Successful marketers need to draw on a wide range of data and analysis to help them decide which phase a product is in, and whether that phase can be extended. The marketing mix decisions in the decline phase will depend on the selected strategy. Price promotions to attract customers who use a rival brand.
This makes it possible for businesses to invest more money in the promotional activity to maximize the potential of this growth stage.
This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix. Maturity Stage At maturity, the strong growth in sales diminishes. While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.
Product features may be enhanced to differentiate the product from that of competitors. By the time a product reaches its Maturity phase, the company producing it needs to reap considerable rewards for the time and money spent developing the product so far.
Pricing is maintained as the firm enjoys increasing demand with little competition. By this stage, the most important decision that needs to be made is when to take the product off the market completely.
Pricing may be lower because of the new competition. Maturity Stage — During the maturity stage, the product is established and the aim for the manufacturer is now to maintain the market share they have built up.
A typical lifecycle for a well-managed product is shown in Figure 1, below. Promotion emphasizes product differentiation. Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.
Product Life Cycle Stages Explained The product life cycle has 4 very clearly defined stages, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below: As products moves from lifecycle phase to lifecycle phase, the elements of the marketing mix used to promote them change.
During the Introduction phase, there will most-likely be heavy promotional and advertising activity designed to raise awareness of the new product, and to seek sales amongst early adopters — adventurous consumers who like to own cutting edge products.
Growth Stage — The growth stage is typically characterized by a strong growth in sales and profits, and because the company can start to benefit from economies of scale in production, the profit margins, as well as the overall amount of profit, will increase.
Marketing communications seeks to build product awareness and to educate potential consumers about the product. Distribution becomes more intensive and incentives may be offered to encourage preference over competing products.Exploit the Product Life Cycle.
such executives found none who used the concept in any strategic way whatever, and pitifully few who used it in any kind of tactical way. a company’s long. The product life cycle stages are 4 clearly defined phases, each with its own characteristics that mean different things for business that are trying to manage the life cycle of their particular products.
Stages include introduction, growth, maturity and decline and are explained in detail here. The Stages Of Product Life Cycle Marketing Essay.
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Disclaimer: Thus, the concept of product life-cycle can be used as a forecasting tool. It can alert management that its product will inevitably face saturation and decline, and the host of problems these stages pose.
Product life-cycle concentrates only the life. The product life cycle is an important concept in marketing.
It describes the stages a product goes through from when it was first thought of until it finally. Product Life Cycle Marketing Management D01 April 7, Abstract In marketing, there is a tool that is very useful to marketing strategy development.
This tool is known as the product life cycle. The product life cycle goes through four stages before it is complete or starts over again.
The Product Life Cycle A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.Download