Considering the price and promotion variables, 4 strategies can be adopted at the various stages of Product Life Cycle:
- Low – fat fast: The product launch of the product is given with a high price and high level of promotion.It serves for those markets that the majority of the potential market does not have knowledge of the product and those who are aware of its existence are anxious to have it and can pay a high price, also the company can have competition and want to create brand preference.
- Skim slow: high price and lack of The potential market is not very big and has knowledge of the product, buyers are willing to pay a high price and competition is not imminent.
The strategy of Descremado is to put a relatively high initial price for a new product. Ordinarily, the price is high relative to the expected target market price scale. That is, the price is put at the highest possible level that the most interested consumers will pay for the new product
- Rapid penetration: low and high spending on Promotion.Large market without knowledge about the product, most buyers are price sensitive, intense potential competition and manufacturing costs drop as the scale of manufacturing increases.
- Slow penetration: Low price and little promotion.Big market and it is well known that the product exists, price sensitive and with the possibility of some competition.
The Penetration strategy is to set a low initial price to achieve a fast and efficient market penetration, i.e. to quickly attract a large number of consumers and achieve a large market share. Business Study Notes is a platform from where you may easily get ready for your exams.
- Improve product quality, add new features and enhance style
- Add new models and flanking products (products of different sizes, flavours, etc. that protect the product).
- Entry into new market segments.
- Expansion of the coverage of distribution and entry into new distribution channels.
- Change in advertising, to make known the product to create preference for the product.
- Low in price to attract the next level of price-sensitive buyers,
- Changing markets: The company may try to expand the number of users in three ways:
- Convert to non-users;Constant search for new users.
- Enter into new market segments.
- Remove customers from competitors.
- Product Modification: Managers also seek to stimulate sales by modifying the characteristics of the product by quality improvements, feature enhancements or improvements style.
- Modification of the marketing mix: Product managers could also try to stimulate sales by modifying elements of the marketing mix: Prices. Distribution, Advertising. Sale promotion. Personal sales.
Market Strategies in the stage of unbelief
- Building: Increase investment company (to dominate the market and / or strengthen its competitive position)
- Maintain:maintain the level of investment of the company until the uncertainties surrounding the company are resolved
- Disinvest: selectively reduce the level of investment of the company, discarding groups of unprofitable customers, strengthening investment in lucrative niches.
Harvesting: harness the flow of money in the short term without investing the detriment of the future.Read More →