Explain factors that influence changes in product strategy: There are mainly four factors which have major effect on product strategy. Namely,     Customer needs Technology Government policies/Laws Product life cycle

Customer needs: products are made to satisfy certain needs and wants of customers to survive and sustain its competitive edge. A business firm must continuously respond to changing customer needs by making changes to product offerings. Needs keep on changing based on environment in which customers operate. So it’s very important for a business firm to keep a close watch on all these factors. Technology: changes in technology can either require product modifications or make products obsolete. For eg.jelly filled telecom cables or replaced by fiber cables Government policies/laws: the changes in govt policies and laws can have effect on product strategy. For e.g.: liberalization in 1991 compelled firms to make changes in product strategy as many players emerged and competition became fierce. PLC: In order to maintain growth in sales and profits, industrial firms decide to drop or modify or develop new products when existing product reach maturity or decline stage. Foe each stage of the product life cycle strategy keeps on changing

3. What changes needed in marketing strategy when a product enters the maturity stage from growth stage in PLC? Marketing strategy when product moves on to maturity stage should be 1)enter new markets 2)keep existing customers satisfied 3)cut marketing expenses ,production and operation costs. Below are the characteristics of various elements of marketing and operations during Maturity stage:

Maturity stage
price promotion Stable. focused on reliability, quality, predictability, new Enhancements. many distributors, alternative channels, offshore sales Direct sales focused on hi-volume, high profit. Focused on cost reductions. Focused on increasing yield and productivity. Distributors take over the service efforts. Local channels lead support. Competition differentiation. aging Well established. Predictable market share every year. limited opportunities for quick gains

distribution sales development manufacturing service support training technology competition market share

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