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1、精品文檔你我共享 The Life Cycle of the Products and the Market Strategy Life cycle of products is a period of time, which is from starting producing and selling a new product to end, in which the new products are con ti nu ously produced and sold un til it is in stead of by other. How long the period is mai

2、nly depe nds on the new products dema nd in marketf the dema nd is too large to atta in in a certa in time, life cycle of the product will be Ion ger the n average level .On the contrary, it will be shorter. There is a appropriate example to show that, nowadays, the dema nd of PC is up in creas in g

3、ly, so PC life cycle is Ion ger period in market. Gen erally speak in g, life cycle of products is divided into four stages, accord ing to the differe nt dema nd in the various stages in the whole cycle life. They four are In troduci ng stage, Develop ing Stage, Maturati ng Stage, Decli ning Stage.

4、Nevertheless, Marketi ng strategies should be made accord ing the differe nt situati on of the four stages, because the four stages have the differe nt characteristics. The follow ing chart will show this with sale, cost, profit and time. QUATITY In troduci ng Develop ing Maturat ing Decli ningTIME

5、Stage Stage Stage Stage 1. The characteristic of in troduci ng stage and market ing strategy. The major characters of the stage: products tech no logy and function is not perfect; product ion is small and product cost is high; the con sumers are short of un dersta nding for products and the promoti

6、on fee is too high; profit is very small or no profit; the competitors are less etc. According to these characters, the core of marketing is improve the life of the new products in order to make it accept by the con sumers as soon as possible and turn to grow ing stage. There are four marketi ng str

7、ategies for it: First: the strategy of sales promotion in high price. It means that manufactures detrude the new products in order to occupy the market as soon as possible. High price strategy could in flue nee the distributio n of the products, manu factures can mode high quality and famous brand i

8、mages of the products because of paying large number of the advertisement expenditure. In this way, consumers begin to trust the product in mind and know it is high-quality excelle nt price, thus, it decelerates the disadva ntage in flue nce in high price. If we know that the con sumers n eed the ne

9、w product with the new heart slices and would like to buy it in high price we should adopt the market strategy. The bus in ess en terprise faces the late nt competiti on of threat; n eed set up famous brand etc as early as possible. Second: the low sales promoti on in costl in ess strategy. It means

10、 that we sale the new products in high price and low sales promotion expenses. Through combining with both, in order to obta in the biggest profits from the market. The market term that we adopt the strategy is: the market capacity is limited; the product is the famous and new; the demanding price f

11、lexibility is smaller; the con sumers would like to buy it in high price; the late nt threat competiti on is not heavy etc. Third: the strategy of high sales promotion in low price. It also says that we announce the new products strongly in the high sale promotion expenses with the low price. This k

12、ind of strategy can make product en tered the market as soon as possible and make the bus in ess en terprise acquire the biggest rate of market occupa ncy. The market con diti on which we adopt the strategy is: the market capacity is very big; the flexibility of requiring price is bigger, the consum

13、ers are not still very familiar with to this kind of product, however, they are very sen sitive with the price; the late nt competiti on is intense etc. Fourth: the strategy of the low sakes promotion in low price. It means that we sell the new products in low price and high sales promotion expenses

14、. The low price purpose is to make con sumer accepted the new product quickly, he low price purpose is to make con sumer accepted the new product quickly, the low sales promotio n expe nses can make the bus in ess enterprise acquire more profits and improve the competition ability. The market condit

15、ion which we adopt the strategy is: The market capacity is very bigger; the con sumers are more familiar with to the products and they are very sensitive with the price; there are a good many of late nt competitors in the market etc. 2. The characteristic of develop ing stage and market ing strategy

16、 The major characteristic of developing: products have modeled and a great number of the products have bee n produced in lower cost. Con sumers are so familiar with the products that the raise of sales value and the profit have raise quickly. Many competitors enter the field in succession. The compe

17、tition become cruelly. Actually, in this stage, the enterprise may adopt these strategies from below five parts: First: to raise the quality of products. Second: to carve out the new market. Third: make up the sig n products. Fourth: to stre ngthe n effect and efficie ncy of the sell cha nn el. Fift

18、h: to select the proper time to reduce the price not only we can attract more con sumers, but also strike other competitors. 3. The characteristic of maturat ing stage and market ing strategy In this stage, sale still in creases, but it is closed to saturati on. And in creas ing rate begi ns to decr

19、ease. The profit reaches the top and starts to drop, and the growth rate has tendency of decrease; some kinds of same products and the substitute products en ter market.Because of the profit, many corps attends to this field and produces this product. So, the competition is very sharp in the field.

20、During the stage of the mature period, the situation is very complex. It was from the practical situation of the firms and the products that we must analyze it. For the firms that the actual stre ngth are not stro ng and products do not have comparative adva ntage, we can use the type of the defense

21、 strategy, It means that we need use a low price, a good quality service and so on to keep prese nt market as soon as possible. In case of that the products are lack of the ability to competiti on. The compa ny should give up these products and withdraw the field. It means elim in at ing the product

22、s in adva nee and concen trates on the developme nt and inven ti on of new products. In order to strong an ew. If the actual stre ngth of the firm is very strong, products still have eno ugh competitive capacity; we should use the type of attack strategies. The type of attack strategies often develo

23、ps from below the three parts: First is the strategy of reforming product. It means that we reform capacity, quality and design and color for the product, in order to keeping in touch with old consumer., attract ing new customer. As a result the mature stage of the product has bee n protracted, even

24、 it will break the completion of the selling stopped and it will promote the selling curve raise aga in. Second is the market exploitati on strategy. It point that we should look for the new user or research the new fractional market for the product en ter the market, which it has n ever used. Many

25、products only sell in the cities. Country market has not bee n exploited. It will avoid the market competiti on effectively if our products en ter the country market. In this way, the manu facturer can get more profits. For in sta nee, Lege nd Compa ny develops the country market activity. It set up

26、 in stituti on in some villages and tow ns and sells some kinds of computer, which is in the mature age. As a result, it gets success. We know another example, the US firm the Johnson corp. When its product is saturation in the old flied. Although its product is fixed baby, the adult begin to use it

27、s product in this method. In all we use this strategy in order to find out the new field in which people dont use it but this product is still fixed them. Third is the strategy of market recomb in e. It mea ns that we should use many factors, such as the price, distribution and sales promotion and s

28、o on to stimulate the consumer to buy. For the sake of this way, we should use several in strume nts. In this method, we can irritate consumer to buy the product. For example, we can reduce the price, establish many kinds of sale cha nnel to in crease sale cha nee, use advertiseme nts to propaga ndi

29、ze the products, make use of award sale and so on. These methods can in crease the opport un ity of the selli ng products; especially in the market competiti on is very inten se. The product will occupy the abundant market if manu facturer make use of these methods eno ugh. 4. The characteristic of

30、decli ning stage and marketi ng strategy The main feature of the mature stage is that: the substitute en ter market is very much, con sumers treat the past products that they used to use loyal no Ion ger: The sale of the products in crease in a range of high qua ntities and the price. Decrease the p

31、rofit decrease. The competitors of it have to take away market fin ally. In the situati on, the strategy of the firms ofte n in clude: First: the con tractive-strategy. It mea ns decreas ing the market ran ge. Firm and market the resources concentrates on using the advantage of the son market the mo

32、st efficient path of market and the easiest type of the sale. In order to get more and more profits from the adva ntage of the factors. Second: the persist in g-strategy. Because many competitors give up the products and the fields. Have ever many consumers still use this product in this field. If w

33、e reduce the price, many consumers still like to use our products. It means that we still possess the market in this field. We use the past marketing strategy and keep the sale in the level, which we still got the profit that we hope to get. Then we give up the product in this field when we thi nk it is appropriate. Third: the withdraw in g-strategy. When we can tet appropriate profit or can get p

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