Even if your product originally was a ground-breaking product, you probably now have competitors who offer something similar. The marketing mix may be modified as follows: Samples or trial incentives may be directed toward early adopters. The firm could also launch a better advertising campaigns or rely on aggressive sales promotion.
The marketing mix should take into account what customers expect in terms of price. The first few seats are sold at a very cheap price almost a promotional price and the middle majority are economy seats, with the highest price being paid for the last few seats on a flight which would be a premium pricing strategy.
New Product Pricing Strategies: It is headquartered in Enderby near Leicester, England. It offers customers clothing and accessories for men, women and children and a complete selection of home goods. New products were developed and the market for watches gained a reputation for innovation.
Modifying the product refers to changing characteristics such as quality, features, style or packaging to attract new users and inspire more usage. The high sales volume leads to falling costs, which allows companies to cut their prices even further.
Advertising costs typically are high during this stage in order to rapidly increase customer awareness of the product and to target the early adopters.
The competing products may be very similar at this point, increasing the difficulty of differentiating the product. Consumers might practice a decision avoidance approach when buying products in an unfamiliar setting, an example being when buying ice cream.
Promotion - Emphasis on differentiation and building of brand loyalty. The following are some of the marketing mix implications of the introduction stage: Product - The number of products in the product line may be reduced.
Price - Possible price reductions in response to competition while avoiding a price war. By introducing products at very low prices, a large number of buyers is attracted, making Ikea the biggest furniture retailer worldwide.
As a consequence of the increase in competitors, there is an increase in the number of distribution outlets and sales are augmented due to the fact that resellers build inventories.
Sales may plummet to zero, or they may drop to a low level where they continue for many years. Discontinue the product when no more profit can be made or there is a successor product. Consequently, it poses strong challenges to marketing management and needs a careful selection of product life cycle strategies.
Once the product has been proven a success and customers begin asking for it, sales will increase further as more retailers become interested in carrying it. Now, there is more than one main goal: Introduction stage — Product Life Cycle Strategies The introduction stage is the stage in which a new product is first distributed and made available for purchase, after having been developed in the product development stage.
We will now go into these four PLC stages in detail to identify characteristics of the stages and product life cycle strategies for each. Product - New product features and packaging options; improvement of product quality. Our financial objectives in terms of price will be secured on how much money we intend to make from a product, how much we can sell, and what market share will get in relation to competitors.
It requires advertising and sales-force efforts that could better be used for other, more profitable products in other stages. Answer In terms of the marketing mix some would say that pricing is the least attractive element. Several product life cycle strategies for the growth stage can be used to sustain rapid market growth as long as possible.
Price-skimming or market-skimming calls for setting a high price for a new product to skim maximum revenues layer by layer from those segments willing to pay the high price. Cost-plus pricing should be used to recover the costs incurred. Product quality should be improved and new product features and models added.
Some countries tax inelastic goods such as alcohol or petrol in order to increase revenue, and it is noticeable when you do travel overseas that sometimes goods are much cheaper, or expensive of course.
Promotion - Promotion is aimed at building brand awareness. Product - one or few products, relatively undifferentiated Price - Generally high, assuming a skim pricing strategy for a high profit margin as the early adopters buy the product and the firm seeks to recoup development costs quickly.
However there are other important approaches to pricing, and we cover them throughout the entirety of this lesson. Since promotion costs are now spread over a larger volume and because of the decrease in unit manufacturing costs, profits increase during the growth stage. Use a high price where there is a unique brand.
Price - Prices may be lowered to liquidate inventory of discontinued products. Which product life cycle strategies should be applied in each stage is crucial to know in order to manage the PLC properly.Marketing Plan – Next 1 Marketing Plan NEXT Plc.
Marketing Plan – Next 2 Table of Contents implementation of marketing strategies through which the NEXT will aim to expand its market share and consumer base.
Also, the current situation of Chinese apparel industry and NEXT Marketing Plan –. NEXT PLC operates through NEXT retail stores within UK and Eire, Next directory, a direct catalogue and transactional website with over two million active customers and NEXT franchise which includes around stores worldwide.
MARKETING STRATEGY ON DIFFERENT STAGES PLC AND ITS MARKETING IMPLICATIONS ON FMCG PRODUCTS DR. NEETU SHARMA subsequent effects on the product marketing mix and marketing strategies. A graph that is The pricing strategy may be low to ease the entry into the market if there are already established firms while it may be high if there are.
Marketing > Product Life Cycle. The Product Life Cycle. A product's life cycle (PLC) can be divided into several stages characterized by the revenue generated by the product. Next Plc ranks number two in apparel in the UK in with 5% of value sales, therefore holds a leading position the UK clothing market.
In footwear, Next ranks number five with a 3% value share. In men's and women's outerwear it ranks two and three, with 5% and 6% of value sales, respectively, in Our strategies and objectives The primary financial objective of the NEXT group is to deliver long term returns to shareholders through a combination of sustainable growth in earnings per share and payment of cash dividends.Download