5.18: Product Lifecycle and Relevant Strategies
The Product Life Cycle (PLC) curve is a powerful tool marketers use to manage a product's life and make strategic decisions. It has four stages:
- Introduction: This is when the product is launched in the market after development and testing. Marketing strategies at this stage often involve awareness creation through publicity and advertising, and pricing either through cost-plus for niche products or penetration pricing to gain market share.
- Growth: The product gains acceptance, sales rise rapidly, and competition grows. Marketers focus on brand preference and increasing market share, which is achieved through product enhancements, competitive pricing, and extensive distribution.
- Maturity: Sales growth decreases as the product saturates the market. Marketing strategies here aim to maintain market share and extend product life; this could include product modifications, diversification, price reductions, and reminder advertisements.
- Decline: The product's sales fall. Depending on the situation, marketers may discontinue the product, sell it, or rejuvenate it by adding new features or exploring new markets.
Understanding the PLC helps businesses anticipate changes in the market, adapt their marketing strategies, and make informed decisions about product portfolio management. Marketers can gain competitive insights by comparing their product's PLC with competitors.
