Life Cycle Management

Life Cycle Marketing

What Is The Marketing Life Cycle?

Life Cycle Marketing

The marketing life cycle is interdependent with the product life cycle. The product life cycle moves through five distinct phases: development, introduction, growth, maturity and decline. As the product goes through its successive stages from birth to death, the marketing mix initiatives change in response to the impact of the product life cycle on marketing.The key marketing mix variables: product, distribution, promotion and price are optimized according to the marketing goals and objectives of the company at each product phase.

The first stage of the marketing life cycle is characterized by minimal spending to promote and distribute the product. This is because the primary emphasis of the company is on the development stage of the product life cycle. During this stage the company invests heavily in creating the product in preparation of its introduction to the market. If the company is very aggressive, you may see pre-release advertising to prep market awareness and to create a pent up demand for when the product releases.

Life Cycle Marketing

The second stage of the marketing life cycle occurs in response to the product introduction. At this stage the emphasis is on creating product and brand identification. The price is usually very high and supply is restricted. Production has not yet reached economy of scale and the product is only available through selected distribution channels. The primary marketing emphasis is on building brand awareness.

The growth stage of the marketing life cycle corresponds to growth stage of the product life cycle. During this phase the market for this product is expanding and companies advertise to build market share. Price competition begins to accelerate in response to the markets inherent profitability. Brand differentiation begins to emerge as competitors seek to win brand loyalty. The distribution channels are expanded to capture new customers. Marketing spend is ramped up during this stage to capitalize on the hunger of the market.

The maturity phase of the marketing life cycle represents the peak in product life cycle profitability and the fight for market share intensifies. Marketing initiatives focus on key differentiation and trying to entice consumers to switch brand preferences. Price wars can erupt as competitors fight for consumer loyalty. Incentives are given to distributors is an effort to keep shelf space and maintain maximum product exposure.

The decline stage of the marketing life cycle is characterized by the demise of the product with some companies seeking to exit the market. Product line consolidation takes place and unprofitable distribution channels are removed. Company wide costs cutting takes place and price competition intensifies in the marketplace. Marketing costs are reduced and promotion strategy seeks to highlight differentiation during this later stage of the product life cycle and market.

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