Question

Explain how marketers adjust their promotion mix for the different stages of the product life cycle. List each stage and the marketers’ promotional mix.

Answer 1

Development stage- In this stage the product is still an idea and there is no finished product to market. So, the marketing mix at this stage would be to bring customer awareness about the product.

Introduction stage - At this stage the product hits the market. Since its a new product, the customers are not aware and sales may be low. Marketing mix involves showing the customer the product, establishing a market and creating demand. This stage involves a lot of marketing expenses.

Growth stage- As the customers are aware, the sales increase and revenues start to kick in. At this stage it’s important to build a brand and create brand differentiation from other similar products in the market

Maturity Stage - As the product is in the market a many years now and has creates a niche and gained over its competition. At this stage the marketing mix will involve creating customer loyalty for the product.

Decline stage - As the product market is saturated, the demand for the product declines although it may continue to have its loyal customers. At this stage the marketing mix also declines.