The stages of the product life cycle and the marketing strategy appropriate to each stage.
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- What is the product life cycle?
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A model describing the stages a product goes through from launch to withdrawal from the market.- Name the four main stages of the product life cycle.
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Introduction, Growth, Maturity, Decline.- What characterizes the introduction stage?
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Product is new to the market, awareness is low, sales volume is small, and there may be limited competition.- What is the primary promotional focus in the introduction stage?
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Building product awareness and educating consumers about the product and its benefits.- What distribution challenge occurs during introduction?
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Limited distribution channels; retailers are hesitant to stock new, unproven products.- What is the sales trend during the introduction stage?
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Sales grow slowly from a low base as the product builds market awareness.- What is the pricing strategy during the growth stage?
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Price typically remains moderate but may be reduced as competition increases.- How does distribution change during the growth stage?
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Distribution expands significantly as more retailers recognize the product's commercial viability.- What is the promotional focus during the growth stage?
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Emphasizing product differentiation and building brand loyalty to fend off new competitors.- What happens to competition during the growth stage?
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New competitors enter the market, attracted by rising sales and profits.- What product changes occur during the growth stage?
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Product features, models, and quality improvements are added to meet consumer preferences.- What is the pricing strategy during the maturity stage?
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Prices are reduced to compete; emphasis is on cost efficiency and competitive pricing.- What is the promotional strategy during the maturity stage?
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Promotional spending intensifies with emphasis on brand differentiation and protecting market share.- How is distribution managed during the maturity stage?
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Distribution is intensive across all possible outlets; the goal is maximum shelf space and availability.- What is the profit situation during the maturity stage?
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Profit margins are squeezed due to heavy competition, price reductions, and promotional spending.
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