The product life cycle also helps managers avoid the pitfalls of the different stages. Relationship marketing builds strong economictechnical and social ties among the parties [ 4 ]. Loyal users of a product can be retained when the brand or the rights to produce and sell the product are handed on to a niche operator or by subcontracting.
These functional strategies are defined as follows. Get in touch with the TLC team to find out which one of our 1, partners you could work with.
This stage comes after a successful introduction and involves sales growth. This result has to be treated with caution. The link between the marketing strategy and development was diagnosed form the earlier empirical studies [ 26 - 28 ].
Advertising should aim at building product awareness among innovators and early adopters.
Usually, the firm will have tried to keep the product as long as possible in the maturity stage. This can be accomplished by inducing the SMEs to be uniqueness and differentiated marketing activities at the same time high quality marketing mix features adaptations.
This does often happen as a result of the market entry of substitute products which satisfy customer needs better than the previous product. Reward word-of-mouth recommendations with discounts on the customer's next purchase.
Since the accession of Saudi Arabia to the World Trade Organization in Decemberthe market has become more competitive, efficiency and improvements are therefore critical factors for the success of firms. In this case, primary demand will first have to be established. Meanwhile, it could be that the product was merely dipping in sales, as a result of economic externalizations, which will eventually lift.
Diversification is the riskiest area for a business. Profits are generated as sales revenues increase faster than costs. Emphasize other product benefits or uses for the product than what you have employed in advertising and promotion in the past.
You do this by cutting back on discretionary expenses such as advertising and not making further investment in production capacity for the product.
This study has practical implication with suggesting major strategies for development of SMEs in the postwar market; these strategies are also roadmap to foothold the nation towards the emerging market. Pros of the Product Life Cycle The product life cycle helps with planning.
The SME sector has been identified as an important strategic sector in the overall policy objectives of the Government of Sri Lanka GOSL and it is seen as a driver of change for inclusive economic growth, regional development, employment generation and poverty reduction [ 5 ].
In addition, the slow decline of the product provides the firm with sufficient time to adjust to the declining cash flow and to find alternative means of generating income.
They are green marketing strategy, effective marketing strategy [ 26 ], social network marketing strategy [ 30 ], relationship marketing strategy [ 31 ], product market strategy and innovation types, product life cycle based marketing strategy [ 32 ], sustainable marketing strategy, marketing strategy for SMEs [ 27 ], market expansion strategy [ 26 ], innovative marketing strategy, global marketing strategy, export marketing strategy [ 25 ], enviropreneurial marketing strategy, competitive marketing strategy [ 33 ] and product market strategy [ 16 ].
Porter [ 17 - 19 ] designed corporate strategy as cost leadership, differentiation and focus strategies. It is suggested that firms give more importance to market share analysis, as this activity is more of a contributor to sales turnover than other activities.
The market, at this point, is becoming saturated with the product. Strategy focus by firm size has been analysed considering the number of employees as a measure of firm size. However, some firms get involved in the production of both consumer and industrial goods. In addition, firms can conduct analyses of performance, customer analysis, competitor analysisand target market analysis.
At the same time, some advertising must be shifted from building product awareness to building product conviction and purchase. The maturity stage shows a peak in sales of the product. Therefore this paper aims to develop conceptual model of proper marketing strategies and the development of SMEs in Northern Province in postwar market.
Actually, a significant share of new products fails to progress beyond the introduction stage of the PLC. For a company to have effective innovation strategies which work correctly within their business, they really need to establish these three pillars of innovation in order for the new ideas to make the best use of new technology while still being informed by business growth strategies and market research.
Nevertheless, most firms carry out strategic planning every 3- 5 years and treat the process as a means of checking whether the company is on track to achieve its vision and mission. Two pricing strategies are available. Tactically, nichers are likely to improve the product or service offering, leverage cross-selling opportunities, offer value for money and build relationships through superior after sales service, service quality and other related value adding activities.
Thus, it is suggested that future studies should consider this issue as a possible direction for a study. Therefore, it is absolutely crucial to ensure that the products provide valuable benefits to the customer and superior customer value if survival and growth are to follow.
Although these products have changes only very little since their launch, they are still highly successful or even more successful than ever.
Cons of the Product Life Cycle The product life cycle is too clean a picture. Preemption of Assets can help gain an advantage through acquiring scarce assets within a certain market, allowing the first-mover to be able to have control of existing assets rather than those that are created through new technology.Strategic positioning and grand strategies for high-technology SMEs.
development as well as marketing advances, and decreasing product life cycles. Based on ordered probit models, Table 6. based. entrepreneurship. How to bridge the innovation gap (high investments in new knowledge, low economic returns) Role of IP in Companies` Functional Organization and Product Life Cycle.
Importance in International Markets. Empirical Evidence. 5. The Strategic. Role. for. Marketing Strategies of SMEs in Emerging Markets. Methods. Every product has a life cycle, which is similar, in some ways, to the cycle of life.
First, is the production stage, in which the product is manufactured, processed or harvested. The journal article I have selected for my assignment is the “MARKETING STRATEGIES OF SMEs BASED ON PRODUCT LIFE CYCLE – A STUDY AMONG SMEs IN KOSOVO” by Professor Bekim Marmullaku taken from the International Journal of Economics, Commerce and Management published in the United Kingdom on 9.
For the development of effective marketing strategies, an understanding of the different characteristics of the product life cycle stages is absolutely crucial. Based on this understanding, marketing implications can be derived.
The product life cycle theory draws an analogy with the life cycle of human beings, in that every product in a market is mortal.
In the world of biology, each stage in the cycle is fixed, with one stage following on from another in both an invariable and irreversible order.Download