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.
Introduction Stage
In the introduction stage, the firm seeks to build product awareness & develop a market for a product. The impact on the marketing mix is as follows:
• Product :- Branding & quality level is established & intellectual property protection such as patents & trademarks are obtained.
• Pricing :- The pricing strategy maybe one of ‘low penetration pricing’ to build market share rapidly, or ‘high skim pricing’ to recover development costs.
• Distribution :- It is selective until consumers show acceptance of the product.
• Promotion :- It is primarily aimed at innovators & early adopters. Marketers seek to build product awareness & to educate potential consumers about the product.
Growth Stage
In the growth stage, the firm seeks to build brand preference & increase market share. The impact on the marketing mix is as follows:
• Product :- The product quality is maintained and additional features & support services maybe added.
• Pricing :- The price is maintained because the firm enjoys increasing demand with little or no competition.
• Distribution :- Sales channels are diversified & increased as demand increases & consumers start accepting the product more & more.
• Promotion :- It i ...