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