Hello, I’m Jim Glover, That Branding Guy for Once a Day Marketing™. Today is Smart Monday and we are going to take a look at the classic product life cycle and how that impacts your marketing.
It's interesting to note that products evolve a lot like people. They are born, grow, mature, age and then pass on. There are four stages to the classic product life cycle: introduction, growth, maturity and decline.
Introduction is when an idea is transformed into a product and introduced into the market place. Production and marketing costs are initially high and profits may be low at the outset.
Next is growth. Sales are climbing, consumers are adopting the product and the company is beginning to make a profit.
In the maturity phase the product has been on the market for a while. Sales are still climbing but profits are declining because competition has now entered the market. Other companies like the original product so they are emulating it and taking away market share. This is the point in time before the product starts going into decline and marketers have to consider how they are going to remarket this product.
During the decline stage when sales and profits are falling off, a business has to decided whether they want to reinvent the product or if they want to retire it and bring a new innovation into the market place.
The product life cycle requires that you take a long-term look at introduction through decline for your product. It's important to know that you can alter your marketing anywhere in the process based on the marketing mix that is required at that time. At introduction perhaps you employ more promotion strategies and later on move into leveraging pricing strategies.
It is crucial to understand that the product life cycle for every product is different. Some may rapidly go up and then decline and others might take longer so you have to be the expert in analyzing your own product life cycle to determine the marketing strategies that you will use.
That concludes Smart Monday. Please join us tomorrow for Strategic Tuesday. To discuss an online or onsite service engagement and enhance the marketing and branding for your organization, contact James Glover: (505) 501-1330 or firstname.lastname@example.org. I’m Jim Glover, That Branding Guy, for Once a Day Marketing™ and we’ll see you next time.
© 2012 Once a Day Marketing™. All rights reserved.