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Product life cycle
 

Product life cycle

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    Product life cycle Product life cycle Presentation Transcript

    • Product life cycle
    • sales profits introduction growth maturity decline
    • Product life cycle • Introduction • Growth • Maturity • Decline
    • Introduction • Firms seeks to build a product awareness and develop a market for the product. The impact of marketing mix: • Product branding and quality level is established and intellectual property protections like patents , copy rights etc are obtained • Pricing may be low penetration pricing to build market share rapidly and high skim pricing to recover development cost • Distribution is selective until the customers show the acceptance of the product • Promotion is aimed at innovators and early adopters
    • Marketing strategy: introduction stage • Profits are negative /low • Promotional expenditure are at their highest ratio to sales • Decide when to enter the market – To be first – To come in later • Market pioneer advantage
    • Growth • Firms seeks to build brand preference and increase market share. • Product quality is maintained and additional features and support services may be added • Pricing is maintained as the firm enjoys increasing demand with little competition • Distribution channels are added as demand increases and customers accept the product • Promotion is aimed at broader audience
    • Marketing strategy : Growth stage • Improves product quality and styling • Add new product features and models • Enter new market segment • Enter new distribution channel • Product preference advertising
    • Maturity • Strong growth in sales diminishes. To defend market share while maximizing profits . • Product may be enhanced to differentiate the product from that of competitors • Pricing may be lower because of new competition • Distribution is more intensive and incentives may be offered to encourage preference over competing products • Promotion emphasis product differentiation
    • Marketing strategy : maturity stage • Market modification –Expand number of brand users –Increase the usage rate per user
    • Marketing strategy : maturity stage • Product modification –Quality improvement –Feature improvement –Style improvement
    • Marketing strategy : maturity stage • Marketing program modification –Price –Distribution –Advertising –Sales promotion –Personal selling –services
    • Decline • Maintain the product • Harvest the product • Discontinue the product