Acting preemptively often involves risks failure may be visible/ costly.īut the costs of not acting may be significant, particularly for established players. A preemptive strategy means acting before competitors, perhaps targeting an emerging market segment/introducing a new product. Product Life Cycle Stages – 9 Important Scenariosīy anticipating competitor actions - and sometimes their timing - the firm can develop preemptive strategies. (4) Finding new uses for the basic material, e.g., nylon tyres. In the introductory stage, informative advertising is used to build up initial demand for the product while during maturity, persuasive advertising is required to improve the competitive status of the product. Timely recognition of the need to change marketing strategy is essential to maintain growth. In the final stage, operating cost control becomes vital. During the middle phase, skilled distribution and effective dealer control become significant. In initial stages, product design and promotion are important considerations. Thirdly, the concept serves as a framework for taking sound marketing decisions at each stage of the product life-cycle.įourthly, the product life-cycle points out the need for significant and periodic adjustments in the marketing strategy or marketing mix of the firm.Įmphasis on different elements of the marketing mix varies from one stage to another. It can, therefore, be used as a tool of business forecasting. Secondly, the product life-cycle concept shows the expected sales volume and profit margins for a new product at various stages in its life. Introduction Stage:įirstly, the concept indicates that products have a limited life and management must develop new products or improve existing ones to replace them to maintain sales and profits. Every stage creates unique problems and opportunities and, therefore, requires a special marketing strategy.Ī brief description of each stage and the marketing strategy required for it is given below: 1. But sales volume and profit level change from stage to stage as shown in Fig. The length of the cycle and the duration of each stage may vary from product to product, depending on the rate of market acceptance, rate of technical change, nature of the product and ease of entry. These stages in the life of a product are collectively known as product life-cycle. A typical product moves through five stages, namely, introduction, growth, maturity saturation and decline. Like human beings, products also have a limited life-cycle and they pass through several stages in their life-cycle. Product Life Cycle Stages: 5 Stages (With Diagram) Product Life Cycle Stages – Introduction Stage, Growth Stage, Maturity Stage, Decline Stage, Abandonment (With Marketing Strategies) The stages involved in the product life cycle are:- 1.
0 kommentar(er)
