Marketing Strategies During a Product's Life
Review this section with a summary of common strategies for marketing objectives and the 4 Ps related to each stage of the product life cycle. How would you characterize marketing objectives throughout the product life cycle?
The Product Life Cycle as a Management Tool
The product life cycle may be used in planning. Marketers who understand the cycle concept are better able to forecast future sales and plan new marketing strategies. Table 11.5 is a brief summary of strategic needs at various stages of the product life cycle. Marketers must be sure that a product has moved from one stage to the next before changing its marketing strategy. A temporary sales decline should not be interpreted as a sign that the product is dying. Pulling back marketing support can become a self-fulfilling prophecy that brings about the early death of a healthy product.
| Strategies for Success at Each Stage of the Product Life Cycle | ||||
|---|---|---|---|---|
| Category | Introduction | Growth | Maturity | Decline |
| Marketing objectives | Encourage trial, establish distribution | Get triers to repurchase, attract new users | Seek new user or users | Reduce marketing expenses, used to keep loyal users |
| Product | Establish competitive advantage | Maintain product quality | Modify product | Maintain product |
| Distribution | Establish distribution network | Solidify distribution relationships | Provide additional incentives to ensure support | Eliminate trade allowances |
| Promotional | Build brand awareness | Provide information | Reposition product | Eliminate most advertising and sales promotions |
| Pricing | Set introductory price (skimming or penetration pricing) | Maintain prices | Reduce prices to meet competition | Maintain prices |
Source: Rice University, https://openstax.org/books/introduction-business/pages/11-8-the-product-life-cycle
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