1) Introduction, main stages in the development of a product.
2) Growth stage.
3) Maturity stage.
4) Deletion and or death.
PRODUCT LIFE CYCLE
A product is anything that can be offered to the market (willing and able buyers) for consumption (used to satisfy their wants and needs).
Product life cycle refers to the series of stages in hich a product sales revenue and profit increase or is presented. It describes the stages a new product goes through in the market place. It’s the life of a product. Just like in human growth there are stages involved in the growth of a product.
Firms must be able to launch, modify, and delete products and ...view middle of the document...
These characteristics include:
a) Low customer awareness. Customer does not know about the product.
b) Low product acceptance. This is also because customer does not know about the product
c) Sales rise gradually due to promotion and distribution activities. The slow growth in sales is because potential customers are not aware and those aware are still deciding on whether to adopt the product.
d) Low profit or break even loss due to high development and marketing. At this stage there are heavy investments and low sales. Heavy investments include: advertisements, initial capital, product and market research
e) Relatively few competitors
f) Market sets high or low levels of each marketing mix variables depending on the marketers objectives and marketing conditions
g) Sometimes price is high- mobile phone charges
• Product shard be priced to attract the particular market
• Plans for distribution and promotion should suit the target market
Strategies for success .
The products in this stage require several strategies to ensure their success. These strategies include:
❖ The product should be adequately promoted.
❖ The knowledge of research on customers wants and desires should be up to date.
❖ There could be use of personal selling an or test selling.
Examples of product in this stage are: Orange network product and YU network products. They have the characteristics.
As a result of customer satisfaction with the product, repeat buying occurs in addition to first time buying, resulting to an increase in growth of sales.
The products in this stage have the following characteristics:
a) Sales increase rapidly as the product becomes well known
b) Composition and lower unit costs (due to mass production) results to lower price.
This is due to the fact that production increases and enjoys some bit of economies of scale.
c) The increase in sales translates to an increase in profit per unit.
d) Organizations modifies product and expands distribution to meet needs of
e) Management’s goal is to build brand loyalty through promotion
Strategies for success.
For products in this stage to succeed there are actions that need to be affirmed/ taken this include:
❖ There should be product quality improvement. This is to ensure the product properly satisfies the consumer so as to ensure the buy the product again.
❖ Venture into new market. The managers should expand the market of the product so as to increase the sales.
❖ They managers should shift the emphasis of the advertisement from informing to convincing potential buyers.
Examples of products in the growth stage are: Mpesa, Alvaro and Novida
This is the stage where the product has developed to its region of highest potential (with comparison to the past). The product usually has either increasing/ constant/ decreasing profits. This stage has some minimal components. These component are: growth-maturity (transition from...