Product life cycle
How to make a product over time
Introduction
Growth
Maturity
Decline
Introduction (Launch)
The product should have the most attractive elements of the core, formal, and augmented aspects of the product for the target group. This stage will need:
-Competitive pricing (more later this semester)
-Appropriate availability or delivery (Place)
-Efforts from the marketing side to raise awareness (Promotion)
Growth
The product now has an expectation to appeal to a wider range of customers.
Differentiation from competitors is a key component of growth strategy.
How to appeal to new customers?
-Updated pricing and place elements for new customer targets
-A focus on differentiation
Profitability should be seen here by the organisation
Maturity
The product is stable and performing well, with its own identified share of the market.
Marketing efforts here are around maintenance.
However, if a new option can be developed and introduced, the product’s life cycle may be extending. This would result in increased marketing efforts to raise awareness around the new aspect of the product
Decline
The majority of products will experience this sooner or later.
Must be aware of changing customer needs
A complete redesign could be appropriate here to try and give the product new life.
New product development could also lead to the downfall of an existing product
New product development
Product replacements or upgrades- incremental changes
Additions- to existing line ( Coca Cola/ Coke 0)
New product lines- extension of expertise (Dyson) 20% of total new products
New to the world- disruptors (smart phone) 10% of total new products.
challenges and links to strategy
Developing new o products is time consuming and can be quite costly.
Most organisations will have research and development departments to oversee this process and to put forth proposals for new ideas.
Not every idea makes it to the market.
Ultimately, organisations are trying to answer 3 questions:
What customers needs are trying to be met?
Does the organisation have the ability to produce the products?
Is there an identifiable market?