Product Life Cycling as a Determinate of Marketing Mix and Strategy.

Product Life Cycling as a Determinate of Marketing Mix and Strategy Product Life Cycling as a Determinate of Marketing Mix and Strategy Outline I) Abstract II) Introduction - From the Cradle to the Grave A) Definition B) Types of Cycles C) Marketing Mix III) Product Life Cycle - "The Birth" A) Product Development - The Unforgettable Stage B) Product Awareness C) Price Consideration D) Distribution E) Failure IV) Product Life Cycle - "Growing Pains" A) Brand Loyalty B) Price Alteration C) Distribution D) Increased Advertising V) Product Life Cycle - "Prime of life" A) Product Enhancement B) Price Competition C) Distribution D) Product Differentiation VI) Product Life Cycle - "Retirement" A) Maintain, Harvest, Delete B) Modification/Rejuvenation C) Price Drop D) Market Selection E) Image Reinforcement VII) Conclusion Product Life Cycling as a Determinate of Marketing Mix and Strategy Table Of Contents Introduction - From the Cradle to the Grave . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Product Life Cycle - "The Birth" . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Product Life Cycle - "Growing Pains". . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Product Life Cycle - "Prime of Life" . . . . . . . . .

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Product life cycle

Application Of The Marketing Mix 2. Product The product life cycle is the way products change over the years in order to maintain their place in the market. The product life cycle shows the path of a product from the very beginning right through to its withdrawal of the market. The six stages of the product life cycle are: . Research and Development 2. Introduction/Launch 3. Growth 4. Maturity 5. Saturation 6. Decline For our ice cream business we will first need to research our product and find out how we could make our product better and be more appealing to potential customers. Research and Development involves carrying out all necessary market research on the product and the product would also be tested. It is an expensive stage for the producer as no income is being received so the producer would be anxious to get his product on the market. The next stage is Introduction or Launch this involves promoting your product in order to make the public aware of it. In the case of our own ice cream business we have designed ice cream posters, which we have put around the school so that all students know when we will have our sale. We also gave out letters to form teachers so they could read out to their form class that there would be an ice cream sale on Thursday 29th September. Sales would be slow at this point but would increase dramatically because of the low

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  • Level: GCSE
  • Subject: Media Studies
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Compare and contrast how the marketing mix changes over the product life cycle for specialty good versus a convenience good.

Compare and contrast how the marketing mix changes over the product life cycle for specialty good versus a convenience good. Convenience products are typically inexpensive items consumers use frequently and purchase with minimum effort and comparison (Hoffman et al, 2003; Kotler et al, 2001). On the other hand, specialty goods have unique characteristics and brand identification, where the product reflects the consumer's personality and self image (Hoffman et al, 2003; Kotler et al, 2001). Any product introduced onto the market will undergo a product life cycle (PLC). The PLC recognises that there are distinct stages in the sales history and profitability of a product (Paladino, Dr. A, 2004). These stages are characterised by introduction, growth, maturity and decline. As a product progresses through its lifecycle, changes in marketing strategies are required in order to adjust to the changing environment. Marketing mix refers to a set of variables implemented by a company to achieve its objectives, by marketing its products effectively to specific target groups (Miller, 2001; The Chartered Institute of Marketing, 2001). It consists of Product, Price, Place, Promotion, People, Process and Physical evidence. Here, we will only focus on Product, Price, Place and Promotion variables, referred to as the 4 Ps of marketing. Companies will adopt different marketing strategies

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Extending Product Life Cycle Stages

Extending Product Life Cycle Stages Gabriel Steinhardt, MBA Abstract The Product Life Cycle (PLC) model is introduced and its merits and faults are addressed. Considerations, ways and reasons to extend PLC stages are explained. Examples are provided to show how product marketing and management strategies can be used at different PLC stages to help establish market dominance and drive sales. . Introduction Businesses are always seeking better ways to grow profits and maximize revenue from the sale of products or services. Revenue allows a company to maintain viability, invest in new product development and improve its workforce; all in an effort to acquire additional market share and become a leader in its respective industry. A consistent and sustainable revenue stream from product sales is key to any long-term investment, and the best way to attain a stable revenue stream is a Cash Cow [i] product. Cash Cows are leading products that command a large market share in mature markets. Cash Cows display a Return On Investment (ROI) that is greater than the market growth rate, and thus produce more cash than they consume. The question is therefore: How can a company develop a Cash Cow product? One way of doing so is by applying relevant product marketing strategies, a.k.a. competitive moves, at the various stages that make a Product Life Cycle (PLC). The Product Life Cycle

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Product life cycle

Product life cycle Stage1- Development The business invests a lot of money into researching the market for the new product, developing the product, and market testing the product. At this stage of the life cycle the product is making no money for the company: on the contrary, it is COSTING money for the development. Stage 2- introduction The product is launched on the market. A promotion campaign and a large amount of advertising will take place at this stage. The product is still making a loss for the business, as sales are low. Stage3-Growth The product becomes known in the market: sales should start to increase. Advertising is continued, but less frequently than at the launch. The product should begin to make a profit. Stage 4- Maturity The product is now well established in the market. Promotion will be used to remind the consumer about the product. This is when the product reaches its highest sales and profit levels. At this stage the business may use an EXTENSION STRATEGY to prolong maturity. Stage 5-Saturation The market for the product becomes SATURATED. The only way to increase sales at this stage is to take them from competitors. Promotion strategies are used to do this. At this stage the business may also use an extension strategy to delay the products decline. Stage 6-Decline The product begins to lose its competitive edge. More rival products are

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Product Life Cycle

Product Lifecycle The Product Life Cycle is based upon the biological life cycle. For example, a seed is planted (introduction); it begins to sprout (growth); it shoots out leaves and puts down roots as it becomes an adult (maturity); after a long period as an adult the plant begins to shrink and die out (decline). In theory it's the same for a product. After a period of development it is introduced or launched into the market; it gains more and more customers as it grows; eventually the market stabilises and the product becomes mature; then after a period of time the product is overtaken by development and the introduction of superior competitors, it goes into decline and is eventually withdrawn. However, most products fail in the introduction phase. Others have very cyclical maturity phases where declines see the product promoted to regain customers. Introduction. The need for immediate profit is not a pressure. The product is promoted to create awareness. If the product has no or few competitors, a skimming price strategy is employed. Limited numbers of product are available in few channels of distribution. Growth. Competitors are attracted into the market with very similar offerings. Products become more profitable and companies form alliances, joint ventures and take each other over. Advertising spend is high and focuses upon building brand. Market share tends to

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  • Level: AS and A Level
  • Subject: Business Studies
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Concept of Product Life Cycle

The concept of the product life cycle (PLC) is one of major tools used in developing marketing strategy. This theory is more and more popular in recent years, because many marketers desire for a tool to help them understand the product's development which means all products have their own life time as they eventually decline and disappear. Based on that understanding of the product, the marketers can adapt their marketing strategy and find a new product to replace the dying one. According to Brassington and Pettitt (2003), the PLC concept explains the life of a product in terms of birth, growth, maturity, decline and eventual death which is based on the assumption that the product has a life like a human. During its life, the product goes through different stages, and in each stage it has different performance in the market which includes different market growth rates and different competitive conditions. This implies the marketer must set up different marketing strategy for each stage to suit for the development of product. The aim of this essay is to discuss the concept of product life cycle which can give the marketer some basic information about this popular concept. Firstly, the general background of the product life cycle is given which includes the concept and the stages of PLC. Secondly, the strengths and weaknesses of the product life cycle are discussed. At the

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Extending the product life cycle -case study

Extending the product life cycle A Kellogg's case study Page 1: Introduction Businesses need to set themselves clear aims and objectives if they are going to succeed. The Kellogg Company is the world's leading producer of breakfast cereals and convenience foods, such as cereal bars, and aims to maintain that position. In 2006, Kellogg's had total worldwide sales of almost $11 billion (£5.5 billion). In 2007, it was Britain's biggest selling grocery brand, with sales of more than £550 million. Product lines include ready-to-eat cereals (i.e. not hot cereals like porridge) and nutritious snacks, such as cereal bars. Kellogg's brands are household names around the world and include Rice Krispies, Special K and Nutri-Grain, whilst some of its brand characters, like Snap, Crackle and Pop, are amongst the most well-known in the world. Kellogg's has achieved this position, not only through great brands and great brand value, but through a strong commitment to corporate social responsibility. This means that all of Kellogg's business aims are set within a particular context or set of ideals. Central to this is Kellogg”s passion for the business, the brands and the food, demonstrated through the promotion of healthy living. The market ________________ The company divides its market into six key segments. Kellogg's Corn Flakes has been on breakfast tables for over 100

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Critically evaluate the usefulness of the product life cycle concept as a tool for formulating marketing strategies.

Critically evaluate the usefulness of the product life cycle concept as a tool for formulating marketing strategies Introduction Since the product life cycle (PLC) concept was first developed from 1950s (Dean, 1950), it had become one of the most quoted and most popular elements of marketing theory and it also had been widely used as a tool for formulating marketing strategy, new product management and product portfolio analysis. However, the PLC model received extensive criticism of its limited applicability and was even regarded as 'a dangerous idea' (Kevin and Peter, 2004). Although the life cycle pattern has its own flaw of nature, the benefits of helping managers to plan strategies are also significant, especially when using the model in the right method and with the reasonable purpose. Characteristics of the Product Life Cycle Just as the biological life cycles progress from birth through growth to maturity, the product has the similar cycle. Michael (1996) described the product life cycle concept as follows: The paradox of the product life cycle concept is that it is one of a very small number of original marketing ideas to enjoy a wide currency and yet is largely discredited in terms of practical application and relevance. Generally speaking, a product life cycle can be divided into four major stages: (1) introduction, (2) growth, (3) maturity and (4) decline and

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  • Level: University Degree
  • Subject: Business and Administrative studies
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Product Life Cycle

Product Life Cycle Businesses decide to introduce a new product when sales when sales of existing products are declining. A new product can increase market share by either appealing to a different age range to its main target or by appealing to everyone because it is new. For example, products such as televisions or computers are constantly changing due to updated technology, therefore newer products are more highly demanded, and therefore it is easier to market to market them. By saying that the product offers newer technology and better designs, the customers are immediately drawn towards it. Introducing a new product to any business is expensive, and runs a risk to the company. This is because even before the new products is created; the research and development department has to research into the needs and wants of the consumers. If they fail to do this all correctly, or if another rival firm brings out a similar or better product, then all the money spent on research and even advertising would have been wasted. If this were to happen, the business would have to consider making staff redundant or declare them selves bankrupt! Every product has its own life cycle, and there are four stages of this life cycle, illustrated on the graph below: A. Research and Development B. Introduction C. Growth D. Maturity E. Decline Point A is the point before the new product is

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  • Level: University Degree
  • Subject: Business and Administrative studies
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