The seller tries to stimulate demand promotion campaigns to get increase public awareness. Explain how the product is used.
The seller tries to stimulate
demand promotion campaigns to get increase public awareness. Explain how the
product is used.
Feature, Advantage, Benefits
You will lose money, but you
expect to make profits in the future Sales are low, and profits are below the
line because your costs greater than the amount of money you make You have “negative”
profit Need to spend a lot of money on promotion
A lot is sold- the seller tries
to sell as much as possible other competitor companies watch and decide about
joining in with a competitor product “success breeds imitation”. Growth will
continue until too many competitors in the market – and the market is
At the end of the growth stage,
profits starts, profit start to decline when competition means you have to spend
more money on promotion to keep sales going. Spending money on promotion cuts
into your profit.
Many competitors have joined-the
market is saturated. The only way to sell is to begin to lower the price – and
profits decreases. It is difficult to tell the different between products since
most have the same F.A.B. – features & Benefits. Competitions can get “nasty”
and commercial are intense.
Newer products are now more
attractive – even a low price does not make consumers want to buy. Profit
margin decline – and so the only way to make money is to sell a high volume. To
increase volume you try to.
1. Increase the volume number of customers – get new
2. Increase the amount each customer uses.
Speed of the PLC
Since the intro stage is getting
shorter and something the growth stage doesn’t last too long (because
competitors move in) companies must continually come up with new products.
You can tell when they are in
growth stage because this is when there introduce new model variations and some
improvement to the products.
Products Life Cycle Considerations In Marketing Strategy
1. Understanding that profits have a predictable
2. In the early stages, focus is on products
3. In the later stages, focus is on brand promotion
4. Use market segmentation in
maturity stage to maintain strong core customer basis.
Tags : MARKETING MANAGEMENT - Product Life Cycle
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