PRODUCT LIFE CYCLE STRATEGIES

1. INTRODUCTION OR PIONEERING STAGE At the Introduction or development stage market size and growth research is slight. It is possible have that been substantial incurred in and development costs

getting the product to this stage. Launch promotion. Set-up distribution channels. Initial advertising. Introduction of two or more products by one firm

should not become competition. The firm anticipates effects of product design.

2. GROWTH STAGE The rowth Stage is characterised by rapid growth in sales and profits. !rofits arise due to an increase in output and possibly better prices "economies of scale#. $irm invests in increasing market share by% $re&uent buyers rewards program. Tie a discount to a specific amount. 'g. ()* off for every !+!,)).)) purchase. -ffer merchandise as rewards to fre&uent buyers. 3. MATURITY STAGE The .aturity Stage is/ perhaps/ the most common stage for all markets. It is in this stage that competition is most intense share. !roduct modification and improvement. as companies fight to maintain their market

Improve production efficiency and &uality. 0rand differentiation and feature diversification is emphasized. !rice promotion.

4. DECLINE STAGE In the 1ecline Stage/ the market is shrinking/ reducing the overall amount of profit that can be shared amongst the remaining competitors. EXAMPLES: Sell products to other cheaper markets. 'nd the product.

PRODUCT LIFE CYCLE POSITIONING

DIFFERENTIATION !rocess market. 1ifferentiated products feature meaningful and valuable differences that distinguishes a company2s offering from the competition. of distinguishing a product or offering from others/ to make it more attractive to a particular target

Source of competitive advantage.

1ifferentiation is due to buyers perceiving a difference/ hence causes of differentiation may be functional aspects of the product or service/ how it is distributed and marketed/ or who buys it. The ma3or sources of product differentiation are as follows%

1ifferences in &uality which are usually accompanied by differences in price. 1ifferences Ignorance purchasing. in of functional buyers and features regarding of or design the goods "hidden

differentiation#.

essential they are

characteristics

&ualities

Sales promotion activities of sellers and/ in particular/ advertising. 1ifferences in availability "e.g. timing and location#.

The ob3ective of differentiation is to develop a position

that potential customers see as uni&ue. GETTING INTO THE MIND OF THE POTENTIAL CUSTOMER The easiest way of getting into someone4s mind is to be first. It is very easy to remember who is first/ and much more difficult to remember who is second. 'ven if the second entrant offers a better product/ the first mover has a large advantage that can make up for other shortcomings. 0y being the first to claim a uni&ue position in the mind the consumer/ a firm effectively can cut through the noise level of other products.

POSITIONING OF A LEADER 5ertain things a market leader should do% 6ot boast about being number one. If a firm was the first to introduce a product/ then the advertising campaign should reinforce this fact. .ultibrand Strategy 7 !roduce multiple brands rather than e8changing e8isting ones. 6ew technologies.

POSITIONING OF A FOLLOWER If a product is not going to be first/ it then must find an unoccupied position in which it can be first. It most likely is a mistake to build a brand by trying to appeal to everyone. There are too many brands that already have claimed a position and have become entrenched leaders in their positions. A product that seeks to be everything to everyone will end up being nothing to everyone. REPOSITIONING A COMPETITOR 9epositioning a competitor by convincing consumers to view the competitor in a different way. POWER OF A NAME A brand4s name is perhaps the most important factor affecting perceptions of it. In the past/ before there was a wide range of brands available/ a company could name a product 3ust about anything. These days/ however/ it is necessary to have a memorable name that con3ures up images that help to position the product.

THE NO-NAME TRAP !eople of tend use abbreviations when they have fewer syllables than the original term. ' is often used instead

eneral 'lectric. I0. instead of International 0usiness

.achines. In order to make their company names more general and easier to say/ many corporations have changed their legal names to a series of two or three letters. Some argue that such changes usually are unwise. THE FREE RIDE TRAP A company introducing a new product often is tempted to use the brand name of an e8isting product/ avoiding the need to build the brand from scratch. $or e8ample/ Alka-Seltzer named a new product Alka-Seltzer !lus.

REFERENCES
http%::www.wiu.edu:art:courses:handouts:positioning.html http%::en.wikipedia.org:wiki:!roduct;life;cycle;management http%::www.tutor<u.net:business:marketing:products;lifecycle.asp http%::www.utdallas.edu:=murthi:!apersubs:0iyalogorsky.pdf http%::sbinfocanada.about.com:od:growingyourbusiness:a:growthstrategy(.htm http%::www.scribd.com:doc:(>?@??,?:5hapter-()-1eveloping-!ositioning-And1ifferentiating-!roducts-Through-the-Life-5ycle http%::en.wikipedia.org:wiki:!roduct;differentiation

http%::www.&uickmba.com:marketing:ries-trout:positioning: