Stage sales, however intensive marketing is a must
Stage One – Start-up/Creation There is a lot of planning that goes into starting any business. Stage one is the growing phase of the business during which the business plans and strategies are finally executed and the business organization comes into existence. This is the stage where the business is not generating revenue but trying to establish itself in the market and attract a stable set of investors and customers.
This is the stage where the business has to invest a lot of resources in creating the basic infrastructure and then marketing and advertising itself in the market.This is the phase during which innovative ideas are encouraged, in order to establish a USP (Unique Selling Proposition) for the company. It is a difficult task to have a smooth sailing business, without any struggle right from the beginning since the early stage of business setup involves higher risks.
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The income in the first stages is always lesser than the investments and hence initial stage is marked by lower profit margins for the business. Stage Two – GrowthOnce the business passes the nascent phase, it begins to find their core customers. Stage two or the growth phase of the business is when the business establishes its niche in the market. This is the phase where the business owners start to establish their brand identity and generate brand loyalty within their customer base using sound marketing practices. Although the focus of this stage is to maintain the core customer group and build trust and goodwill amongst the customers.This stage is marked by a rise in consumer demand and a consequent requirement of increased inputs in terms of production, manufacturing, and general operations to keep up with the rising sales and continue growth. The growth phase is thus marked by increased sales, rise in profit margins and thus establishment of the brand name in the market.
Stage Three – Maturity Stage three is the stage where the business reaches a certain maturity level in terms of the market. The brand identity and brand image of the business are well established at this stage.The customer base, investors, and other important business networks are well laid at this point. The sales are either increasing or at least have reached a considerable regular volume and require less resources for advertising to enhance sales, however intensive marketing is a must to enhance the overall market position or at least establish the current market position. This is the phase where the company would want to branch out into other ventures and dabble with product innovation. This is the business stage where the profit margins are fairly stable.
Stage Four – Recession/DeclineEvery business at some point of time undergoes a stage where it experiences a decline in the sales and an overall unfavorable atmosphere in the market termed as recession. This is nothing but a period of reduced economic activity, which results in a sharp or considerable decline in buying, selling, production, and even employment. The company might experience reduce in profit margins or even loss depending on the market positions. This is the phase where the company struggles to maintain its existence in the market and trying its level best to equip itself for a quick recovery.