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Topic 8.1 Product life cycle - Maturity stage
A new product progresses through a sequence of stages from introduction to growth, maturity, and decline. This sequence is known as the product life cycle and is associated with changes in the marketing situation, thus impacting the marketing strategy and the marketing mix.
The product revenue and profits can be plotted as a function of the life-cycle stages as shown in the graph below:. In the introduction stage, the firm seeks to build product awareness and develop a market for the product.
The impact on the marketing mix is as follows:. Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained. Pricing may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. Promotion is aimed at innovators and early adopters. Marketing communications seeks to build product awareness and to educate potential consumers about the product.
At maturity, the strong growth in sales diminishes.
Do looks matter to you?The Product Life Cycle. Every product goes through the various life cycle phases of introduction, growth, maturity and decline. The third stage in the Product Life Cycle is the maturity stage. If your product completes the Introduction and Growth stages then it is likely to..
Product Life Cycle (BBA, MBA, maythaovo.info, maythaovo.info) Lecture by Ms. Surbhi Mathur.
After having been launched, a product should enjoy a prolonged and happy lifeblood. In order to cover all the effort and imperil that went into launching a upshot, the company wants to earn a decent profit. The company must be aware that the product will not sell forever: On the eve of discussing the yield life cycle stages, it is brainy to explain what the product individual cycle actually is.
Not all concoctions follow all five stages of the product life sequence.
Lifeblood cycle models are not legitimate a phenomenon of the existence sciences. Industries experience a nearly the same cycle of life. Just as a person is born, grows, matures, and eventually experiences worsen and ultimately death, so too do industries and product lines.
The stages are the identical for all industries, yet at times industry will experience these stages differently, they will last longer for some and pass pronto for others. Even within the same industry, various firms may be at different life course stages. A firms strategic down is likely to be greatly influenced by the stage in the life cycle at which the firm finds itself.
Some companies or even industries discover new uses for declining commodities, thus extending their life round. The growth of an industry's sales over time is acquainted with to chart the life course. The distinct stages of an industry life cycle are:
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