Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product. Competition may appear with similar products. They also need to consider any product modifications or improvements to the production process which might give them a competitive advantage.
The marketing mix decisions in the decline phase will depend on the selected strategy. However, it is essential that the product is not allowed to start costing its producer money, and this can easily happen if production costs increase as volumes drop.
During the earlier parts of the product lifecycle, the cost of promoting the product may be larger than the revenue it brings in. The impact on the marketing mix is as follows: This might not have happened had it been managed as if it was still in its Maturity phase.
Distribution becomes more intensive and incentives may be offered to encourage preference over competing products. However, the key to successful manufacturing is not just understanding this life cycle, but also proactively managing products throughout their lifetime, applying the appropriate resources and sales and marketing strategies, depending on what stage products are at in the cycle.
Growth Stage In the growth stage, the firm seeks to build brand preference and increase market share. For example, the product may be changed if it is being rejuvenated, or left unchanged if it is being harvested or liquidated. As sales decline, the firm has several options: Successful producers launched new and better products month after month after month.
Promotion is aimed at innovators and early adopters. Here is the example of watching recorded television and the various stages of each method: While this decline may be inevitable, it may still be possible for companies to make some profit by switching to less-expensive production methods and cheaper markets.
In general, this involves early investment to help secure revenue later on. Maturity Stage At maturity, the strong growth in sales diminishes.The product life cycle is an important concept in marketing.
It describes the stages a product goes through from when it was first thought of until it finally. The Stages Of Product Life Cycle Marketing Essay. Print Reference this. Disclaimer: Thus, the concept of product life-cycle can be used as a forecasting tool.
It can alert management that its product will inevitably face saturation and decline, and the host of problems these stages pose. Product life-cycle concentrates only the life.
The Product Life Cycle A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
Exploit the Product Life Cycle.
such executives found none who used the concept in any strategic way whatever, and pitifully few who used it in any kind of tactical way. a company’s long.
Definition Of A Product Life Cycle Marketing Essay.
Print Reference this. Disclaimer: “The product life cycle is MARKETING CONCEPT that describes the way the revenues from the sale of a product behave over time”. FREE APA Referencing Tool FREE Harvard Referencing Tool FREE Vancouver Referencing Tool FREE Study Guides.
Product Life Cycle Marketing Management D01 April 7, Abstract In marketing, there is a tool that is very useful to marketing strategy development. This tool is known as the product life cycle. The product life cycle goes through four stages before it is complete or starts over again.Download