Marketing Cycle?

Question

What are the steps in Marketing Cycle?

for Example: step 1: R&D - research and development and so on.

Answer 1

I am assuming you're talking about the product life cycle.

The different stages in a product life cycle are:

Market introduction stage

cost high

sales volume low

no/little competition - competitive manufacturers watch for acceptance/segment growth losses

demand has to be created

customers have to be prompted to try the product

Growth stage

costs reduced due to economies of scale

sales volume increases significantly

profitability

public awareness

competition begins to increase with a few new players in establishing market

prices to maximize market share

Mature stage

Costs are very low as you are well established in market & no need for publicity.

sales volume peaks

increase in competitive offerings

prices tend to drop due to the proliferation of competing products

brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered

Industrial profits go down

Decline or Stability stage

costs become counter-optimal

sales volume decline or stabilize

prices, profitability diminish

profit becomes more a challenge of production/distribution efficiency than increased sales

Answer 2

Trading and/or forecasting financial instruments like stocks or commodities by astrology alone, is comparable to eating a sandwich without bread. Or, for those who prefer a gluten-free diet, it is akin to eating a salad without lettuce. The result is that occasionally the forecast will hit the mark, just as occasionally eating the ingredients of a sandwich without the bread, or eating the ingredients of a salad without the lettuce, will satisfy one's hunger. But what is lacking in the forecasts or trading results of a financial astrologer who uses no other analytical tools in forecasting or trading markets other than astrology, is consistency in accuracy. Sometimes the financial astrologer is amazingly accurate in calling for a big rally or big decline in prices, and at other times the market barely registers a hiccup when a big move was forecasted. Worse yet is when the market moves in completely the opposite direction as called for by the financial astrologer. Why does that happen?

Market trends

The most logical explanation is that astrology is but a market timing tool. It can alert one to those times when a financial market is vulnerable to a reversal in price direction. In fact, it is perhaps the most accurate market timing tool available for this task. But it is not a very accurate tool for identifying the underlying trend of a market, both in terms of the present or the future. Additionally, the classical rules of astrology are not always applicable to the art of forecasting whether the market will make a high or low, based on the idea that soft aspects like sextiles and trines are favorable and therefore should correlate with crests, while hard aspects like squares should correlate with troughs (low in price).

The Right Food

In the real world of forecasting or trading markets, one needs to know how to integrate geocosmic studies (i.e. astrological signatures) with other market analysis disciplines in order to attain consistently excellent results. Astrology alone provides an incomplete methodology. The result is apt to be less than satisfying over the long haul, just like eating sandwiches without bread, or salads without lettuce. On the other hand, using astrology with other disciplines enhances one's accuracy in forecasting over the long haul, which can result in potentially much better trading results. The key then is to understand how each signature can actually effect market prices and trends, because not all astrological signatures are equal. It is the same with sandwiches and salad. Not all sandwiches or salads taste the same. Sometimes we have an urge for peanut butter and jelly. Other times we may wish avocado and cheese, or corn beef or tuna fish. In a salad, sometimes we prefer tomatoes and red peppers. Other times we may have an appetite for shrimp or lobster in our salads. Think of the astrological signatures like those ingredients. Even without them, they are still sandwiches and salads. But with the right combination of ingredients, the results can be very satisfying.

Cycle Studies

If geocosmic signatures are like the ingredients to a sandwich or salad, then what is comparable to the bread in the sandwich, and the lettuce in the salad? In this author's opinion, it is the study of cycles. But here too, not all cycles are equal, just as not all breads or all lettuces are equal. Sometimes we may prefer whole wheat or rye bread. Other times, maybe a croissant will do. In a salad, sometimes we may be satisfied with normal head lettuce. Other times perhaps romaine or bib or endive is preferred.

The same is true with cycles. There are many market analysts who claim to be adept at cycles, but in fact not all analysts agree on which cycles are actually valid, or even how to use cycle studies. For instance, there is the group that we will refer to as "static cycles" analysts. They believe that every cycle has a definite, fixed length, with no orb of time permissible. As an illustration, they believe a six-week cycle must always happen in the sixth week. It cannot occur in the eighth week. Thus, even though the market is down for only one day in the sixth week, that is their cycle, even if in the next 1-2 weeks prices fall lower, and then rally higher than before that low of the sixth week.

Cycles and Orbs

Then there is the group who apply what we shall refer to as "dynamic cycles." They believe that every cycle has a permissible orb of time away from its median during which it may unfold. For instance, they believe a 6-week cycle can occur in the fifth or seventh week, and maybe even in the fourth or eight week, depending on other variables. They also believe that the lowest price in the cycle is the beginning of that cycle (in a bull market), or the end of that cycle (in a bear market). There cannot be a lower price between the beginning and the end if it is a valid cycle.

Crest and Troughs

There is another difference that one usually finds between static and dynamic cycle proponents. Those who subscribe to static cycles oftentimes make no differentiation between measuring a cycle from trough to trough or crest to crest. They have cycle periodicities for both. And when an expected crest turns out instead to be a trough (or vice-versa), they will claim it as a "cycle inversion." The idea of "cycle inversion" does not exist for adherents to the "dynamic cycles" theory. Here, cycles are measured only in terms of the interval of time between troughs (not the crests). The highest price between the two troughs which define the cycle, is known as the crest of that cycle. If the crest occurs before the middle of the cycle, it is known as "left translation," which is a bearish characteristic. It means that prices spent less time going up, and more time coming down, within that cycle. If the crest occurs past the midpoint of the cycle, then it is known as "right translation," which is a characteristic of a bull market. It means the market spent more time rising in price than falling. Since all cycles have an orb of time in which they may unfold away from the median, there is never a "cycle inversion." The cycle may "skip a beat," but it never inverts, in the methodology of a "dynamic cycles" analyst.

Integrating Cycles With Trends

Successful analysis of markets, and investing in financial instruments, depends greatly on one's understanding of the underlying trend. Like astrology, trend analysis depends upon other factors in order to be of value. To a day trader, a trend may be something that lasts only a couple of hours. To an investor, a trend may be something that has to last over several months, even years.

Types of Cycles

In the study of cycles as outlined in The Ultimate Book On Stock Market Timing, Volume 1: Cycles and Patterns in the Indexes by the author, cycles can be broken down into three types. The first are those that are comprised of three sub-cycles, known as phases, which last approximately one-third the time of the cycles median length. For instance, a three-phase 18-week cycle will be comprised of three sub-cycles, or phases, which last approximately 6 weeks each. The second type of cycle is comprised of two sub-cycles, which last approximately one-half of the cycle's median length. For example, a two-phase 18-week cycle will be comprised of two sub-cycles, or phases, which last about nine weeks apiece. The third type of cycle is a "combination pattern." That is, there will be sub-cycles (troughs) at each 6-week interval, and another at the 9-week interval.

Bull and Bear

In terms of trend analysis, the first phase of every cycle is almost always bullish. However, the last phase of every cycle will tend to have more bearish characteristics. Therefore, the key to understanding the trend is to understand which phase of the cycle (i.e. the next largest cycle) the market is in. If it is in the first phase of the cycle, one must adopt bullish strategies, which means success will be more likely when one buys on corrective declines, rather than looking for opportunities to sell short. If a market is in the final phase of a cycle, then it is not advisable to look for buying opportunities. It is time to sell, or look for opportunities to sell short.

Tying In Multiple Cycle Time Frames

Every cycle is part of a greater cycle. These cycles are but phases of the greater cycle, which are multiples of 2 or 3 to this greater cycle. Conversely, every cycle is made up of smaller cycles. These smaller cycles are known as sub-cycles, or phases of the greater cycle, and are divisible by the number 2 or 3 of the larger cycle.

When studying cycles, one needs to start with the longer cycles, and work downwards to understand its parts, or sub-cycles, or phases. In doing so, one must correctly identify which phase this cycle is in, in regards to the larger cycle of which it is a part. Then one will know whether or not that market is in the bullish (first) or bearish (last) phase of that larger cycle. With this in formation, one can know which way to trade - from the long side (buying) or short side (selling) in order to enhance his or her profitability. In addition, as a forecaster, one can attain a greater accuracy rate in calling for higher or lower prices into the future with this knowledge.

The FTSE

As an example, let's look at the U.S. stock market. Most of the other stock markets of the world, like the FTSE, will show similar patterns and cycles. Let's assume an 18-year cycle in U.S. (and world) stocks began after the "October Crash" of 1987. Let's assume the 18-year cycle which began then will be a three-phase type of cycle. This means it will consist of three sub-cycles that last approximately 6 years each (actually, about 5-7 years each, since we subscribe to the "dynamic cycles" theory). The first pha

Answer 3

The Product Life Cycle is what I believe you're referring to.

1. Introduction

2. Growth

3. Maturity

4. Decline