Product strategy

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Product StrategyThroughout 5 Life Cycle Stages : 

Product StrategyThroughout 5 Life Cycle Stages Development Stage Introduction Stage Growth Stage Maturity Stage Decline Stage

5 Stages of the Product Life Cycle : 

5 Stages of the Product Life Cycle

Development Stage : 

No sales revenue during this stage Components of the product concept: An understanding of desired uses and benefits A description of the product The potential for creating a complete product line An analysis of the feasibility of the product concept Customer needs should be discerned before developing marketing strategy Development Stage

Introduction Stage : 

Begins when development is complete Ends when customers widely accept the product Marketing strategy goals during this stage: Attract customers by raising awareness and interest Induce customers to try and buy Engage in customer education activities Strengthen or expand channel and supply relationships Set pricing objectives Introduction Stage

Growth Stage (1 of 2) : 

Be ready for sustained sales increases Rapid increase in profitability early in the growth stage that decreases at the end of this stage Length depends on nature of product and competitive reactions Two strategies: (1) Establish a strong, defensible marketing position (2) Achieve financial objectives Growth Stage (1 of 2)

Growth Stage (2 of 2) : 

Marketing strategy goals in this stage: Leverage the product’s perceived differential advantages Establish a clear product and brand identity Create unique positioning Maintain control over product quality Maintain or enhance the product’s profitability to partners Find the ideal balance between price and demand Keep an eye focused on the competition Growth Stage (2 of 2)

Maturity Stage (1 of 2) : 

Few, if any, new firms will enter the market Still an opportunity for new product features and variations Typically the longest stage in the product life cycle Maturity Stage (1 of 2)

Maturity Stage (2 of 2) : 

Four general goals in this stage: (1) Generate Cash Flow (2) Hold Market Share (3) Steal Market Share (4) Increase Share of Customers Four options to achieve these goals: (1) Develop a new product image (2) Find and attract new users to the product (3) Discover new applications for the product (4) Apply new technology to the product Maturity Stage (2 of 2)

Decline Stage : 

Two options: (1) Attempt to postpone the decline (2) Accept its inevitability Harvesting Divesting Factors to be considered during this stage: Market segment potential The market position of the product The firm’s price and cost structure The rate of market deterioration Decline Stage

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