Apr 162017
 

As it is possible to use the product life cycle as a portfolio analysis tool, which allows us to consider whether we have adequately provided for the future profitability for the firm/brand, it is an obvious that there is a strong connection between the product life cycle and the firm’s Read full article…

Apr 162017
 

Marketing mix strategies during the introduction stage Offer a basic product with limited choices, as this also helps test the overall market demand/interest, while keeping costs and logistic challenges relatively low Use marketing communications (IMC/promotion) that are effective in generating initial awareness and reaching innovators. Often specialist websites/blogs and magazines Read full article…

Apr 162017
 

While the product life cycle model is a very helpful tool for helping to understand current and potential market conditions, in order to develop appropriate marketing and competitive strategies, there are some limitations and concerns with the usage of the PLC. Firstly, not all new products will be successful. That Read full article…

Apr 162017
 

In order to assess where a product is on the PLC curve, a multiple of factors can be considered, including: Sales to date, graph accordingly, to visually demonstrate any turning points from introduction to growth, and so on, The number of competitors entering/leaving the marketplace (competitors enter in growth and Read full article…

Apr 162017
 

This website has discussed consumer innovators numerous times, due to their importance in generating product adoption and kick-starting the introduction phase of the product life cycle. While innovators are the initial type of consumer, there are other consumer mindsets that are typically discussed in marketing textbooks. The standard consumer adoption Read full article…

Apr 162017
 

Underpinning the pattern of sales in the product life cycle is how consumers adopt new products. Not all new products are successful, indeed, most new products will fail. For example, even Apple has its fair share of failed products. As we know, the product life cycle moves through four distinct Read full article…

Apr 162017
 
The PLC as a Product Portfolio Tool

The PLC model can be utilized for portfolio analysis Do we have an appropriate balance of existing products in a mature market, and are we investing in future new product opportunities by entering products into introduction and growth stage markets? Again, this is conceptually similar to the underlying principle of Read full article…

Apr 162017
 

Key marketing challenges in the introduction phase One of the key marketing challenges in the introduction phase of the product life cycle (PLC) is to clearly communicate the advantages and benefits of the new product offering, relative to existing products in the marketplace. This requires a significant and targeted communications Read full article…

Apr 162017
 

Well-managed Product Portfolios Having survived the significant competitive battle of the growth stage, firms are looking for stability and ongoing profitability and to leverage their “cash cows”. It is also likely, in most well-managed firms, that they have now/since entered other markets and have new products in the introduction phase Read full article…

Apr 162017
 

Growth phase follows the introduction phase The growth phase follows a successful introduction stage. There is no guarantee that a new product will be successful – therefore, not all new products will have a growth phase. However, provided that the firm has been successful in reaching innovators in the market, Read full article…

Apr 162017
 
Extending the Product Life Cycle

Product reinvention to trigger a new growth phase In a mature market, potentially entering the decline stage of the product life cycle, larger firms may be in a position to try and rethink the overall positioning of a product in order to try and broaden its market or to create Read full article…

Apr 162017
 

Following the maturity stage of the PLC, many products at some point will enter the decline stage. The decline stage is a significant reduction in sales volumes. Typically this occurs for two main reasons: There is a new product category in the market that provides a better solution and has Read full article…

Apr 162017
 

One of the key challenges for the firm during the introduction phase, given the important role of innovators, is the limited level of sales and likely negative profitability. This occurs because only a small proportion of consumers – the innovators – will trial/purchasing new product in its early stages. Because Read full article…