Product Life Cycle In Marketing

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The product life cycle, in a marketing context, is all the stages of a product 's life span that are related to its promotion and sales. The marketing life cycle is traditionally broken down into four stages: introduction, growth, maturity and decline. Introduction stage The introduction stage is the stage in which a new product is first distributed and made available for purchase, after having been developed in the product development stage. But introduction can take a lot of time, and sales growth tends to be rather slow. Profits in the introduction stage are negative or low due to the low sales on the one hand and high-distribution and promotion expenses on the other hand. Much money is needed to attract distributors and build their stocks.…show more content…
Concerning the product life cycle strategies we can identify the proper launch strategy: the company must choose a launch strategy that is consistent with the intended product positioning. Without doubt, this initial strategy can be considered to be the first step in a grander marketing plan for the product’s entire life cycle. The main objective should be to create product awareness and trial. Since the market is normally not ready for product improvements or refinements at this stage, the company produces basic versions of the product. Cost-plus pricing should be used to recover the costs incurred. Selective distribution in the beginning helps to focus efforts on the most important distributors. Advertising should aim at building product awareness among innovators and early adopters. To entice trial, heavy sales promotion is…show more content…
This happens to most product forms and brands at a certain moment. Sales may plummet to zero, or they may drop to a low level where they continue for many years. Reasons for the decline in sales can be of various natures. For instance, technological advances, shifts in consumer tastes and increased competition can play a key role. As sales and profits decline, some competitors will withdraw from the market. At the decline stage, careful selection of product life cycle strategies is required. The reason is that carrying a weak product can be very costly to the firm, not just in profit terms. There are also many hidden costs. For instance, a weak product may take up too much of management’s time. It requires advertising and sales-force efforts that could better be used for other, more profitable products in other stages. Most important may be the fact that carrying a weak product delays the search for replacements and creates a lopsided product mix. It also hurts current profits and weakens the company’s foothold on the
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