In week three Team C learning topics included a market strategy that focused on product and price. In reviewing product and price it became clear that a relationship exists between the two and they impact market strategies. Product life is a factor that can also impact market strategy. The reason for this is technology changes. Because technology changes so often product life cycles are getting shorter. Team C realizes that it may be best to be the first to develop a new product with a fair price. Team C discussed the relationships and the impacts below, while explaining how to identify the appropriate price strategy.
Analyze the impact of the product life cycle on marketing
The product life has four stages: market introduction, market growth, market maturity, and sales decline. These four stages impacts marketing because the marketing mix is slightly adjusted with each change in the product life stage. During the market introduction stage, the company should adjust its marketing mix to focus on making consumers aware of its new product. In the market growth stage, a company must focus on marketing its products better than the competitors that attempt to piggy back on the new product by entering the market with their own versions. During the market maturity stage, a company spends more money for promoting its products because competition is greater during this phase. There is a downward pressure on prices due to heavy competition during this stage. Finally, in the sales decline stage, a company adjusts its marketing mix to focus on differentiating its products from the competitors. As new products are being introduced, sales decline for the existing products so pricing becomes a main focus.