Product price us e cos t plus ba s is to s e t us dis

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Unformatted text preview: Strategies: Introduction Stage • • • • Product – O ffe r a ba s ic product Price – Us e cos t-plus ba s is to s e t Us Dis tribution – Build s e le ctive dis tribution Adve rtis ing – Build a wa re ne s s a mong e a rly a dopte rs a nd de a le rs /re s e lle rs • S ale s Prom otion – He a vy e xpe nditure s to cre a te tria l to 10 - 19 Product Life-Cycle Strategies P LC S tag e s PLC • P roduct Product de ve lopm e nt de • Introduction • Growth • Maturity • De cline • Ra pidly ris ing s a le s • Ave ra ge cos t pe r Ave cus tome r c us • Ris ing profits • E a rly a dopte rs a re Ea ta rge te d ta • Growing compe tition 10 - 20 Marketing Strategies: Growth Stage • Product – O ffe r product e xte ns ions , s e rvice , wa rra nty wa • Price – P e ne tra tion pricing • Dis tribution – Build inte ns ive dis tribution • Adve rtis ing – Build a wa re ne s s a nd inte re s t in the ma s s ma rke t in • S ale s Prom otion – R e duce e xpe nditure s to ta ke a dva nta ge of cons ume r de ma nd ta 10 - 21 Product Life-Cycle Strategies P LC S tag e s PLC • P roduct Product de ve lopm e nt de • Introduction • Growth • Maturity • De cline • S a le s pe a k • Low cos t pe r Low cus tome r c us • High profits • Middle ma jority a re Middle ta rge te d ta • C ompe tition be gins Compe to de cline to 10 - 22 Marketing Strategies: Maturity Stage • Product – Dive rs ify bra nd a nd mode ls • Price – S e t to ma tch or be a t compe tition • Dis tribution – Build more inte ns ive dis tribution d is • Adve rtis ing – S tre s s bra nd diffe re nce s a nd be ne fits be • S ale s Prom otion – Incre a s e to e ncoura ge bra nd s witching b ra 10 - 23 Product Life-Cycle Strategies P LC S tag e s PLC • P roduct Product de ve lopm e nt de • Introduction • Growth • Maturity • De cline • De clining s a le s • Low cos t pe r Low cus tome r c us • De clining profits • La gga rds a re La ta rge te d ta • De clining compe tition 10 - 24 Marketing Strategies: Decline Stage • Product – P ha s e out we a k ite ms • Price – Cut price C ut • Dis tribution – Us e s e le ctive dis tribution: pha s e out unprofita ble outle ts p ha • Adve rtis ing – R e duce to le ve l ne e de d to re ta in ha rd-core loya lis ts re • S ale s Prom otion – R e duce to minima l le ve l 10 - 25...
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