PRINCIPLES OF MARKETING

Principles of Marketing



**Principles of Marketing**

Answer 1:

Life cycle management of a product

The products have life cycles that can be divided into four stages: introduction, growth, maturity and decline (aging). The marketing success of a company is profoundly affected by their ability to understand or manage the life cycle of their products. The cycle can be illustrated by curves in sales volume and profits, as shown in the chart below. The shape of these curves varies from product to product. It is very important that management recognizes where in the cycle of life your product is at the time. The competitive environment and resulting marketing strategies usually differ depending on the stage. During the first stage of the life cycle of a product, it is launching a large-scale production and a comprehensive marketing program. Has gone through the initial stages of the evaluation of ideas, pilot models and market testing. The entire product may be new, like a machine that electronically cleans clothes without using water. It may be that the commodity is well known but has a new feature or option that is in the introductory phase, for example, a gas turbine engine in a car. A large percentage of product characteristics in this period. The operations of the introductory period are characterized by high costs, high turnover, net losses and a limited distribution. In many ways, the introduction stage is the most risky and expensive. However, in the case of really new products, there is little direct competition. The promotional program can be designed to stimulate demand for primary rather than secondary. That is, the product type is highlighted and not the brand of the seller.

Growth

The competitors enter the market in large quantities if the prospect of utility is very attractive. Companies opt for a promotional strategy of "buy my product" rather than by "try this product." A growing number of distributors, introducing economies of scale and prices fall a bit. Usually the profits begin to decline near the end of this stage of growth.

Maturity

During the first part of this period, sales are still growing but at a diminishing rate. Sales tend to stabilize, but decrease the profits of manufacturers and retailers. Marginal products are forced to exit the market. Price competition becomes increasingly fierce. The manufacturer assumes a larger share of the total promotional effort in the fight to keep retailers and shelf space in their establishments. New models are introduced as producers expand their lines and take on great importance in sales in used items are accepted as payment.

Decline and Possible Abandonment

For almost all products, the obsolescence inexorably starts when the new products begin their life cycle and replace the previous. Cost control is becoming increasingly important as demand declines. There is less advertising and several competitors leave the market. It often depends on the capacity and ability of managers that have to leave the product or that seller survivors continue selling at a profit.

Duration of the life cycle of a product

The ...