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.
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.
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.
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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