what marketing strategies are appropriate at each stage of the product life cycle?
TRANSCRIPT
Competitive dynamics
What marketing strategies are appropriate at each stage of the
product life cycle
PRODUCT LIFE CYCLE
Products have a limited life
Sales pass through distinct stages
Products require different marketing strategies at different stages
Profits rise and fall at different stages
Stages of
Product Life Cycle
Introduction Growth Maturity
Decline
Common PLC patterns
Marketing
Strategies at different stages
INTRODUCTION STAGE
Inform potential consumers
Induce Product
trial
Secure Distribution in Retail Outlets
For long term market leadership
Vision of a mass market
Persistence and Relentless Innovation
Financial commitment and asset leverage
To sustain rapid market share growth
Improve product quality, add new features Enter new market segments
Increase the distribution coverage
Lower price to attract next layer of price-sensitive buyers
MATURITY STAGE
Ways to change the course for a brand
Market Modification
Product Modification
Marketing Product Modification
DECLINE STAGE
Strategies to adopt
Re-stage or Rejuvenate by adding value to the matured product
Price flexibility and Re-branding
Or…
Reduce the product’s manufacturing cost to maintain sales- Harvesting method
Sell the product to another firm - Divesting method
Created by Dipanshu Sehjal, IIIT Allahabad
During a Marketing internship under
Prof. Sameer Mathur, IIM Lucknow
(See www.IIMInternship.com)