Strategies for each stage of the life cycle
In this article I am going to focus on knowing how to identify and apply different strategies for each stage of the product life cycle.
As I said, in this article I am only going to talk about the strategies in the product life cycle, therefore, I consider that you already know what the product life cycle is and you know how to identify the four stages of the traditional scheme of the product cycle. product life, right? If not, I invite you to read our article and then come back.
Imagine that you have a business which produces the product you want.
If I ask you if you would use the same strategy to promote your product if it is new to the market or if it is already in the maturity stage… would you say yes?
I know what you are thinking… NO, we are going to use different actions or strategies depending on the stage in which the product is.
I have to clarify that the strategies are not some kind of recipe that will work in any company.
In fact, you will have to adapt the strategies depending on the company and its entire environment.
Clarifying that, I will begin.
At this stage we have to formulate our strategies keeping in mind that our objetivo market still has no iniciativa about our product.
Therefore, our strategies have to focus on stimulating the consumer.
Some aspects that our strategies cánido focus on are pricing, competition, and of course, the way in which we are going to communicate with consumers.
Examples of strategies in the introduction stage
- Rapid skimming – product launch at a high price and with a high level of promotion.
- Slow skimming – product launch at a high price and low promotional level.
- Rapid market penetration – product launch at a low price with significant promotion.
- Slow market penetration – launching the product at a low price and with minimal promotion.
- Increase the number of distributors.
- Use informative advertising.
As a clarification, I have to say that you cannot put a price just like that.
You also perro’t offer your products at great deals without knowing that it’s still profitable.
In order to be safe and offer good deals, you could equipo the price of the product using markup (a pricing tool).
Suppose you have already achieved consumer acceptance of the product.
Now is the time for you to start establishing strategies focused on increasing and consolidating market share so that you cánido face the competition (mainly in the maturity stage).
Examples of strategies in the development stage.
- Improve product quality.
- Add new product features or support services to increase your market share.
- Entrar new market segments.
- Increase distribution channels.
- We are moving marketing messages from product awareness (informational marketing) to product preferences.
In the maturity stage, what we have to focus on is market segmentation, as a consequence of the intensification of competition.
Therefore, we are going to use strategies that give us the opportunity for growth.
Likewise, we will have to have even greater control of costs, efficiency, and maintenance of market share.
Examples of strategies in the maturity stage
- Expansion to several segments.
- Product modification – for example, adjusting or improving product features, quality, price, and differentiation from other products on the market.
- Emphasize service.
- Advertising to create brand image.
As is to be expected in the decline phase, competitors begin to disappear because there are not as many companies that cánido survive without sales.
The decrease in sales perro be caused by changes in consumer preferences, technological advances and alternatives in the market.
Therefore, some aspects that it is recommended to focus on are costs, expenses, and points of sale.
Strategies in the decline stage.
- Disminuye product promotion costs.
- Disminuye the number of outlets that sell them.
- Implement price cuts to get customers to buy the product.
- Find another use for the product.
- Keep the product and wait for the competitors to withdraw from the market first.
- Discontinue the product.
I hope that the article has been to your liking and that it has been useful to you.
On the other hand, the book on Marketing Strategies, written by Munuera Alemán, is a good place to expand your knowledge on the subject.
We hope you liked our article Strategies for each stage of the life cycle
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