Marketing strategies for introduction and growth stage

Marketing strategies for introduction and growth stage

Content……• What is marketing strategy ?• What is PLC ?• Introduction stage of the PLC• Introductory marketing strategies• Growth stage of the PLC• Marketing strategies for growth stage

What is marketing strategies ?Marketing strategies is a long-

term course of action designed to optimeze allocation of the scarce resources at the disposal of a firm in delivering superior customer experiences and promote the interests of other stakeholders.

What is plcProduct life cycle (PLC) is the

cycle through which every product goes through from introduction to withdrawal or eventual demise. 

Product Life Cycle

Introduction stage of the PLC

• First stage in a product's life cycle. This is the point of product launch, market entry, and user-trial by the innovators.

• Example :

3D Televisions : 3D may have been around for a few decades, but only after considerable investment from broadcasters and technology companies are 3D TVs available for the home, providing a good example of a product that is in the introduction stage.

Characteristics of introduction stage of plcSales – lowCost – high cost per customerProfits – negativeMarketing objectives – create marketing

awareness and trialProduct – offers a basic productPrice – use cost plus formulaDistribution – build selection distributionPromotion – heavy to entice product trial

Introductory marketing strategies

Rapid –skimming strategy Slow- skimming strategy

Rapid-penetration strategy

Slow-pentration strategy

promotion

price

high

high

low

low

Growth stage of the plcIn the growth stage, the firm

seeks to build brand preference and increase market share.

Example :Tablet PCs : there are a growing number of tablet PCs for consumers to choose from, as this product passes through the growth stage of the cycle and more competitors start to come into a market that really developed after the launch of Apple’s ipad. Anther example is NANO car.

Characteristics of growth stage of plcSales- rapidly risingCost- average cost per customerProfits- risingMarketing objectives- maximize

marketing shareProduct – offer extension,service,warrantyPrice- penetration strategyDistribution- build intensive distributionPromotion- reduce to take advantage of

demand

Marketing strategies for growth stage

• Improves product quality and adds new features and improved styling.

• Add new models and flanker products.• It enters new market segments.• It increases its distribution coverage enters new

distribution channels.• It shift from product –awareness advertising to product-

preference advertising• It lowers price to attract the next layer of price –

sensitive buyers.

CONCLUSION

We should identify what is the stage we act

Recognize the issues what we face.

What kind of strategies we should follow

Implement the effective strategies.

Evaluate the success.