market segments. Further, when
availability is weak, competitors are
encouraged to enter the market.
3. Maturity Stage- By the time
market demand reaches the maturity
stage, industrial Byers has found
suppliers offering to satisfy their need
fairly well and are `neither reaching
for new supplier nor paying much
attention to the promotion of another
offering`. Marketing strategy, therefore,
should be directed to us keeping
current user satisfied and looking for
the opportunities To find new buyers
or enter new markets thorough
products modification and change in
other marketing mix variables.
4. Decline Stage- Change in customer
desire as well as changes in the state
of the art that creates better
substitute eventually bring about a
decline in the sales and profit of every
product. When a product enters into
decline stage the marketer is faced with
choice of phasing the product out is in
barking on milking strategy in
which marketing expect are sharply
reduced to increase profit margin.

Figure-1: Product Life Cycle (PLC) of

industrial products
Service life cycle- Just like the product
life cycle, services to have a life cycle if
we make a distinction between
the service category and the technology
change, we can see that many broad
service categories are needs remains
constant over a long period of time.
The technology has altered the
products in many cases the basic
needs
category remaining the same.
Technology has now the greatest
sophisticated in the mode of delivery
has placed
many services companies to an
augmented bundle of utilities.
Theoretically, it can sit that services go
through a
life cycle similar to products. The
individual services companies and
services brands still benefit from an
analysis of their past and prediction
about the future growth potential in a
traditional format of life cycle curve.
Other stages of the life cycle are-
 Pre-introduction stage- At this
stage concept testing can indicate the
acceptability of a new services
concept. More details test can sure if
there is large market to sustain the
services over an extended period of
time. Specialized technique such as
conjoined could be used to identify the
attributes which are considered as
important by customers, relative to
another attribute on offer.
Journal of Marketing and Consumer Research
www.iiste.org
ISSN 2422-8451 An International Peer-reviewed
Journal
Vol.63, 2019
65
 Service design- Service design
is a major issue apart from the
viability of the proposed service, that
testing at this stage. Regardless of
techniques used to do study, it is
necessary to do it to reduce the risk
of
getting into and unlivable business, or
that of entering with a wrong design. It
may be pertinent to know that for
many services, location with the critical
design which can may or break the
business.
 Post-launch Stage- There are
many things a service provider may want
to know from the customers even
after he has launched a new service.
Particularly, he may want input
attribute which customer is happy
about
those which creating dissatisfaction.
They are still hoping that the
deficiencies could be ignored out if
their
existence. This could be done infirmly
depending on the nature of the services
and efficacy of collecting accurate
feedback.
 Retail life cycle—The concept
of the product life cycle has been
developed by Theodore Levitt and
explain properly by Philip Kotler is
all applicable to the retail organization
because it also passes through
identifiable stages of innovation,
development, maturity, and decline.
The theory of retail lifecycle is about
changes through the time of retailing
of outlets, It claimed that retail
institutions have shown shape through
economic life. The S-shaped curve has
been classified into four main phases.
 Innovations- A new organization
is born, it improves upon the
convenience offered or create other
advantages to final customers that differ
sharply from those offered by retailers.
This is the stage of innovations
where an organization has few
competitors. Since it is a new concept
the rate of growth is fairly rapid and
the
management fine-tunes its strategy
through experimentation. The level of
profitability is moderate and this can
last up to five years that varies from
organization to organization.
 Accelerated Growth- The retail
organization faces a rapid increase in
sales. As the organization moves to
stages two of the growth which is the
stage of development a few
competitions emerge. Since the
company has
been in the market for a while, it is
now opposition to pre-empt the
market by establishing opposition to
leadership. Since growth is imperative,
the investment level is also high, as is
the profitability. Investment is
largely in system and process. This
stage can large from 5 to 10 years,
however towards to end there may be
heavy cost pressure.
 Maturity- The organization still
grows but competitive pressure is
acute from newer firms of retailing
that intend to arise and therefore
growth tends to decrease. Gradually, as
a marketer became more competitive
and direct competition will increase.
The rate of growth slows downing and
profit also starts to decline. This is
the time when the retail organization
needs to rethink its strategy and
reposition itself in the market. The
change
magic place in the format of business as
well as merchandise mix.
 Decline-The retail organization
loses its competitive edge and its
decline. In this stage, the organization
needs to decide if it is still going to
continue in the markets. If the growth
rate is negative, profitability decline
further and overheads are very high.
product is believed to go through definite life stages in the same manner as
a living organism. Products are

first introduced in the market and customers accept if they find it serving their
needs, sales go rapidly. Finally,

everyone who needs the product acquires it and sales plateau. At some
stage, either the need for product was

satisfying to see to exists, or a different solution to that need emerges. A

customer stops buying the product and
eventually the product sees to exists. A company which introduces new product
naturally hopes that the product

will contribute to the product and provide consumers satisfaction for a long
period of time. This, however, does

not happen in practice so progressive organization tries to remain aware of what

is happing throughout the life of

the product in terms of sales and resultant profit. Theodore Levitt (1965), A
well-known marketing management

thinker has produced his ideas in the basic concept of the life cycle of the
product

Concept of Product life cycle:

Levitt idealize the concept of the product life cycle as-

1. Products have a limited life span

2. The sales and consumptions passed through distinct stages, each poses
different challenges, opportunities,

and problems to the sellers.

3. Profit rise and falls at different stages of the life cycle of products.

4. Product required different marketing financial, manufacturing, purchasing

and human resource strategy in

each stage of their life cycle.

The product life curves are portrait and bell/saved and it is divided into four
stages.

1. Introductory Stage- There is likely to be no profit is more likely to lose at

the entry stage of any product.
This loss may continue for some time depending on market factors. Thus, there
may be either lost in the begging

throughout or either profit rise rapidly or gradually. At this stage, a

considerable amount of funds are being

Journal of Marketing and Consumer Research

www.iiste.org

ISSN 2422-8451 An International Peer-reviewed Journal

Vol.63, 2019

63

revolted to promotional schemes with a view to generating sales while the

volume sales are low. Thus, in the

beginning, there is likely to be lost and later on, as sales grow, the profit might
accumulate.

2. Growth stage- In the case of a product launched successful, the sales

stars picking or rise more rapidly.

The next stage is reached which is known as the growth stage. Here the
sale would climb up fast and profit

picture will also be improved considerably. This is because the cost of

distribution and promotion is now spread

over larger volume of sales. As the volume of production is increased, the

manufacturing cost per unit tends to

decline. Thus, from a strategic point of view, this is a very critical stage.

3. Maturity stage- It is too optimistic to think that the sale will keep
shooting up. At this stage, it is more
likely that the competitors become more active. If the product is a novel
one, by now completion would have

come out with similar products in the market to compete with. Therefore
the sales are likely pushed to

downwards by competitors by professional efforts would have to increase to

try and sustained to sales. This is

called the maturate stage. At this point, it is difficult to push up sales. With
regard to the profit picture, the profit

is likely to be stabilized or start declining, and more promotional efforts have

to be taken now in order to meet

the competition.

Figure-1: Product Life Cycle (PLC) Stageses

4. The decline or obsolence stage- there after sales are likely to decline
and the product could reach to

obsolete stage. Steps are to be taken to prevent obsolete and avoid their
decline. This decline that generally

follows could be due to reseeds such that consumers changes in taste and
preferences, improvement in

technology or introduction of better substitute. This is the stage where the profit
drops rapidly and ultimately the

last stage emerges. Retaining such a profit after these stages may be risky
and certainly not profitable to the

organization.

This concept of product life cycle is applicable to all consumer product,

durables and non durables.
Product Life cycle of industrial products- Although Product Life Cycle
(PLC) analysis has received limited

attention in developing industrial marketing strategy; it is a very useful

concept to the marketers of industrial

products. John Smallwood ( ) points out `The maturation of product technology

and product configuration along

with marketing program proceeds in order, somewhat the predictable

course between over time with the

merchandising nature and marketing environment noticeable similarities

between the product that is in the same

stage of their lifecycle. It is used as a concept in forecasting, pricing,

advertising, product planning and another

aspect of marketing management can make it a valuable concept, although a

considerable amount of judgment

must be used in its application. PLC analysis enables marketers to determine

where the product is in its lifecycle

to develop appropriate strategies aimed at those covering the application.

Journal of Marketing and Consumer Research

www.iiste.org

ISSN 2422-8451 An International Peer-reviewed Journal

Vol.63, 2019

64

1. Introduction Stages- Product acceptances during the introductory stage

of industrial products, is
considerably different from what a generally experienced in the consumer
market. While some products are

rapidly accepted, others are accepted very slow and entirely considerable
market development before reaching

and appreciable growth stage. Product acceptance in the industrial market is

affected by how the product fits into

the buyer’s total used system. Generally, the use system involves other
products, other people, and habitual

skills. When the product has a potential for rapid acceptance, the marketer
must be prepared to meet rigors

completion but with slow acceptance, marketing strategy focus on market

development.

2. Growth stage- As the product begins to enter the rapid growth stage,
the emphasis on product strategy

shifts to improving product design, improving distribution services and

lowering price as increasing product

demand, accompanied by accumulated product experience, begins to lower cast

substantially. As market demand

increases, product design and other aspects as the product offering must be
changed to both lowed and premium

market segments. Further, when availability is weak, competitors are

encouraged to enter the market.

3. Maturity Stage- By the time market demand reaches the maturity

stage, industrial Byers has found

suppliers offering to satisfy their need fairly well and are `neither reaching
for new supplier nor paying much
attention to the promotion of another offering`. Marketing strategy, therefore,
should be directed to us keeping

current user satisfied and looking for the opportunities To find new
buyers or enter new markets thorough

products modification and change in other marketing mix variables.

4. Decline Stage- Change in customer desire as well as changes in the

state of the art that creates better

substitute eventually bring about a decline in the sales and profit of every
product. When a product enters into

decline stage the marketer is faced with choice of phasing the product out is
in barking on milking strategy in

which marketing expect are sharply reduced to increase profit margin.

Figure-1: Product Life Cycle (PLC) of industrial products

Service life cycle- Just like the product life cycle, services to have a life cycle if
we make a distinction between

the service category and the technology change, we can see that many broad
service categories are needs remains

constant over a long period of time. The technology has altered the
products in many cases the basic needs

category remaining the same. Technology has now the greatest sophisticated in
the mode of delivery has placed

many services companies to an augmented bundle of utilities. Theoretically, it

can sit that services go through a
life cycle similar to products. The individual services companies and
services brands still benefit from an

analysis of their past and prediction about the future growth potential in a
traditional format of life cycle curve.

Other stages of the life cycle are-

 Pre-introduction stage- At this stage concept testing can indicate the

acceptability of a new services

concept. More details test can sure if there is large market to sustain the
services over an extended period of

time. Specialized technique such as conjoined could be used to identify the

attributes which are considered as

important by customers, relative to another attribute on offer.

Journal of Marketing and Consumer Research

www.iiste.org

ISSN 2422-8451 An International Peer-reviewed Journal

Vol.63, 2019

65

 Service design- Service design is a major issue apart from the

viability of the proposed service, that

testing at this stage. Regardless of techniques used to do study, it is

necessary to do it to reduce the risk of

getting into and unlivable business, or that of entering with a wrong design. It
may be pertinent to know that for

many services, location with the critical design which can may or break the
business.
 Post-launch Stage- There are many things a service provider may want to
know from the customers even

after he has launched a new service. Particularly, he may want input

attribute which customer is happy about

those which creating dissatisfaction. They are still hoping that the
deficiencies could be ignored out if their

existence. This could be done infirmly depending on the nature of the services
and efficacy of collecting accurate

feedback.

 Retail life cycle—The concept of the product life cycle has been
developed by Theodore Levitt and

explain properly by Philip Kotler is all applicable to the retail

organization because it also passes through

identifiable stages of innovation, development, maturity, and decline. The

theory of retail lifecycle is about

changes through the time of retailing of outlets, It claimed that retail

institutions have shown shape through

economic life. The S-shaped curve has been classified into four main phases.

 Innovations- A new organization is born, it improves upon the

convenience offered or create other

advantages to final customers that differ sharply from those offered by

retailers. This is the stage of innovations

where an organization has few competitors. Since it is a new concept the rate
of growth is fairly rapid and the

management fine-tunes its strategy through experimentation. The level of

profitability is moderate and this can
last up to five years that varies from organization to organization.

 Accelerated Growth- The retail organization faces a rapid increase in

sales. As the organization moves to

stages two of the growth which is the stage of development a few

competitions emerge. Since the company has

been in the market for a while, it is now opposition to pre-empt the

market by establishing opposition to

leadership. Since growth is imperative, the investment level is also high, as

is the profitability. Investment is

largely in system and process. This stage can large from 5 to 10 years,
however towards to end there may be

heavy cost pressure.

 Maturity- The organization still grows but competitive pressure is

acute from newer firms of retailing

that intend to arise and therefore growth tends to decrease. Gradually, as a

marketer became more competitive

and direct competition will increase. The rate of growth slows downing and
profit also starts to decline. This is

the time when the retail organization needs to rethink its strategy and reposition
itself in the market. The change

magic place in the format of business as well as merchandise mix.

 Decline-The retail organization loses its competitive edge and its

decline. In this stage, the organization

needs to decide if it is still going to continue in the markets. If the growth

rate is negative, profitability decline

further and overheads are very high.