1、The Life Cycle of the Products and the Market StrategyLife 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 continuously produced and sold until it is instead of by other. How long the period is mainly depends on
2、the new products demand in market .If the demand is too large to attain in a certain time, life cycle of the product will be longer then average level .On the contrary, it will be shorter. There is a appropriate example to show that, nowadays, the demand of PC is up increasingly, so PCs life cycle i
3、s longer period in market. Generally speaking, life cycle of products is divided into four stages, according to the different demand in the various stages in the whole cycle life. They four are Introducing stage, Developing Stage, Maturating Stage, Declining Stage.Nevertheless, Marketing strategies
4、should be made according the different situation of the four stages, because the four stages have the different characteristics. The following chart will show this with sale, cost, profit and time. QUATITYCostSale ProfitIntroducing Developing Maturating Declining TIMEStage Stage Stage Stage1. The ch
5、aracteristic of introducing stage and marketing strategy.The major characters of the stage: products technology and function is not perfect; production is small and product cost is high; the consumers are short of understanding for products and the promotion fee is too high; profit is very small or
6、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 consumers as soon as possible and turn to growing stage. There are four marketing strategies for it:First: the strategy of sales prom
7、otion 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 influence the distribution of the products, manufactures can mode high quality and famous brand images of the products because of paying large number
8、of the advertisement expenditure. In this way, consumers begin to trust the product in mind and know it is high-quality excellent price, thus, it decelerates the disadvantage influence in high price. If we know that the consumers need the new product with the new heart slices and would like to buy i
9、t in high price we should adopt the market strategy. The business enterprise faces the latent competition of threat; need set up famous brand etc as early as possible.Second: the low sales promotion in costliness strategy. It means that we sale the new products in high price and low sales promotion
10、expenses. Through combining with both, in order to obtain 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 flexibility is smaller; the consumers would like to buy it in high pric
11、e; the latent threat competition 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 kind of strategy can make product entered the market as soon as possible an
12、d make the business enterprise acquire the biggest rate of market occupancy. The market condition which we adopt the strategy is: the market capacity is very big; the flexibility of requiring price is bigger, the consumers are not still very familiar with to this kind of product, however, they are v
13、ery sensitive with the price; the latent competition 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. The low price purpose is to make consumer accepted the new product quickly, he low
14、price purpose is to make consumer accepted the new product quickly, the low sales promotion expenses can make the business enterprise acquire more profits and improve the competition ability. The market condition which we adopt the strategy is: The market capacity is very bigger; the consumers are m
15、ore familiar with to the products and they are very sensitive with the price; there are a good many of latent competitors in the market etc.2. The characteristic of developing stage and marketing strategyThe major characteristic of developing: products have modeled and a great number of the products
16、 have been produced in lower cost. Consumers 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 competition become cruelly. Actually, in this stage, the enterprise may adopt these strategies from belo
17、w five parts:First: to raise the quality of products.Second: to carve out the new market.Third: make up the sign products.Fourth: to strengthen effect and efficiency of the sell channel.Fifth: to select the proper time to reduce the price not only we can attract more consumers, but also strike other
18、 competitors.3. The characteristic of maturating stage and marketing strategy In this stage, sale still increases, but it is closed to saturation. And increasing rate begins to decrease. The profit reaches the top and starts to drop, and the growth rate has tendency of decrease; some kinds of same p
19、roducts and the substitute products enter market. Because of the profit, many corps attends to this field and produces this product. So, the competition is very sharp in the field.During the stage of the mature period, the situation is very complex. It was from the practical situation of the firms a
20、nd the products that we must analyze it. For the firms that the actual strength are not strong and products do not have comparative advantage, we can use the type of the defense strategy, It means that we need use a low price, a good quality service and so on to keep present market as soon as possib
21、le.In case of that the products are lack of the ability to competition. The company should give up these products and withdraw the field. It means eliminating the products in advance and concentrates on the development and invention of new products. In order to strong anew. If the actual strength of
22、 the firm is very strong, products still have enough competitive capacity; we should use the type of attack strategies. The type of attack strategies often develops from below the three parts: First is the strategy of reforming product. It means that we reform capacity, quality and design and color
23、for the product, in order to keeping in touch with old consumer., attracting new customer. As a result the mature stage of the product has been protracted, even it will break the completion of the selling stopped and it will promote the selling curve raise again.Second is the market exploitation str
24、ategy. It point that we should look for the new user or research the new fractional market for the product enter the market, which it has never used. Many products only sell in the cities. Country market has not been exploited. It will avoid the market competition effectively if our products enter t
25、he country market. In this way, the manufacturer can get more profits. For instance, Legend Company develops the country market activity. It set up institution in some villages and towns and sells some kinds of computer, which is in the mature age. As a result, it gets success. We know another examp
26、le, 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 its 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.Th
27、ird is the strategy of market recombine. It means that we should use many factors, such as the price, distribution and sales promotion and so on to stimulate the consumer to buy. For the sake of this way, we should use several instruments. In this method, we can irritate consumer to buy the product.
28、 For example, we can reduce the price, establish many kinds of sale channel to increase sale chance, use advertisements to propagandize the products, make use of award sale and so on. These methods can increase the opportunity of the selling products; especially in the market competition is very int
29、ense. The product will occupy the abundant market if manufacturer make use of these methods enough.4. The characteristic of declining stage and marketing strategyThe main feature of the mature stage is that: the substitute enter market is very much, consumers treat the past products that they used t
30、o use loyal no longer: The sale of the products increase in a range of high quantities and the price. Decrease the profit decrease. The competitors of it have to take away market finally. In the situation, the strategy of the firms often include:First: the contractive-strategy. It means decreasing t
31、he market range. Firm and market the resources concentrates on using the advantage of the son market the most efficient path of market and the easiest type of the sale. In order to get more and more profits from the advantage of the factors.Second: the persisting-strategy. Because many competitors g
32、ive up the products and the fields. Have ever many consumers still use this product in this field. If we 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
33、we still got the profit that we hope to get. Then we give up the product in this field when we think it is appropriate.Third: the withdrawing-strategy. When we cant get appropriate profit or cant get profit. We should give up the product and concentrate to invent the new product. Otherwise, it does not only affect our profit and occupy our limited resource, but also influence the fame of our company. Many consumes will think our company is a bad one. Then it is harmful for our other products attend the new field.
