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Marketing strategies

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  • 1.  Product Life Cycle Strategies INTRODUCTION STAGE GROWTH STAGE MATURITY STAGE DECLINE STAGE
  • 2.  Product life cycle is the course of a product’s sales and profits over time. Product life cycle(PLC) deals with the life of a product in the market with respect to business or commercial costs and sales measures
  • 3. When we say that a product has a life cycle we assert fourthings: Products have a limited life. Products sales pass through distinct stages, each posing different challenges, opportunities and problems to the seller. Profits rise and fall at different stages of the product life cycle. Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life – cycle stages.
  • 4. Product Life-CycleSales andProfits TimeProduct Introduction Growth Maturity DeclineDevelop-ment
  • 5.  Type of product Level of competition Marketing support of the product Customer taste
  • 6. Promotion High Low Rapid- Slow- High skimming skimming strategy strategyPrice Rapid- Slow- Low penetration penetration strategy strategy
  • 7.  The costs are very high low sales volumes to start Little or no competition Demand has to be created Customers have to be prompted to try the product
  • 8.  The need for immediate profit is not a pressure. The product is promoted to create awareness Heavy expenditures to create trial for Sales Promotion
  • 9. Introduction Stage of the PLC Low sales Sales Costs High cost per customer Profits Negative Marketing Objectives Create product awareness and trial Product Offer a basic product Price Use cost-plus Distribution Build selective distribution Build product awareness among early Advertising adopters and dealers
  • 10.  costs reduced due to economies of scale sales volume increases significantly profitability begins to rise public awareness increases competition begins to increase with a few new players in establishing market increased competition leads to price decreases• Sales Promotion – Reduce expenditures to take advantage of consumer demand
  • 11.  Improves product quality and adds new features and improved styling. Adds new models and flanker products(i.e., products of different sizes, flavors, and so forth that protect the main product). It enters new market segments It increases its distribution coverage and enters new distribution channels. It shifts from product- awareness advertising to product- preference advertising. It lowers price to attract the next layer of price – sensitive buyers.
  • 12. Growth Stage of the PLC Sales Rapidly rising sales Costs Average cost per customer Profits Rising profits Marketing Objectives Maximize market share Product Offer product extensions, service, warranty Price Price to penetrate market Distribution Build intensive distribution Advertising Build awareness and interest in the mass market
  • 13.  costs are lowered as a result of production volumes increasing and experience curve effects sales volume peaks and market saturation is reached increase in competitors entering the market prices tend to drop due to the proliferation of competing products brand differentiation and feature diversification is emphasized to maintain or increase market share Industrial profits go down
  • 14. –Profits continue to grow and stay positive throughout–Competition is most intense at this stage; many versions and brands–Strategies to prolong this stage: • Modify the market • Modify the product • Modify the marketing mix
  • 15. Three potentially useful ways to change the course for a brand are market, product, and marketing program modification.Product modification Trying to stimulate sales by modifying theproduct’s characteristics through1.Quality improvement Eg: Aashirvaad, Annapurna,Nature fresh2. Feature improvement Eg: Pulsar 180 to Pulsar 2203. Style improvement Eg; New car models, New Coke
  • 16. Maturity Stage of the PLC Sales Peak sales Costs Low cost per customer Profits High profitsMarketing Objectives Maximize profit while defending market share Product Diversify brand and models Price to match or best competitors Price Build more intensive distribution Distribution Advertising Stress brand differences and benefits
  • 17.  costs become counter-optimal sales volume decline or stabilize prices, profitability diminish  Sales of the new product drop quickly as the target market(s) move on to other things  Profits decline as competitive pressures force lower prices and set promotional spending at a level that maintains the share
  • 18. – Decisions about the product • Maintain spending levels to fight it out for what is left • Harvest by cutting spending and riding it out. • Drop the product and move on to the next thing
  • 19.  Eg. 5.25 Floppy disk
  • 20. Decline Stage of the PLC Sales Declining sales Costs Low cost per customer Profits Declining profits Marketing Objectives Reduce expenditure and milk the brand Product Phase out weak items Price Cut price Distribution Go selective: phase out unprofitable outlets Advertising Reduce to level needed to retain hard-core loyal customers
  • 21. INTRODUCTION GROWTH MATURITY DECLINE10-26
  • 22.  Marketing management –Philip Kotler Kevin Keller Abraham Koshy Mithileshwar Jha
  • 23. THANK YOU !!!

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