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MARKETING MANAGEMENT - Product Life Cycle

Summary of Product Life Cycle

   Posted On :  18.06.2018 10:03 pm

The seller tries to stimulate demand promotion campaigns to get increase public awareness. Explain how the product is used.

Summary
 
 

Introduction

 
 
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
 

Growth

 
 
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 saturated.

 
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.
 

Maturity

 
 
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.
 

Decline

 
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 customers
 
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 pattern
 
2. In the early stages, focus is on products information
 
3. In the later stages, focus is on brand promotion
 
4. Use market segmentation in maturity stage to maintain strong core customer basis. 
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