Number of users can be increased by variety of ways. Marketer tries to expand market by increasing the number of buyers. The need for immediate profit is not a pressure. Each stage is associated with changes in the product's marketing position. Feature improvement leads to convenience, versatility, and attractiveness. Some companies formulate a special committee for the task known as Product Review Committee. The demand for the product is created and developed in this stage. You can use various marketing strategies in each stage to try to prolong the life cycle of your products. Importance of Product Life Cycle. Before publishing your articles on this site, please read the following pages: 1. Company should reasonably modify one or more elements of marketing mix (4P’s) to attract buyers and to fight with competitors. The product life cycle proposes that a product goes through a life cycle like humans go through different stages of life. It means the various stages a product sees in its complete life span. (d) Buyers are price-sensitive or price-elastic, and not promotion-elastic. Following possible strategies are followed: To do nothing can be an effective marketing strategy in the maturity stage. New strategies are implemented. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and […] There is a decrease in demand and sales of the product. 4. After this initial stage, the next stage of the product is the growth stage. Product Strategies. Meaningful product strategies for rural market and rural consumers are discussed here. Privacy Policy 8. Copyright 10. This may stimulate sales. They prefer the low-priced products. Product modification can take several forms: Quality improvement includes improving safety, efficiency, reliability, durability, speed, taste, and other qualities. Sales volume is the product (or outcome) of number of users and usage rate per users. Disclaimer 9. Sales volume can also be increased by increasing the usage rate per user. Product life cycle is important in various ways. The strategies are aimed at sustaining market growth as long as possible. Each of stages demands the unique or distinguished set of marketing strategies. Company formulates various strategies to manage the decline stage. (c) There is strong potential for competition. The company adopts offensive/aggressive marketing strategies to defeat the competitors. This includes improving features, such as size, colour, weight, accessories, form, get-up, materials, and so forth. This combination enables to skim the maximum profit from the market. Product life cycle comprises of the following four stages −. A marketer should watch on its sales and market situations to identify the stage in which the product is passing through, and accordingly, he should design appropriate marketing strategies. It may forgo maximum current profits to earn still greater profits in the future. Earlier or later, the decline in the sales is certain. Introduction stage is marked with slow growth in sales and a very little or no profit. Every stage gives varying importance to these elements of marketing mix. On the basis the report submitted by the committee, suitable decisions are taken. Helpful to the marketer regarding competition. Competitors have entered the market. Product life cycle is important in various ways. There are three ways to expand the number of users: i. The committee collects data from internal and external sources and evaluates products. (5) It encourages sales force and distributors. The manufacturing cost decreases so there is increase in profit margin. Small unit and low priced packing (b) Customers are ready to pay the asking price. (2) Product modification can be made at very little expense. In this stage, the demands and market share increases as well as competition emerges in the market. In the growth stage, there is a boom in the demand of the product and the profit increases substantially. Introduction. (c) There possibility of competition and the firm wants to build up the brand preference. Let us start by describing the first stage we have in the product life cycle, that is, the introduction stage. Company may follow any of the following strategies: This strategy is followed with the expectations that competitors will leave the market. Cautions the management about the decline stage of the product. The high promotional expenses are aimed at convincing the market the product merits even at a high price. Product qualities and features improvement, 2. If a company needs to launch a new product in the market, there is a different development process to be considered. Performance in different phases of product life cycle can be studied under four parameters- 1. There is decrease in the price of the product. In decay, there is a slight decrease in the demand. Demand of product also decreases. In stability, the demand of the product remains constant. Here, strategy basically involves four elements – product, price, promotion, and distribution. The first important task is to detect the poor products. They need to be informed and convinced. This is the stage of rapid market acceptance. This strategy makes a sense in following assumptions: (a) Major part of market is not aware of the product. Every stage poses different opportunities and challenges to the marketer. This is the final stage of the product. The product life cycle contains four distinct stages: introduction, growth, maturity and decline. Image Guidelines 5. 3. Adding new models and improving styling, 4. Convert non-users into users by convincing them regarding uses of products. Company tries to enter the new segments. Following are the possible strategies during the first stage: This strategy consists of introducing a new product at high price and high promotional expenses. Reducing price at the right time to attract price-sensitive consumers, 7. Strategies for the differing stages of the Product Life Cycle. Marketing . Note that product has been newly introduced, and a sales volume is limited; product and distribution are not given more emphasis. Observe Figure 3. TOS 7. There is introduction of new product in market. Marketing and promotional expenses increase. Quality improvement can offer more satisfaction. Products undergo minor changes to attract buyers. By appropriate combination of these four elements, the strategy can be formulated for each stage of the PLC. There is severe fight among them for more market share. Such products are continued as long as they are profitable. The product life cycle begins once a product is introduced into the market and it ends when a product is finally phased out, abandoned or becomes obsolete. Shifting advertising and other promotional efforts from increasing product awareness to product conviction, 6.

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