Discussion Forum Unit # 4

Introduction
The term product life cycle represents the length of the period a product is offered to buyers
into the market until it's taken from the stores. (M. KOPP, 2020). This concept includes 4
stages and the below are the stage along with its example via Pettinger (2019) research:

Introduction: Self-driving cars are now in the prototype phase, but companies hopefully will
be able to sell relatively quickly to early investors.

Growth: Electric cars still must reassure individuals that they will function and be feasible.

Maturity: Ford Focus is an established vehicle. It has a strong reputation as a brand and has
achieved its peak market growth level.

Decline: sales of diesel cars have dropped significantly due to pollution, and the diesel car
market could be in terminal decline. also, it contributes to guiding decision-makers, from
pricing and promotion to expansion or reduced costs.

Each of the stages requires a different set of marketing strategies (Jaideep, 2015). To identify
the stage at which the product is passing through, a marketer should watch over its sales and
market situations and should therefore design effective marketing strategies. The strategy
essentially includes four elements here: product, price, promotion, and distribution. In each
stage of the PLC, the strategy can be formulated through an optimal combination of these
four elements. Such elements of the marketing mix are of varying importance at each stage.

Marketing Strategies for Product Life Cycle Stages:

1. Introduction Stage

Price and promotion are the basic components of marketing strategies for this stage and the
below are the possible strategies:

1. Rapid Skimming Strategy: The introduction of a new product at a high price and at a high
promotional expense, which will recover the profit per unit as much as possible while
convincing the market to do so, even at a high price, merits this product.

2. Slow Skimming Strategy: To introduce a high-price and low-promotion product that will
gain as much as possible gross profit while reducing overall marketing costs.
3. Quick Penetration: Introducing a low-price and high-promotion product that will recover
quickly as it penetrates the market to gain greater market share by expanding the number of
buyers.

4. Penetration Slow: Introduction of a low-cost product and low-level promotion. Low prices
will promote product acceptance and more profits.

For Self- driving cars' marketing strategy improvements, it is preferred to use a Rapid
skimming strategy. Despite the major part of the market is not aware of the product,
Customers are ready to pay the asking price because of the environmental-friendly solution
and it is designed to target the fancy customers till now. The possibility of competition is less
however the firm wants to build up the brand preference.

2. Maturity Stage

Competitors have hit the market. The struggle between them for more share of the market is
severe. for this stage and the below are the possible strategies:

1. To-Do Nothing: Doing nothing can be an effective marketing strategy. Longer or shorter,
the sales decrease is for certain. Marketer keeps trying to preserve cash that can be
invested in new profitable products later.
2. Market Modification: To boost sales by increasing the number of users of the brand and
the percentage of use per customer. In several ways, the number of users can be doubled.
3. Product Modification: To attract potential users and/or higher usage rates per user,
product modification includes improving product characteristics and modifying product
characteristics.
4. Marketing Mix Modification: It can spur sales. One or more elements of the marketing
mix (4P's) should be reasonably modified by the business to attract buyers. Marketing
mix adjustment, as it is easily imitated, should be carefully considered.

For Ford Focus cars marketing strategy improvements, it is preferred to use the Product
Modification Strategy for vehicle options enhancement: this involves enhancing features such
as size, colour, weight, accessories, shape, options, materials, and so on. Feature
enhancement leads to comfort, versatility, and attractiveness. Numerous companies opt for
brand extension to maintain the stage of maturity. And this involves a broad range of
products with slightly different prices that can attract different types of customers.
Finally, the product life cycle is a useful model, which is used in several manners to develop
better marketing strategies and make good decisions to develop a successful business.

References

M. KOPP, C. A. R. O. L. (2020, May 11). Understanding Product Life Cycles. Investopedia.

https://www.investopedia.com/terms/p/productlifecycle.asp#:%7E:text=There%20are
%20four%20stages%20in,ones%20out%20of%20the%20market

Pettinger, T. (2019, November 26). Product life cycle. Economics Help.

https://www.economicshelp.org/blog/140934/business/productlifecycle/#:%7E:text=Example
%20of%20the%20Product%20Life,is%20in%20its%20growth%20ph

Jaideep, S. (2015, April 15). Marketing Strategies - Stages of Product Life Cycle. Your
Article Library. https://www.yourarticlelibrary.com/marketing/marketing-strategies-stages-
of-productlifecycle/48630