What is the life cycle marketing?
The product of the product life cycle is launched on the market, growth, maturity and decline. Each phase of the life cycle must be different for consumers on the market. The life cycle marketing is the practice of promoting, sales and distribution of the product through various phases of their life cycle. During the starting phase, the distribution can be limited because the product is focused on the first adoptors and innovators. Prices in the start phase may be in the premium to obtain development costs or lower than the target price in order to encourage rapid market share. During this period, the product tends to expand from the first adoptors to the mainstream. Reports at this stage of life cycle marketing to distinguish the product from others in the category. During this phase, products that have been launched with limited distribution are introduced in several markets. The marketing of the life cycle during maturity focuses on the defense of the market share. In order to maximize profitability, the company will try not to reduce prices during maturity but increaseCompetition can force prices to reduce. If possible, the company can add functions to a mature product to further distinguish it from competing offers.
decrease is the last phase of the product life cycle. Companies often present a newer version or product model. This can lead to an increase in the sales of an older product at a reduced price. If a newer version of the product is not introduced, the company either terminates the product or drasticas reduce production if there is still a specialized market. Marketing reports on life cycle for declining products usually focus on price as opposed to functions and benefits.
Not all products follow the typical product life cycle. Progress of society or competitors can completely change the order of life cycle or skip phases. Customer behavior may vary from expecting during different phases, which requires more detailed monitoring of customer and market data. SuccessfulThe life cycle marketing plan must be able to adapt to changing market conditions if necessary.