Product Life Cycle

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Recommended: Critically analyse the significance of product life cycle

Product Life Cycle

A new product progresses through a sequence of changes from introduction to growth, maturity & decline. This sequence is known as the “Product Life-Cycle” & is associated with changes in the marketing situation, thus impacting the marketing strategy & the marketing mix.

Introduction Stage

In the introduction stage, the firm seeks to build product awareness & develop a market for a product. The impact on the marketing mix is as follows:

• Product :- Branding & quality level is established & intellectual property protection such as patents & trademarks are obtained.

• Pricing :- The pricing strategy maybe one of ‘low penetration pricing’ to build market share rapidly, or ‘high skim pricing’ to recover development costs.

• Distribution :- It is selective until consumers show acceptance of the product.

• Promotion :- It is primarily aimed at innovators & early adopters. Marketers seek to build product awareness & to educate potential consumers about the product.

Growth Stage

In the growth stage, the firm seeks to build brand preference & increase market share. The impact on the marketing mix is as follows:

• Product :- The product quality is maintained and additional features & support services maybe added.

• Pricing :- The price is maintained because the firm enjoys increasing demand with little or no competition.

• Distribution :- Sales channels are diversified & increased as demand increases & consumers start accepting the product more & more.

• Promotion :- It is aimed at a broader audience.

Maturity Stage

At maturity, the strong growth in sales diminishes. Competitors may appear with similar products. The primary aim at this stage is to defend market share while maxi...

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...cial Responsibility for a particular cause or on philosophical grounds. This “socially responsible marketing” can build brand equity for products with short life cycle.

• Firms with strong goodwill in the market can bring in Fads under the umbrella of Family branding. This would help in easy brand recognition. Creating a product line with relevance to the fad will help in product usage.

• Bringing in innovation in products to reduce choices, hence reducing the fatigue factor, increase utility of the fad & cut down prices.

• Strong advertising through print media, television & radio, and public relations. This would help in increasing the attention span of the product from consumer’s perspective.

• Co-Branding with a high Brand equity brand, can help a fad channel through its partner’s distribution channels. This reduces the problem of lack of availability.

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