Key marketing challenges in the introduction phaseOne of the key marketing challenges in the introduction phase of the product life cycle (PLC) is to clearly communicate the advantages and benefits of the new product offering, relative to existing products in the marketplace. This requires a significant and targeted communications program – typically targeting consumer innovators.As […]

Well-managed Product PortfoliosHaving survived the significant competitive battle of the growth stage, firms are looking for stability and ongoing profitability and to leverage their “cash cows”. It is also likely, in most well-managed firms, that they have now/since entered other markets and have new products in the introduction phase and growth phases as well. This

In the growth stage of the PLC there is a limited degree of customer loyalty. This is because most customers are “first-time consumers” and have no direct experience purchasing the product.This means that in a growth market, it is common to see the competitors try to obtain as much market share as possible during the

Growth phase follows the introduction phaseThe growth phase follows a successful introduction stage. There is no guarantee that a new product will be successful – therefore, not all new products will have a growth phase.However, provided that the firm has been successful in reaching innovators in the market, and the product has some advantages over

Product reinvention to trigger a new growth phaseIn a mature market, potentially entering the decline stage of the product life cycle, larger firms may be in a position to try and rethink the overall positioning of a product in order to try and broaden its market or to create new usage or opportunities for silence.In

Following the maturity stage of the PLC, many products at some point will enter the decline stage. The decline stage is a significant reduction in sales volumes. Typically this occurs for two main reasons:There is a new product category in the market that provides a better solution and has provided enough incentive for consumers to

One of the key challenges for the firm during the introduction phase, given the important role of innovators, is the limited level of sales and likely negative profitability. This occurs because only a small proportion of consumers – the innovators – will trial/purchasing new product in its early stages. Because the firm has its normal

The introduction phase starts with innovatorsMarketers of new products seeking to gain traction for their offering are reliant upon a category of consumers that are classified as “innovators”. Innovators are consumers that are far less influenced by word-of-mouth for a particular product category. Typically innovators have a high level of interest in the product category

New-to-the-world products onlyWhen we look at the product life cycle, we are generally considering products that are new to the marketplace. That is, these are products that are not normally purchased by consumers. We are not looking at products that are new to the firm, but are new to the market.Therefore, in the introduction phase,