What is the role of the product life cycle in marketing?
The role of the product life cycle in marketing is mainly one of the predictive sales. The different phases of the product life cycles from introduction to maturity are inevitable and usually correspond to the predictable increase and reducing income. In this way, the product life cycle factors allow planning of business strategies in accordance with the marketing mix to maximize the potential of the brand during each phase.
For example, at the earliest phase of the cycle, the product is not well known on its target market, so the promotional part of the marketing mix requires strong emphasis. The entire marketing mix of "product, prices, places or distribution and promotion" is then used strategically to create awareness and suitability with the target group. If the initial phase of the product life cycle in marketing is not effectively processed, the item may not take or attract the attention of its consumer base. Successful management of the product life cycle is essential to all phases, but it is particularly important to create sufficient awareness ofThe brand when new items are introduced on the market.
After a successful initial phase in the product life cycle, sales usually begin to increase. If they do not do so, traders are likely to spend some time developing products and try further promotional strategies. This growth phase of the product life cycle in marketing is often long with great emphasis on creating a strong brand. For example, if the cereal product is not sold as well as expected, market research can be carried out to try to find out how the item could be better sold to address the needs and desires of its target consumer. Traders must pay close attention to the growth part of the product life cycle, because it will usually be the phase that brings the most sales.
When the product experiences maximum growth through life cycle management strategies, that is, the product has matured and new prod over timeUkta in their category tends to reduce sales. The stages of the maturity of the product life cycle in marketing is the last part where the sale will decrease. The amount of revenue that has experienced due to the maturity of the product on the market depends on many factors, such as its relevance to the target audience and the strength of competitors' products. Although the product can continue to be sold in the maturity phase and is still sold reasonably well, the amount of sales in this period is much smaller than in the earlier growth part of the marketing life cycle.