Often, the popularity of the product or service during the growth stage also creates a new challenge--competition. Instead of concentrating exclusively on building your customer base, you are forced to implement new strategies, such as lowering prices or modifying the product's features, to keep your customers from wandering to a competitor.
· Maturity stage
Stage three of the product life cycle is the maturity stage. The sales and profits for products or services in this stage generally peak and then decrease as competition intensifies and the number of customers and potential customers diminishes.
Many companies decrease prices during the last half of a product's maturity stage to overcome the saturated market. This decision typically reduces the revenue for all companies in the market unless the lower prices generate enough spending to compensate for the lower per unit revenue.
· Decline stage
The final stage of the product life cycle is the decline stage. It is during this stage that companies notice a steep drop in sales. In many instances, new technology or a shift in social trends plays a major role in the decline of a product or service's appeal.
Although you do not necessarily need to eliminate a product or service immediately because of decreasing sales, you should alter your marketing strategy to maintain profit levels that satisfy your company's goals.
Keep in mind that not every product follows the same life cycle format. For example, one product may ride the popularity wave of similar offerings in the market and start in the growth stage, while another product might be so unpopular that it doesn't even make it out of the introductory stage.
To extend life cycle:
· Monitor each stage
· Anticipate sales, profits, trends
· Act early
By making key decisions at the right times, you can extend your product or service's life cycle. To do so effectively, it is important to monitor each stage, anticipate sales, profits, and trends, and act early to take advantage of changes in the market.
Increase customer usage
One method to extend your product or service's life cycle is to implement strategies to entice your customers to use your product more often. By increasing the number of times your current customers use your product or service, you can enhance your revenue without relying on new customers to enter the market.
Develop new uses
Another technique to extend your product's life cycle is to develop new uses for it. For example, at one time, baking soda was only used as an ingredient for cooking. However, once the product's growth peaked, manufacturers began promoting a new set of applications and benefits for baking soda, including its use as a laundry freshener and deodorizer.
· Modify product
· Change packaging
· Maturity stage
Stage three of the product life cycle is the maturity stage. The sales and profits for products or services in this stage generally peak and then decrease as competition intensifies and the number of customers and potential customers diminishes.
Many companies decrease prices during the last half of a product's maturity stage to overcome the saturated market. This decision typically reduces the revenue for all companies in the market unless the lower prices generate enough spending to compensate for the lower per unit revenue.
· Decline stage
The final stage of the product life cycle is the decline stage. It is during this stage that companies notice a steep drop in sales. In many instances, new technology or a shift in social trends plays a major role in the decline of a product or service's appeal.
Although you do not necessarily need to eliminate a product or service immediately because of decreasing sales, you should alter your marketing strategy to maintain profit levels that satisfy your company's goals.
Keep in mind that not every product follows the same life cycle format. For example, one product may ride the popularity wave of similar offerings in the market and start in the growth stage, while another product might be so unpopular that it doesn't even make it out of the introductory stage.
To extend life cycle:
· Monitor each stage
· Anticipate sales, profits, trends
· Act early
By making key decisions at the right times, you can extend your product or service's life cycle. To do so effectively, it is important to monitor each stage, anticipate sales, profits, and trends, and act early to take advantage of changes in the market.
Increase customer usage
One method to extend your product or service's life cycle is to implement strategies to entice your customers to use your product more often. By increasing the number of times your current customers use your product or service, you can enhance your revenue without relying on new customers to enter the market.
Develop new uses
Another technique to extend your product's life cycle is to develop new uses for it. For example, at one time, baking soda was only used as an ingredient for cooking. However, once the product's growth peaked, manufacturers began promoting a new set of applications and benefits for baking soda, including its use as a laundry freshener and deodorizer.
· Modify product
· Change packaging