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The document discusses product life cycle strategies. It describes the typical five stages of a product's life cycle as development, introduction, growth, maturity, and decline. Each stage is associated with different marketing strategies. The document also discusses analyzing customers and competitors to understand their behaviors and how they compare to your own business. This information can be used to develop effective marketing strategies throughout a product's life cycle.

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Joseph Francis
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51 views28 pages

Customer

The document discusses product life cycle strategies. It describes the typical five stages of a product's life cycle as development, introduction, growth, maturity, and decline. Each stage is associated with different marketing strategies. The document also discusses analyzing customers and competitors to understand their behaviors and how they compare to your own business. This information can be used to develop effective marketing strategies throughout a product's life cycle.

Uploaded by

Joseph Francis
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Life-Cycle Strategies

Product Life-Cycle Strategies


The Product Life Cycle (PLC) has Five Stages
Product Development, Introduction, Growth, Maturity, Decline Not all products follow this cycle:
Fads Styles Fashions

Product Life-Cycle Strategies


The product life cycle concept can be applied to a:
Product class (soft drinks) Product form (diet colas) Brand (Diet Dr. Pepper)
Using the PLC to forecast brand performance or to develop marketing strategies is problematic

Product Life-Cycle Strategies


PLC Stages
Product development Introduction Growth Maturity Decline

Begins when the company develops a new-product idea Sales are zero Investment costs are high Profits are negative

Product Life-Cycle Strategies


PLC Stages
Product development Introduction Growth Maturity Decline
Low sales High cost per customer acquired Negative profits Innovators are targeted Little competition

Marketing Strategies: Introduction Stage


Product Offer a basic product Price Use cost-plus basis to set

Distribution Build selective distribution


Advertising Build awareness among early adopters and dealers/resellers Sales Promotion Heavy expenditures to create trial

Product Life-Cycle Strategies


PLC Stages
Product development Introduction Growth Maturity Decline
Rapidly rising sales Average cost per customer Rising profits Early adopters are targeted Growing competition

Marketing Strategies: Growth Stage


Product Offer product extensions, service, warranty Price Penetration pricing

Distribution Build intensive distribution


Advertising Build awareness and interest in the mass market Sales Promotion Reduce expenditures to take advantage of consumer demand

Product Life-Cycle Strategies


PLC Stages
Product development Introduction Growth Maturity Decline
Sales peak Low cost per customer High profits Middle majority are targeted Competition begins to decline

Marketing Strategies: Maturity Stage


Product Diversify brand and models Price Set to match or beat competition Distribution Build more intensive distribution Advertising Stress brand differences and benefits Sales Promotion Increase to encourage brand switching

Product Life-Cycle Strategies


PLC Stages
Product development Introduction Growth Maturity Decline
Declining sales Low cost per customer Declining profits Laggards are targeted Declining competition

Marketing Strategies: Decline Stage


Product Phase out weak items Price Cut price Distribution Use selective distribution: phase out unprofitable outlets Advertising Reduce to level needed to retain hard-core loyalists Sales Promotion Reduce to minimal level

Customer & Competitor Analysis

Customer Analysis (What to Analyze?)


Who buys and uses the product / service What customers buy and how they use it Where customers buy When customers buy How customers choose Why they prefer a product How they respond to marketing programs Will they buy it (again)?

Who buys and uses product / service

Initiator (identifies need for product / service) Influencer (provides info or preference) Decider (decides on spending the money) Purchaser (makes the purchase) User

Consumer segments

Geographic Demographic Psychographic Behavioral

Geographic Segments
Region of country: western, central or eastern City, town or village Climate: northern, southern

Demographic Segments
Age category Gender: male, female Family life cycle: single, married, young child, older child, empty nest, elderly Income category: lower, middle, upper Occupation: professional, managerial, etc. Education Religion

Psychographic Segments
Attitudes, Interests and Opinions Lifestyle Personality Perception

Behavioral
User status: user, non-user, first-time, regular Usage rate: none, medium, heavy Readiness stage: unaware, awareready Attitude toward product: positive, neutral, negative

Products of Customer Analysis


Detailed information about individual customers Quick-reference summary for each customer Set of generalized conclusions about customers and your relationship with them

Sources of Customer Information


User site visits Surveys (paper/email/phone) Focus groups and customer partnerships Internal information sources

Performing the Customer Analysis


Use teams to conduct research, surveys, and interviews Work off-line use full group meetings to review and consolidate findings High vs. low value for information Look for patterns and tendencies in the data Similarities and differences between customers Conclusions about your relationship, perceived value

Competitor Analysis
Who are they? (think broadly) What are their capabilities? How do we compare? What are our sources of competitive advantage (what do we do differently or better)? What are our strengths, weaknesses, opportunities, and threats? (SWOT analysis)

Products of Competitor Analysis


Data about individual competitors Strengths/weaknesses/opportunities/threats (SWOT) analysis Conclusions about your most significant competitors and your current sources of competitive advantage

Sources of Competitor Information


Networks Business partners Publicly available information Interviews Benchmark studies Customers

Performing the Competitor Analysis


Use teams to conduct research, interviews, etc. Work off-line use full group meetings to review and consolidate findings Pay special attention to not-in-kind competitors, especially others doing work themselves Do SWOT analysis to summarize your competitive position

SWOT Analysis Analyze Trends External forces that drive businesses: Economics Resources and environment International factors Social change Technology Politics

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