Product life cycle and its stages

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2020-07-02 22:59:06

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Every new product coming to the consumer market, is destined to pass through four periods. The stages of the product life cycle are called as follows: introduction, growth, maturity and decline. No matter how high-quality new product after a certain period of time it will displace from the market the improved model.

The Life cycle of the product starts to market – the implementation phase. The most important period for news. The task of the marketers – prepare the market. The course is wide advertising: promotions, distribution of samples, commercials on television, banners on the street, etc, everything is done to the output of goods on the market was accompanied by high demand. Often the producer has substantial losses. But they help to convey information about the brand to the consumer, to excite his desire to try something new. The firm is ready to losses of the first year, because he knows that they are the so-called springboard for high profits in the future. If the manufacturer wants to conquer the market by high product quality, excellent step to attract attention is the distribution of free samples. Consumers will be able to see it in the future when choosing a shop, will be ready to acquire any product. At this stage you can use two kinds of pricing: low cost or high.

Most of the production manufacturers at the initial stage establish a low cost to attract buyers. In the end, if consumers like the product, they are willing in the future to buy it for a great price. Products series “Suite” producers immediately set up a higher cost. This strategy in marketing is called "skimming". Rich people are willing to pay a high price for a really high quality. Gradually the price will decrease, but this move will be made by the supplier to gain a larger market.

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We Continue to consider the life cycle of products. The second phase – growth. At this step, the manufacturer's profit continues to increase, but more rapidly. This is due to the fact that those people who have already bought the product and start to buy it again. But the firm does not stop and continues to make high advertising costs, gaining even more attention of consumers. And the novelty of buying an increasing number of people, as it becomes more known. Here plays a role not only advertising, but also the recommendations of consumers who have tested the product. Therefore, the manufacturer receives more net income.

What other processes of the product life cycle happen? It is at this stage often active in the fight enter the competition. And the firm has to invent new methods of retaining customers. Alternatively, you can slightly reduce prices, expand the range of goods (for example, shampoo against dandruff, for men, for hair, etc.), to create a creative advertising, etc.

Product Life cycle includes a stage of maturity. It profit the manufacturer receives for the account of repeat purchases by consumers of goods. Covered segment of the market practically does not change. The item has taken a stable position in the market, it is well known to the General public. The attacks of competitors has little impact on the policy of the organization. But the profits of the manufacturer has not increase and sometimes start to fall. He can still use a variety of innovative actions, for example, to find a new use for the product. Advertising no longer has a great effect on the consumer, because the client base developed. To increase the cost of the firm can make the appearance on the market of a strong competitor. In this case, the manufacturer lists a high cost of advertising and looking for new ways of enhancing consumer demand.

The Life cycle of the product ends with a recession. At this stage it is important to decide whether to continue stimulating demand or withdraw the product from production. In the case of a high cost firm removes the product from the market. But if the manufacturer sees that the profit from sales is still quite high, he continues to support the demand, inventing all new and new marketing moves.

 

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