产品生命周期及营销策略

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 continuously produced and sold until it is instead of by other. How long the period is mainly depends on 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 PC’s life cycle is 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 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. QUATITY Cost Sale Profit Introducing  Developing  Maturating  Declining         TIME Stage        Stage      Stage      Stage 1. The characteristic 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 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 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 influence the distribution of the products, manufactures can mode high quality and famous brand images 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 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 it 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 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 price; 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 and 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 very 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 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 more 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 strategy The major characteristic of developing: products have modeled and a great number of the products 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 below five parts: