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    Product Lifecycle and Marketing Strategies

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    mo
    Marketing -Product life cycle

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    Product Lifecycle and Marketing Strategies

    Uploaded by

    mo
    46 views9 pages
    Marketing -Product life cycle

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    product lifecycle and marketing strategies

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    Marketing -Product life cycle

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    46 views9 pages

    Product Lifecycle and Marketing Strategies

    Uploaded by

    mo
    Marketing -Product life cycle

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    New- Product Development and

    Product life cycle strategies

    1 Marketing R.N 30/03/1442


    Product Lifecycle strategies
    Management is aware that each product will have a
    lifecycle, although its exact shape and length is
    not known in advance, and differs according to
    the type of product, whether fad or fashion.
    The product lifecycle has five distinct stages
    o Product development: begins when the company
    finds and develops a new product idea . During
    product development sales are Zero and the
    company’s investing costs mount.
    2 Marketing R.N 30/03/1442
    oIntroduction: is a period of slow growth as the
    product is introduced in the market. Profits are
    nonexistent in this stage because of heavy
    expenses in the introduction stage.
    o Growth: is a period of rapid market acceptance
    and increasing profits.
    o Maturity: is a period of slowdown in sales growth
    because the product has reached maximum
    acceptance or due to the invasion of competitors.
    Profits level starts to decline.
    oDecline: is the period when sales fall off or profit
    drop.

    3 Marketing R.N 30/03/1442


    Product Life-Cycle Strategies

    Ch 9 -4 Copyright © 2011 Pearson Education


    Product Life-Cycle Strategies

    Ch 9 -5 Copyright © 2011 Pearson Education


    Product Life-Cycle Strategies
    •Style: A basic and distinctive mode of expression.

    •Fashion: A currently accepted or popular style in a


    given field.

    •Fad: A temporary period of unusually high sales


    driven by consumer enthusiasm and immediate
    product or brand popularity.

    Ch 9 -6 Copyright © 2011 Pearson Education


    Summary of product lifecycle objectives
    and strategies
    characteristics Introduction Growth Maturity Decline

    Sales Low Rapidly rising Peak sales Declining sales


    (maximum)
    Costs High cost per average low Low cost per
    customer customer
    Profits negative Rising profits high declining

    Customers innovators Early adopters Middle majority laggards

    Competitors few Growing Stable number Declining


    number number
    Marketing Objectives

    Create product Maximize market Maximize profits Reduce expenditure


    awareness share while defending and milk the brand
    market share

    7 Marketing R.N 30/03/1442


    Strategies Introduction Growth Maturity Decline

    Product Offer a basic Offer product Diversify brands Phase out weak
    product extension, and models items
    service warranty
    Price Use cost-plus Price to Price to beat or Cut price
    penetrate match
    market competitors
    Distribution Build selective Build intensive Build more Go selective: get
    distribution distribution intensive rid of
    distribution unprofitable
    outlets
    advertising Build product Build awareness Stress brand Reduce to level
    awareness and interest differences and or retain loyal
    benefits customers
    Sales promotion Use heavy Reduce to take Increase to Reduce to
    sales advantage of encourage minimal level
    promotion heavy customer brand switching
    8 Marketing demand
    R.N 30/03/1442
    Strategies Introduction Maturity

    Product Offer a basic product Diversify brands and models

    Price Use cost-plus Price to beat or match


    competitors

    Distribution Build selective Build more intensive


    distribution distribution

    advertising Build product awareness Stress brand differences and


    benefits

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