Product life cycle and corresponding marketing strategy;

First, the characteristics and marketing strategy of the lead-in period

The main characteristics of this stage are: the product technology and performance are not perfect; Small production batch, high trial production cost and high product cost; Users don't know much about products, the sales volume is small, they need to do a lot of advertising, and the promotion cost is high; The enterprise has little or no profit, or even a loss; There are fewer competitors in the market. According to these characteristics, the focus of enterprise marketing is to improve the vitality of new products, make products accepted by users as soon as possible, and promote their transition to the development period.

There are usually four marketing strategies adopted:

1, high price and high promotion strategy.

That is, new products are launched at high prices and high promotion costs, so as to quickly seize the market. Setting a high price will certainly affect the rapid opening of product sales, but due to a large amount of advertising and other publicity expenses, we can create a high-quality or brand-name image of products in the market, so that consumers can have psychological trust in products and realize the high quality and good price of products, thus alleviating the adverse effects brought by high prices. The market conditions for adopting this strategy are: customers who already know this new product are eager for novelty and willing to pay a high price; Facing the threat of potential competitors, enterprises urgently need to establish well-known brands as soon as possible.

2. High price and low promotion strategy.

That is, launch new products at high prices and low promotion costs. Only by combining the two can we get more profits from the market. The market conditions for implementing this strategy are: the market capacity is relatively limited; The products are really famous and unique, the demand price elasticity is small, and people in need are willing to pay high prices; The threat of potential competition is not great.

3. Low price and high promotion strategy.

That is, vigorously launch new products with low prices and high promotion costs. This strategy can make products enter the market at the fastest speed and make enterprises gain the largest market share. The market conditions for adopting this strategy are: the market capacity is quite large; The demand price elasticity is large, and consumers are unfamiliar with the product, but they are very sensitive to the price; The potential competition is very fierce.

4. Low price and low promotion strategy.

That is, new products are launched at low prices and low promotion costs. The purpose of low price is to make consumers accept new products quickly, and low promotion cost can make enterprises gain more profits and enhance their competitiveness. The market conditions for implementing this strategy are: large market capacity; Consumers are familiar with products and sensitive to price; There are quite a few potential competitors, etc.

Second, the characteristics of the development period and marketing strategies

The main characteristics of the development period are: the products are basically finalized and mass-produced, and the cost is greatly reduced; Consumers are quite familiar with products, sales have risen sharply, and profits have also increased rapidly; A large number of competitors have stepped in and the competition is fierce.

At this stage, enterprises can consider adopting the following strategies:

1, improve product quality.

2. Open up new markets.

3. Establish product image.

4. Enhance the effectiveness of sales channels.

Choosing the right time to lower the price can attract more consumers and attack competitors.

Third, the characteristics of maturity and marketing strategies

The main characteristics of this stage are: although the sales volume has increased, it has approached and reached saturation, and the growth rate has shown a downward trend; Profits reached the highest point and began to decline; Many similar products and substitutes enter the market, and the competition is fierce.

The situation of mature operation is more complicated, and it is necessary to proceed from the reality of enterprises and products. For enterprises with weak strength or weak product advantages, defensive strategies can be adopted, that is, by implementing preferential prices and quality services, the existing market can be maintained as long as possible. For products that are unable to compete, we can also adopt a retreat strategy, that is, eliminate this product in advance to concentrate on developing new products and make a comeback. If the enterprise is strong and its products are competitive, it should actively adopt offensive strategy.

Offensive strategies are often developed from the following three aspects:

1, product reform strategy.

It refers to retaining old customers and attracting new customers by obviously improving the performance, quality and color of products, thus prolonging the maturity period, even breaking the stagnant sales situation and raising the sales curve again.

2. Market redevelopment strategy.

That is to seek new users of products, or seek new market segments, so that products can enter markets that have never used this product, such as expanding from cities to rural areas.

3. Reorganization strategy of marketing factors.

Refers to the comprehensive use of marketing factors such as price, distribution and promotion to stimulate consumers to buy. Such as reducing prices, opening up various sales channels, increasing sales outlets, strengthening sales services, adopting new advertising methods, and carrying out prize-winning sales activities.

Fourthly, the characteristics and marketing strategies of the recession.

The recession period is characterized by: a large number of substitutes enter the market, and consumers' loyalty to old products declines; Product sales have dropped sharply, prices have fallen, and profits have dropped sharply; Competitors withdraw from the market, etc.

In this regard, enterprises usually adopt the following strategies:

1, contraction strategy.

That is to shorten the front line and concentrate the resources of enterprises on the most favorable market segments, the most effective sales channels and the most marketable varieties and styles, so as to obtain as much profit as possible from the most favorable factors.

2. Sustained strategy.

Because many competitors have gradually withdrawn from the market in the declining stage, and there is still a certain demand for this product in the market, enterprises with reduced production costs can continue to maintain the original market segments, continue to use the past marketing mix strategy, and maintain the sales volume at a certain level until the time is ripe.

3. Retreat strategy.

When the product is no longer profitable, we should stop production decisively as soon as possible and devote ourselves to the development of new products. Otherwise, it will not only affect the profit income of the enterprise, occupy the limited resources of the enterprise, but more importantly, it will affect the reputation of the enterprise and leave a bad corporate image in the hearts of consumers, which is not conducive to the future products of the enterprise entering the market.