STRATEGIES ALONG THE PLC

CHAPTER 11
Strategies for each stage of the PLC:
Introduction stage strategies continued…
• marketing product set a high prices with rapid communication
campaigns is known as a rapid skimming strategy
• marketing products at a high prices with slow communication
campaigns is known as slow skimming strategy
• rapid penetration refers to marketing at low prices with
extensive communications campaigns supporting the launch
• slow penetration refers to marketing at low prices with limited
communication campaigns supporting the launch
• distribution must ensure there are enough products in the
market as a large demand is potentially being created for the
product or companies can send limited stock into the market to
further stimulate demand
• three types of distribution – exclusive (one outlet), selective or
limited (few outlets) and intensive (many outlets)
Growth stage strategies
• increase number of product models to some degree, focus is on
producing sufficient quantities of the product
• reflect on price as competitors enter the market at this stage (high
quality, value for money or lost cost?), price is often adjusted down
slightly here, positioning plays a role in pricing
• consumers are aware of the product now through communications
and emphasis needs to be shifted to reminding and convincing
customers to buy the product (informing was done at the
introductory stage)
• use advertising to differentiate the product from competitors
products
• distribution is generally expanded at this stage
• distribution needs to be intense as consumers will switch to other
products if there are not enough of the relevant products available
Maturity stage strategies
• it is believed that there are 3 levels of maturity – growth
maturity, stable maturity and declining maturity
• the existing marketing strategy can just be retained
• the existing product can be retained but other marketing
efforts can be revised
• everything about the product, its marketing campaign,
etc. can also be changed
• don’t release new models but facelift existing models,
retain main features
• prices can sometimes drop at this stage
• less money is invested in advertising in terms of trying to
attract new customers and there is more focus on
retaining customers
• customer retention and loyalty at this stage is key as it is
only a matter of time before a better, more sophisticated
product comes in and takes the place of this one
Decline stage strategies
• customers have switched to better, more exciting
products at this stage
• prices definitely drop at this stage as businesses are trying
to save costs on these old products
• businesses can just carry on with existing marketing
strategies
• the marketing strategies can also be revised partially
• products can also be withdrawn completely from the
market
• businesses launch new products to replace these dying
products
• distributers do not want to stock this product anymore as
they want to make space for newer, innovative products