During this stage, sales growth starts to slow down. Hence, the firm as well as its market competitors starts lowering down their prices, increases advertising and sales promotions. Also, the intense market led weaker competitors to quit. Only those strong enough will be able to precede the competition. A company should consider a different strategy when its product cines ti maturity, either by redesigning the market or its product.
Modifying market is when the company tries to increase consumption if the current product. The currently matured product can also be redesigned its package or style. Consumers may also be encouraged to use the product more often or in new ways. Pricing strategies are flexible during this stage, such as markdowns pr price incentives. Marketers may offer incentives and services to declare offering such matured products, especially from competitors.
Sales promotions and aggressive personal selling can e effective during this period, when competition may require large promotional expenditures. On the whole, just as adopted from Smith et al , this phase is represented by:. The final stage of the product life cycle. According to Lancaster and Jobber , it is when sales begin to fall and already slim profit margins are depressed even further. Customers have begun to become bored with the product and are looking forward to newer, latest products.
Dealers begin to de-stock the product in anticipation of reduced sales. Here, sales and profits sank lower, due to various reasons such as advancement in technology, shifts in consumer tastes or intense competitions.
Such factors have forced many companies to quit the market and for the other remaining companies, they may have to redesign their strategies to stay longer in the market by raising the price to cover cists, re price to maintain market share, or lower the price to reduce inventory.
In other words, distribution of the declining product will be narrowed to te most profitable existing market. Also, the product will not be highly promoted, although advertising and promotions may be used to slow down the decline.
Instead, the firm may even decide to drop the product entirely at the end. Just like the above three phases, this stage is also represented by:.
Below are some factors that supply as market indicators that serve as an aid for a firm in detecting its product maturity and decline….
Buyers have become familiar with the related product and hence, they are unwilling to pay finest price for the product in order to obtain brand security;.
A suitable example for this case is the black and white television sets which due to technological development have lead to the production of color televisions — a definite unpredictable effect on sales of black and white television sets;.
Actually a product life cycle is conceptually simple yet powerful. During the introduction stage, the product is new and not completely understood by most consumers.
Customers that do understand the product may be willing to pay a higher price for a cutting-edge good or service. Production is dependent on skilled laborers producing in short runs with rapidly changing manufacturing methods. The innovator markets mostly domestically, occasionally branching out to sell the product to consumers in other developed countries.
International competition is usually nonexistent during the introduction stage, but during the growth stage competitors in developed markets begin to copy the product and sell domestically. These competitors may also branch out and begin exporting, often starting with the county that initially innovated the product.
The growth stage is also marked by an emerging product standard based on mass production. Price wars often begin as the innovator breaks into an increasing amount of developed countries, introducing the product to new and untapped markets. At some point, the product enters the maturity stage of the international product life cycle and even the global marketplace becomes saturated, meaning that almost everyone who would buy the product has bought it, either from the innovating company or one of its competitors.
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Registered Data Controller No: Accounting essays Architecture essays Business essays Coursework Economics essays Education essays Engineering essays English language essays English literature essays. Medicine essays Miscellaneous essays Psychology essays Religious studies essays Science essays Sociology essays Essays menu. Product Life Cycle With respect to the revenues generated by a product over a period of time, there are various stages that are achieved by any product.
In such a scenario a firm can either: Retain the product at reduced costs and try to innovate with respect to product uses.
The product life-cycle is also a useful framework for describing the typical evolution of marketing strategy over the stages of product life-cycle. This will help in taking sound marketing decisions at different stages of the product life-cycle.
Product life cycle management (or PLCM) is the succession of strategies used by business management as a product goes through its developmental life cycle. The conditions involving the promotion and sales of a product, involving market saturation and advertising vary over time and must be managed as it moves through the different .
- Product Life Cycle A new product progresses through a sequence of changes from introduction to growth, maturity & decline. This sequence is known as the “Product Life-Cycle” & is associated with changes in the marketing situation, thus impacting the marketing strategy & the marketing mix. First and foremost, before proceeding into the product life cycle strategies, lets define what a product life cycle is. According to Griffin and Ebert (), a product life cycle is a series of stages through which it passes during its profit -producing life.
Free Essay: The Product Life Cycle Every product have a beginning and have an end which means they have a life span. The stages through which individual. THE PRODUCT LIFE CYCLE A product's life cycle (PLC) can be divided into several stages characterized by the revenue generated by the product. The life cycle concept may apply to a brand or to a category of product.