Marketing activities in Different Stages of Product Life Cycle
|The products to be used by consumers remain in different stages. So, marketing should pay attention towards the condition/situation of its products and consider what extra facilities should be given t supply to markets. Different activities should be conducted at different stages of the life cycle of the products. Such activities are called marketing activities.|
1. Marketing activities at introduction stage
- Product: When the new products of a firm appear in market, the customers should be convinced that the new products are more useful than the old ones. It is also necessary to justify the utility of the new products is more than the others. Besides, after-sale services and conditions also should be explained to the customers.
- Price: While fixing price of the new products, two main points should be kept in mind. (a) If it is to adopt a policy to earn full profit from a certain market, price should be fixed high. It is called market skimming strategy. (b) Another alternative method can also be applied. If it is to cover greater segment of market, low price should be fixed from which a success can be achieved at the introduction stage of the products.
- Promotion: The consumers should be fully informed about the features, quality and utility of the new products. For this task, heavy advertisement, personal selling and other promotional activities should be conducted effectively through which the possible customers can be attracted towards the new product.
- Place: At first, a proper channel should be selected at the introductory stage of the product. After selecting it, efforts should be made to enter the suitable market. If done so, there does not remain fear of failure.
2. Marketing activities at growth stage
- Product: At first, the marketing expert should change the quality of the product; he should include new features in the new product. It is also compulsory to provide effective after-sale services and warranty.
- Price: The customers may be sensitive about price of the new products. So, the firm or producer should adopt a policy to fix low price at appropriate time, by which rational customers can be attracted.
- Promotion: Full knowledge about the product or services should be given to the customers. Information about place and products should be made available in right time and right place. Personal sale, advertisement and other promotional activities should be increased properly.
- Place: The producer should give more importance to the goal of market extension. Easy environment should be created to enter new markets. Such activities popularize the products and cover more area.
3. Marketing activities in maturity stage
- Product: At first improvement should be made in quality at this maturity stage of product. Product differentiation is also equally important. Product mix should also be changed. The products which cannot compete in market should be abandoned. The improved product needs to be made reliable, long lasting and give new taste. Product improvement policy should be adopted for the same.
- Price: At this stage, a healthy and proper competition takes place. So, price should be fixed on the basis of market competition. At this stage, low price should be fixed.
- Promotion: At this stage, marketing expert should pay special attention to brand loyalty. Efforts should be made to increase such activities by properly using sale promotion equipment. After sales services should be made more effective, dependable warranty should also be provided to meet other terms and conditions after sale.
- Place: At this stage, the producer or firm should use new distribution/ supply channel. This activity helps to stabilize product distribution. This activity helps to take new place in new market segment.
4. Marketing activities in declined stage
- Product: Producers or firms produce different types of products. Among them weak or less demanded products should be identified. Decision should be taken to abandon such goods immediately. The market of the weak products should be left uncared without improving the product.
- Price: Demand for some products may continue. So, price should be increased of such products. On the other hand, there may not be demand for some other products; the price of such products should be decreased.
- Promotion: No investment should be made on advertisement, personal sale and other promotional activities without carrying out product research and development. However, some specific market segment may be promoted for target customers.
- Place: Declined stage is the weakest stage in the product life cycle of any product. So, at this stage only especially capable distribution channels should be given permission for product distribution.