Jerissa Joy C.

Taong

MBA104- Marketing Management

Prof. Ricardo Bartolome

7:30am-10:30am

Formulating Marketing Strategies for the Stages of Product Life Cycle (PLC)

Strategies for the INTRODUCTORY PHASE

Introduction stage is the first stage in the product life cycle. The highlighting factor of this stage is that
the product is new in the market, sales are slow and to push it higher the company must incur heavy
expenditure on advertisement to make it appealing to customers. The following marketing strategies
can use in the introductory phase:

 rapid skimming - launching the product at a high price and high promotional level
 slow skimming - launching the product at a high price and low promotional level
 rapid penetration - launching the product at a low price with significant promotion
 slow penetration - launching the product at a low price and minimal promotion

Strategies for the GROWTH STAGE

The growth stage is the period during which the product eventually and increasingly gains acceptance
among consumers, the industry, and the wider public. During this stage, the product or the innovation
becomes accepted in the market, and as a result sales and revenues start to increase. The following
marketing strategies can use in the growth phase:

 improving product quality

 adding new product features or support services to grow your market share
 entering new markets segments
 keeping pricing as high as is reasonable to keep demand and profits high
 increasing distribution channels to cope with growing demand
 shifting marketing messages from product awareness to product preference
 skimming product prices if your profits are too low

Strategies for the MATURITY STAGE

Maturity Stage: The maturity stage of the product life cycle shows that sales will eventually peak and
then slow down. During this stage, sales growth has started to slow down, and the product has already
reached widespread acceptance in the market, in relative terms. Ultimately, during this stage, sales will
peak. The following marketing strategies can use in the maturity phase:

 market modification - this includes entering new market segments, redefining target markets,
winning over competitor's customers, converting non-users
  product modification - for example, adjusting or improving your product's features, quality,
pricing and differentiating it from other products in the marking

Strategies for the DECLINE STAGE

The decline stage of the product life cycle is the terminal stage where sales drop and production are
ultimately halted. Profitability will fall, eventually to the point where it is no longer profitable to
produce, and production will stop. The following marketing strategies are can use in the decline phase:

 reduce your promotional expenditure on the products

 reduce the number of distribution outlets that sell them
 implement price cuts to get the customers to buy the product
 find another use for the product
 maintain the product and wait for competitors to withdraw from the market first
 harvest the product or service before discontinuing it