Product life cycle marketing mix. Product life cycle & the marketing mix, The 2022-10-21

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The product life cycle is a model that describes the stages a product goes through from its development to its eventual withdrawal from the market. It is an important concept for marketers to understand as it can help inform marketing strategies and tactics.

The product life cycle consists of four stages: introduction, growth, maturity, and decline.

In the introduction stage, a new product is introduced to the market. This is a crucial time for the product as it needs to establish itself in the market and generate consumer interest. To do this, marketers will focus on creating awareness and interest in the product through advertising, promotions, and pricing strategies.

During the growth stage, demand for the product begins to increase and the product begins to gain market share. This is typically a time of high profit for the product as there is a high demand for it and it is still relatively new. Marketing efforts during this stage should focus on building brand loyalty and expanding the product's reach.

As the product enters the maturity stage, demand for it begins to slow down as it has already gained a significant market share. This is a time when the product is well-established and competition may increase. Marketing efforts during this stage should focus on maintaining the product's market share and maximizing profits through effective pricing strategies and promotional efforts.

Finally, in the decline stage, demand for the product begins to decrease as it becomes outdated or is replaced by newer products. At this point, the product may be phased out or withdrawn from the market altogether. Marketing efforts during this stage should focus on maximizing profits while the product is still viable and preparing for the eventual withdrawal of the product.

The marketing mix is a tool that marketers use to effectively promote a product. It consists of four elements: product, price, promotion, and place.

The product element refers to the actual product or service being offered. In the context of the product life cycle, the product element may change as the product moves through the different stages. For example, during the introduction stage, the product may be developed and refined in order to meet the needs and wants of the target market.

The price element refers to the cost of the product to the consumer. Pricing strategies will often change as the product moves through the different stages of the product life cycle. For example, during the introduction stage, the price of the product may be higher in order to recoup the costs of development and to create a sense of exclusivity. In the maturity stage, the price may be lower in order to maintain market share and maximize profits.

The promotion element refers to the marketing efforts used to promote the product. These efforts may include advertising, sales promotions, personal selling, and public relations. The specific promotion strategies used will depend on the stage of the product life cycle and the target market.

Finally, the place element refers to the distribution channels used to get the product to the consumer. This includes both physical and digital channels such as retail stores, e-commerce websites, and social media. In the context of the product life cycle, the place element may change as the product moves through the different stages. For example, during the introduction stage, the product may be sold through select retail outlets in order to build buzz and generate interest. In the maturity stage, the product may be more widely available in order to meet the high demand for it.

In conclusion, the product life cycle and the marketing mix are important concepts for marketers to understand as they can inform the development and promotion of a product. By understanding the different stages of the product life cycle, marketers can tailor their marketing strategies and tactics in order to maximize the success of a product.

APPLICATION OF PRODUCT LIFE CYCLE AND MARKETING MIX

product life cycle marketing mix

The iPod Nano and iPod Shuffle have been discontinued practically due to their inability to connect to the internet. This USP can be used to charge a high price for the product as well as be used in advertising. . As the product gains popularity and wins the trust of consumers, it begins to grow. In this stage, marketers need to focus on creating maximum awareness about the product, introduce it to potential buyers, and convince them to at least consider the product while buying. Profit becomes more of a challenge for production or distribution other than sales and growth. Although many companies show some familiarity with the life cycle concept, few can boast a full awareness of the benefits that its proper management would bring to their business.

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Product Life Cycle

product life cycle marketing mix

Prices and profitability decrease 3. However, e-commerce means an entire new type of marketing strategy is also required — online promotions, new channel of distribution, new pricing strategies since price competition in e-commerce is very high and demand is very price elastic. Companies want to maximize profit and revenues over the entire lifecycle of a product by squeezing the most out of the front end in order to recoup development and advertising costs. However, a company will usually expand its product distribution during the growth stage. Product reaches market saturation. Due to high market saturation, less successful products are usually pushed out of the market.

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Marketing mix and product life cycle

product life cycle marketing mix

The law of demand states that a fall in price increases the demand. The generic life cycle stages used in estimating the cost of ownership. List the four stages of the product life cycle. Strategy Analytics states that the Apple company lightly raised its market share from 54% to 55% by shipping 7. During the mature cycle, you need to build your marketing efforts around your brand; your competitive advantage can be in your reputation, history, and identity and on what differentiates your business from your competitors. The company focused in selling staple products like food, beverages, and household supplies, which customers shopped for on a normal basis.

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product life cycle and marketing mix Flashcards

product life cycle marketing mix

Technological advancements and production shortcuts will also allow competitors to charge lower prices for their products. Low initial sales volumes. However, this implies the need to continually modify their marketing strategies according to the different phases of the product life cycle. The Impact of Marketing Mix on the Competitive Advantage of the SME Sector in the Al Buraimi Governorate in Oman. What do these terms mean, and what is their relevance in our every day activities? To increase marketing share, the stages in growth phase includes 1 providing new customer service, such as free guarantee for three months; 2 increasing number of outlets and stores in main cities of China, like Beijing, Shanghai, and Guangzhou, and 3 a set of promotion strategies, such as increasing advertising through TV, magazines and radio. For example, in the introductory stage, product awareness is required, and in the maturity stage, brand loyalty is required. Promotion is the strategy that businesses frequently employ utilizes to create demand for a product.

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Product Life Cycle and Product Marketing Mix

product life cycle marketing mix

Apple is one such company- their brand image is so reputed that new products that they launch now become an immediate success. Other companies latch on to the original product and emulate it, resulting in reduced market share. At this stage, the company need to focus upon creating demand and driving brand awareness higher. The changing role of marketing: transformed propositions, processes and partnerships. Otherwise, the best option may be to withdraw or end the product. An increase in loyalty among the profitable customers in the business usually leads to higher customer equity.

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How Product Lifecycle Influences Marketing : Once a Day Marketing

product life cycle marketing mix

With effective PR and marketing, Maggi proved itself to be safe for human consumption and brought itself back by branding it as safe for consumption. As you consider the marketing program, what types of strategy should you consider including in the plan? The Growth stage is means a period of rapid market acceptance and sub-stantial profit improvement. Marketing your products and services is not something that you do once such as a marketing plan and then never change or do again. . Expand your market reach. It provides an in-depth situational analysis, opportunity analysis, marketing mix program, and action plan with measurements in place to enable us to track progress, or lack of it.

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Marketing Mix Product Life Cycle

product life cycle marketing mix

A good example is a factory outlet where products directly arrive at their own shop from the factory and are sold to customers. The marketing at this stage was focused on creating product awareness along with doing several product modifications as per the Indian taste. Marketing related efforts also decline at this stage. Visit our website at www. Bestpractice Internationalisation SME Foreign markets International marketing International marketing Most marketing executives would be familiar with the idea of the Product Life Cycle PLC , but perhaps far too less are reaping its advantage to plan effectively. What is Your small business marketing strategy must include a product life cycle review. Maturity is the vital stage where it is chosen to either let a product slip into decline or to reinvent the product to start anew.

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The Product Lifecycle

product life cycle marketing mix

Second is Growth: Growth is the second stage in the product life cycle. Stage 4: Market Development - Entry into this stage is marked by the first customer shipment, and exit is usually marked by company acquisition or IPo. During this period, they marketed new product variations under the brand like ketchup, pasta, soup, oats but never shifted their focus from the original product. Fourth Stage: Decline Profits are starting to reduce during this stage. The product life cycle is drawn like a bell curve.

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