Managing product life cycle

Jul 20 • General • 1242 Views • 1 Comment on Managing product life cycle

Every product has to undergo different stages of product life cycle, but it is very important to manage the product across different stages of the product life cycle. Given below are the different marketing characteristics and the behavior of each across different stages of the life cycle.

Introduction stage   Managing product life cycle

Sales- low sales of the company

Profit – marginal or loss of the firm

Strategic thrust- market development strategy is used

Customer target – non-users, innovators

Competition – few, less known due to new development of product

Differential advantage – superior performance, new benefits offered to the customers

Product – unique offering in the product range

Price – low or premium to attract the customers

Promotion – incentive to use

Advertising – awareness building of the product

Distribution – build network to gain access to channels

Growth Stage

Sales- fast growth in the sales of the company

Profit – rapid rise in the profits of the firm

Strategic thrust- market penetration strategy is used

Customer target – form new segments of the customers to target

Competition-  intensive growing with time due to the popularity of the product

Differential advantage- unique brand name, corporate identity of the product offering by the firm

Product- improvement on early innovation made during the introduction stage

Price-  low with high volume to gain attention of the customers

Promotion- heavy to spread awareness in different markets

Advertising – brand name, performance focussed

Distribution – fast spread out due to increased demand for the product range being offered by the firm

 

Maturity Stage

Sales- slow growth in the sales of the company

Profit- falling margins and less revenue generation

Strategic thrust -defend share

Customer target – shed segments

Competition-  many efficient ones since product start losing its importance with time

Differential advantage- price, unique service delivered

Product -different variety of products

Price-  maintain margin

Promotion-  parity, loyalty formation to reduce efforts in getting new customers which is difficult

Advertising – value for money focussed

Distribution – choose specific territory according to competition

Decline Stage

Sales -decline in the sales

Profit- low margins and less revenue generation

Strategic thrust -cut cost or withdraw the product

Customer target – selective, explore new market

Competition –limited since product has lost its uniqueness

Differential advantage – business experience, low cost producer

Product- rationalize range of products being offered

Price -smaller margin

Promotion -threshold level for reminder in order to regain the similar awareness

Advertising –rationalize approach

Distribution – limited coverage or enter new market

 

 

 

 

 

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One Response to Managing product life cycle

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