Marketers often involve actual customers in product testing Test Marketing If

Marketers often involve actual customers in product

This preview shows page 8 - 11 out of 18 pages.

Marketers often involve actual customers in product testing Test Marketing If product passes concept & product tests, next step is test marketing oThe stage at which the product and marketing program are introduced into realistic market settings oTest marketing gives marketer experience w/marketing the product before going to great expense of full introductionCommercializationFinal step in new-product development process is commercializationoFull-scale introduction of the product into the market
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The Product Life Cycle Marketing managers must accept that each product launched in market willhave life cycleProduct Life Cycle (PLC): the course that a product’s sales & profits take overits lifetimeThe typical product life cycle moves through five stages: product development, introduction, growth, maturity, & decline oEx: Coca Cola & Tide may stay in mature stage indefinitely, & never decline oMany products are introduced to the market and then fail- can be viewed as having skipped their growth and maturity stages & gone directly to decline Stages of the Product Life CycleIntroduction Stage Introduction stage starts when the new product is first launched Many new products fail during intro stage Some products take off quickly aka Apple’s iPod oHDTV lingered for yearsGrowth Stage If new product satisfies market, it will enter growth stageoProduct life-cycle stage in which a product’s sales start climbing quickly Early adopters will continue to buyLater buyers will start following early adopters, especially if they hear favourable word of mouthCompetitors will release their versions of new product First marketer will need to make improvements or lower prices in order to competeMaturity Stage
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At some point, product’s sales growth will slow down and enter maturity stageoThe product life-cycle stage in which sales growth slows or levels off Maturity stage normally lasts longer than previous stages, & poses strong challenges to marketing management Main marketing goal when product hits mature stage is to prevent it from declining Marketers who handle mature products must be constantly developing strategies & managing marketing programs to keep product profitableoOne way to do this is by modifying the marketoOr, trying to increase consumption by finding new market segments oAnother way is by modifying the productChanging characteristics such as quality, features, style, or packaging to attract new users & inspire more usage oOr, marketers can try modifying the marketing mix Improving sales by changing one or more marketing mix elements, such as improving services, adjusting prices, or running sales promotionDecline Stage Many mature products that continue to be useful, such as brands of laundrydetergent & shampoo, can stay in maturity stage indefinitely Other products such as computers, television, & telephones will eventually decline, die, & be replaced by different products
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