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| *Ostroff, Fair and Company>>>Other - Advertising & Marketing |
What are the various strategies opted by marketer at various stages of Product Life Cycle ? |
What are the various strategies opted by marketer at various stages of Product Life Cycle ? Products tend to go through the following five stages: New product development stage * very expensive * no sales revenue * losses Market introduction stage * cost high * sales volume low * no/little competition - competitive manufacturers watch for acceptance/segment growth * losses * demand has to be created * customers have to be prompted to try the product Growth stage * costs reduced due to economies of scale * sales volume increases significantly * profitability * public awareness * competition begins to increase with a few new players in establishing market * prices to maximize market share Mature stage * costs are very low as you are well established in market & no need for publicity * sales volume peaks * increase in competitive offerings * prices tend to drop due to the proliferation of competing products * brand differentiation, feature diversification, as each player seeks to differentiate from competition with "how much product" is offered * very profitable Decline or Stability stage * costs become counter-optimal * sales volume decline or stabilize * prices, profitability diminish * profit becomes more a challenge of production/distribution efficiency than increased sales * consumer demand for spare parts, maintenance and or product servicing Source(s): ~*~ |
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