First, is the production stage, in which the product is manufactured, processed or harvested. From there, the product goes through four key phases, which comprise the life cycle: What Is a Product Life Cycle?
In the maturity stage, sales may still be increasing, but the rate of revenue growth for the product or service has begun to slow down. With each stage of the product life cycle, marketing theorists recommend different marketing strategies. The primary objective in the maturity stage is to extend that stage as long as possible.
A small-business owner does not want the product's sales to drop from one period to the next -- an indication the product is entering the decline stage.
Emphasize Customer Service In the maturity phase, it is often more difficult to acquire new customers. To keep sales from slipping, it is imperative that you retain loyal customers by keeping them satisfied.
Have an ongoing campaign to obtain customer feedback regarding the level of customer satisfaction you and your staff provide.
Increase your level of interaction with customers through means such as email newsletters in which you provide information to enhance the benefits they receive from your product.
Encourage customers to be members of your marketing team and recommend the product to their friends or colleagues.
Reward word-of-mouth recommendations with discounts on the customer's next purchase. Change the Marketing Message or Media Introducing fresh themes to your marketing message helps customers see your product or service in a new way. Emphasize other product benefits or uses for the product than what you have employed in advertising and promotion in the past.
Changing the media you use can also stimulate new interest in the product. Increase your social media presence so you have more opportunities to reach out to customers.
Make sure your website presents the product's advantages in a compelling way. Grand Re-Opening Service businesses such as restaurants can make a dramatic marketing statement by closing for a short time, changing the decor and menu, and then having a grand re-opening party.
This strategy creates the opportunity for free publicity from the print or electronic media.
Introduction stage – Product Life Cycle Strategies. The introduction stage is the stage in which a new product is first distributed and made available for purchase, after having been developed in the product development stage. They are green marketing strategy, effective marketing strategy, social network marketing strategy, relationship marketing strategy, product market strategy and innovation types, product life cycle based marketing strategy, sustainable marketing strategy, marketing strategy for SMEs, market expansion strategy, innovative marketing. The product life cycle theory draws an analogy with the life cycle of human beings, in that every product in a market is mortal. In the world of biology, each stage in the cycle is fixed, with one stage following on from another in both an invariable and irreversible order.
In addition, past customers will regard your business concept and product offering as brand new and may do business with you again. Some companies have been able to take their product or service out of the maturity stage and back to a rapid growth phase through this strategy of redesign or reinvention.
Improve Operational Efficiencies The maturity phase of a product's life does not mean it is no longer profitable.
Its steady rate of sales makes it a valuable "cash cow," particularly if operational efficiencies are made to reduce production cost per unit and increase gross margin. Harvest Strategy If you determine the product is nearing the point when it will enter the decline phase, you may elect to "harvest" as much cash flow as you can from the product before discontinuing it.Marketing strategy is a long-term, forward-looking approach to planning with the fundamental goal achieving a sustainable competitive advantage.
Strategic planning involves an analysis of the company's strategic initial situation prior to the formulation, evaluation and selection of market-oriented competitive position that contributes to the company's goals and marketing .
Introduction stage – Product Life Cycle Strategies. The introduction stage is the stage in which a new product is first distributed and made available for purchase, after having been developed in the product development stage.
This product life cycle management process involves a range of different marketing and production strategies, all geared towards making sure the product life cycle curve is as long and profitable as possible. marketing and the product life cycle concept, respectively, should be adapted for SMEs.
Williams () and Gerson () identi”ed a set of new ‘Ps’ for assisting SMEs in their marketing. The Impact of Market Orientation and Marketing Strategies on Performance of SMES in Batik Industry Based on the description above, a hypothesis can be developed: management of the company should conduct strategy of product life cycle.
Pricing Strategy Price can provide satisfactory financial performance (Kotler ). For the development of effective marketing strategies, an understanding of the different characteristics of the product life cycle stages is absolutely crucial.
Based on this understanding, marketing implications can be derived.