Discuss the different strategies to be adopted in product life cycle

Every product goes through a series of stages, namely the introduction, growth, maturity, decline. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn. However, most products fail in the introduction phase.

Discuss the different strategies to be adopted in product life cycle

Product passes through four stages of its life cycle. Every stage poses different opportunities and challenges to the marketer. Each of stages demands the unique or distinguished set of marketing strategies. 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.

Here, strategy basically involves four elements — product, price, promotion, and distribution. By appropriate combination of these four elements, the strategy can be formulated for each stage of the PLC. Every stage gives varying importance to these elements of marketing mix. Let us analyze basic strategies used in each of the stages of the PLC, as described by Philip Kotler.

Marketing Strategies for Introduction Stage: Introduction stage is marked with slow growth in sales and a very little or no profit. Note that product has been newly introduced, and a sales volume is limited; product and distribution are not given more emphasis.

Basic constituents of marketing strategies for the stage include price and promotion. Price, promotion or both may be kept high or low depending upon market situation and management approach.

Following are the possible strategies during the first stage: This strategy consists of introducing a new product at high price and high promotional expenses. The purpose of high price is to recover profit per unit as much as possible.

The high promotional expenses are aimed at convincing the market the product merits even at a high price. High promotion accelerates the rate of market penetration, in all; the strategy is preferred to skim the cream high profits from market.

This strategy makes a sense in following assumptions: This strategy involves launching a product at a high price and low promotion.

Product Life Cycle Strategies and Characteristics

The purpose of high price is to recover as much as gross profit as possible. And, low promotion keeps marketing expenses low. This combination enables to skim the maximum profit from the market.

This strategy can be used under following assumptions: The strategy consists of launching the product at a low price and high promotion. The purpose is the faster market penetration to get larger market share. Marketer tries to expand market by increasing the number of buyers. It is based on following assumptions: They prefer the low-priced products.

Discuss the different strategies to be adopted in product life cycle

They need to be informed and convinced. The strategy consists of introducing a product with low price and low-level promotion. Low price will encourage product acceptance, and low promotion can help realization of more profits, even at a low price.

Assumptions of this strategy: Marketing Strategies for Growth Stage: This is the stage of rapid market acceptance.Product life cycle & marketing strategies 1.

GOVT. opportunities and problems to the caninariojana.com Profits rise and fall at different stages of the product life caninariojana.com Products require different marketing, financial, manufacturing, purchasing, and human resource strategies in each life – cycle stages.

Product Life Cycle Sales and. Product Life Cycle Stages and Strategies The product life cycle (PLC) is a series of phases that a product will go through in its “lifetime” in relation to . The product life cycle proposes that a product goes through a life cycle like humans go through different stages of life.

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.

Advertising strategies change with the change in stages of a product life. i.e. PLC This article focuses on changes in way of advertising when PLC stages changes.

New Product Development Product and Product Strategies

Every product goes through a series of stages, namely the introduction, growth, maturity, decline. Product passes through four stages of its life cycle. Every stage poses different opportunities and challenges to the marketer.

Each of stages demands the unique or distinguished set of marketing strategies.

Discuss the different strategies to be adopted in product life cycle

A marketer should watch on its sales and market situations to identify the stage in which. Product passes through four stages of its life cycle. Every stage poses different opportunities and challenges to the marketer. Each of stages demands the unique or distinguished set of marketing strategies.

A marketer should watch on its sales and market situations to identify the stage in which.

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