Product Life Cycle

1514 Words4 Pages
bulb-icon

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...

... middle of paper ...

...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.

Show More
Related

  • Allround Executive Summary

    1150 Words  | 3 Pages

    Thus new products/line extensions will be based on Allround brand, each one with a unique target market, delivering different value proposition to the respective customer.

    Read More

  • Marketing Stacy's Pita Chips

    1709 Words  | 4 Pages

    Once the target market has been identified it is important to develop a marketing strategy. In today's fast paced, information overloaded society; conveying a message about a product seems to be more difficult than ever. The consumer is bombarded with advertising everywhere they look. Today advertising not only exists on television, radio, magazines, and newspapers, it can be found on billboards, park benches, in our mailboxes, on buses, taxis, at sporting events, and on clothing.

    Read More

  • Analysis Of A Couple Of Squares

    864 Words  | 2 Pages

    A couple of Squares has a limited capacity for which to produce their products and smaller companies tend to have larger fixed costs than bigger companies. Therefore, A Couple of Squares must maximize profits in order to ensure that they will stay in business. A profit-oriented pricing objective is also useful because of A Couple of Squares’ increased sales goals. A Couple of Squares increased their sales goals due to recent financial troubles. Maximizing profits is the easiest way to meet these sales goals due to the fact that A Couple of Squares has limited production capacity. The last key consideration favors a profit-oriented pricing objective because A Couple of Squares offers a specialty product. A specialty product often has limited competition, therefore can be priced on customer value. Pricing at customer value will maximize profits as well as customer satisfaction. A Couple of Squares’ lack of production capacity, increased sales goals, and specialty product favor a profit-oriented pricing

    Read More

  • Target Corporation Competitive Analysis Essay

    1800 Words  | 4 Pages

    The next step is the growth stage. In this stage product growth is monitored and big investments are made. Maturity stage the growth of the outputs is significant. For the company to ensure product survival in the market and gain a competitive advantage over competitors it has to incorporate product differentiation. The final stage involves product decline stage. In this juncture product sale goes down and the product identification

    Read More

  • Hill-Rom Case Study

    764 Words  | 2 Pages

    As we learned from Chapter 12, price must be carefully determined and match with firm’s product, distribution, and communication strategies. (Hutt & Speh, 2012, p. 300) Therefore, there should be a strong market perspective in pricing. In order to build an effective pricing policy, marketers should focus on the value a customer places on a product or service. One of the most effective ways to do so is differentiating through value creation.

    Read More

  • Branding, Pricing, and Distribution: Home Depot

    1572 Words  | 4 Pages

    Suttle, R. (2013). Definition of Pricing Strategy. Retrieved November 16, 2013, from Houston Chronicle: http://smallbusiness.chron.com/definition-pricing-strategy-4686.html

    Read More

  • Jet Blue Marketing Mix

    714 Words  | 2 Pages

    When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.

    Read More

  • Marketing Case Study Of Primark's Market

    1944 Words  | 4 Pages

    For instance, Primark 's products offer customers clothing as a base product, of witch actual benefits are being to be cheap and trendy, and they may have some return policy as augmented benefit in case of defects. Each product may be realised following a new product development process to improve its success rate (Harris and Schaefer, 2015, p.43-47).

    Read More

  • Using The 4 Ps To Market Ultimate Fighting

    1277 Words  | 3 Pages

    Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.

    Read More

  • Marketing Strategy Of Lawn Mower

    1052 Words  | 3 Pages

    The pricing strategy will start out rather high for this product upon its release in order to draw a more selective crowd such as the upper class members of the urban society. Once the product has succeeded within this market there will be a development of additional variations of the product which will allow for certain models, with less features, to be sold at a lower price point in order to attract the members of society who are less willing to pay the high asking price for the top of the line version of the

    Read More

  • Break Free From the Product Life Cycle

    1215 Words  | 3 Pages

    Marketers are disrupting it by redefining the boundaries between product types. In the process, they’re rejuvenating categories and creating whole new markets (Moon, 2005).” A great example of this is Louis Vuitton, a trunk-maker in Paris since 1854, who became a legend in the art of travel by creating luggage, bags and accessories as innovative as they were elegant and practical. A century and a half later, the LV logo lives on. Strengthened by its international renown, Louis Vuittion is personified by the Monogram canvas product line, which has enjoyed great success since 1896 and played a key role in the development of modern luxury.

    Read More

  • Cultural Value Systems Essay

    1387 Words  | 3 Pages

    ...price, it also allows for them to increase their sales and enter into new markets, which in turn would help to increase their profits.

    Read More

  • Marketing Process of An Herbal Shampoo

    1390 Words  | 3 Pages

    There are many ways that marketing strategies and tactics such as the ones I listed above for my new shampoo can be used to boost product sales and distribution. But, many factors come into play- the environmental factors and the technological factors, including competition. With developing a well organized and strategize marketing plan for any business or service it is important to remember to first plan, research, analyze, understand the customers needs and wants, then implement.

    Read More

  • Product Market Expansion Strategy In The Apple Inc.

    1713 Words  | 4 Pages

    emerging or new market. It can originate from new technology or new market opportunities (Eliashberg, J., Lilien, G. L., & Rao, V. R. 1997). Literature defines product development as exploiting an untapped market opportunity and turning it into a value product for customer satisfaction. Development and introduction of a new product requires extensive research on understanding customer needs, market structure, emerging trends and analysing the internal & external competitive market environments. To evaluate customer satisfaction previous researches provide strong relationship between customer satisfaction and product quality, product features and value for money. ***

    Read More

  • Marketing Strategy Of Samsung's Market Skimming Pricing Strategy

    992 Words  | 2 Pages

    This is a strategy that is executed when launching highly priced commodities. It is aimed at maximizing profits by charging a higher price initially to the first customers. With time the price is lowered gradually to attract more consumers to purchase it. Companies will use this strategy to capitalize on those consumers that have the will of spending on a product that has cutting edge technology.

    Read More

More about Product Life Cycle

Open Document