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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:...
Marketing strategy: introduction stage
• Profits are negative /low
• Promotional expenditure are at their highest ratio
to...
Growth
• Firms seeks to build brand preference and increase
market share.
• Product quality is maintained and additional
f...
Marketing strategy : Growth stage
• Improves product quality and styling
• Add new product features and models
• Enter new...
Maturity
• Strong growth in sales diminishes. To defend
market share while maximizing profits .
• Product may be enhanced ...
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
–P...
Decline
• Maintain the product
• Harvest the product
• Discontinue the product
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Product life cycle 1

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Product life cycle 1

  1. 1. Product life cycle
  2. 2. sales profits introduction growth maturity decline
  3. 3. Product life cycle • Introduction • Growth • Maturity • Decline
  4. 4. 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
  5. 5. 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
  6. 6. 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
  7. 7. 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
  8. 8. 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
  9. 9. Marketing strategy : maturity stage • Market modification –Expand number of brand users –Increase the usage rate per user
  10. 10. Marketing strategy : maturity stage • Product modification –Quality improvement –Feature improvement –Style improvement
  11. 11. Marketing strategy : maturity stage • Marketing program modification –Price –Distribution –Advertising –Sales promotion –Personal selling –services
  12. 12. Decline • Maintain the product • Harvest the product • Discontinue the product

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