Product Life Cycle of Fads & Trends Essay Example
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 is aimed at a broader audience.
Maturity Stage
At maturity, the strong growth in sales diminishes. Competitors may appear with similar products. The primary aim at this stage is to defend market share while maximizing profits.
• Product :- Features maybe enhanced to differentiate the product from that of competitors.
• Pricing :- It maybe a bit lower than previous stages because of increased competition.
• Distribution :- It becomes
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 is aimed at a broader audience.
Maturity Stage
At maturity, the strong growth in sales diminishes. Competitors may appear with similar products. The primary aim at this stage is to defend market share while maximizing profits.
• Product :- Features maybe enhanced to differentiate the product from that of competitors.
• Pricing :- It maybe a bit lower than previous stages because of increased competition.
• Distribution :- It becomes