Product life Cycle
Transcript: Product life Cycle This stage usually presents the following scenario: Thanks If the product is in the new product class, the users may not be aware of its true potential. In order to achieve that place in the market, extra information about the product should be transferred to consumers through various media. The stage has the following characteristics: 1. Low competition 2. Firm mostly incurs losses and not profit This is the stage of low growth rate of sales as the product is newly launched in the market. Monopoly can be created, depending upon the efficiency and need of the product to the customers. A firm usually incurs losses rather than profit. It is in this third stage of the product life cycle, sales growth is reduced and / or stopped. The distinguishing features of this stage are: In a first stage, sales are still increasing but at a decreasing rate, until the time comes when it stops. Competition is intense, although the number of competitors tends to stabilize first, and then begins to decrease. The product lines are lengthened to attract additional market segments If a product category satisfies the market and survive the introduction stage, enters the second stage of the product life cycle is known as the GROWTH stage, in which sales begin to increase rapidly. Is the stages through which a product or its category bypass. From its introduction to the marketing, growth, maturity to its decline or reduce in demand in the market. Not all products reach this final stage, some continue to grow and some rise and fall. The promotion aims to persuade to achieve brand preference. The distribution of being selectively passes intensive. There comes a time when sales decline, on most products by changes in technology, competition, or the loss of interest by the customer. Often prices fall and profits are reduced. Sales rise quickly. Many competitors enter the market. Maturity Profits increase, as unit manufacturing costs fall and promotion costs are spread across a larger volume. Customers who purchase the product at this stage are the early adopters. Growth Introduction There is intense price competition. There is a strong promotion (which aims to persuade) that aims to highlight the differences and benefits of the brand. Distribution activities are even more intensive than in the growth stage.The profits of producers and intermediaries decay mainly by intense price competition. Customers who buy at this stage are the most average Marketing strategies in the mature stage Displayed products with new features (extensions of product, service or warranty). Prices decline gradually as an effort by companies to increase sales and market share. Decline You can expand the market for a mature brand if handling the two factors that make the sales volume: Volume = x level users by brand The company has three ways to expand the number of users: - Convert to non-users. - Entering new segments mcdo. - Winning customers from competitors. Three strategies: - Typical use - More use by occasion - Uses new and more varied
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