by Idhrees Mohamed - 150327

DEFINITION“ The stages through which the individual products develop over a period of time is known as product life cycle.”

THE FOUR STAGES OF PRODUCT LIFE CYCLE

o Introduction

o Growth

o Maturity

o Decline

Marketing Strategy used in Introduction stages:

Rapid Skimming

Slow skimming

Rapid Penetration

Slow penetration

Marketing Strategy used in growth stages:

Improved product quality and add new product features and styling Add new models and products of different sizes, colour, shapes, etc Enter new market segments Increase distribution coverage Shifts from product awareness to product preference advertising Lower prices to attract next layer of price sensitive buyers.

Marketing Strategy used in maturity stages:

1. Market Modification Converting non users Entering new market segments Win competitors customers Redefine target market

2. Product ModificationQuality Improved Adopting advance technology Product differentiation

Marketing Strategy used in Decline stages:

o Increase the given firms investment to dominate the market or strengthen its competitive position.

o Maintaining the given firms investment level until the uncertainties about the industry are resolved.

o Decrease the firms investment selectively, by dropping the unprofitable customers group.