Marketing objectives should be closely based on the product life cycle stages discussed earlier in this module: Price for an introduction might be cost plus profit or markup to reflect the true cost at first offering. In the mature stage of the life cycle, the price will be set to match competing product prices. Distribution or "Place" will be selective in the introduction stage.
The product life cycle can pertain to unnamed products as well as those associated with a specific brand name. Many factors, such as competition and technology, affect brands and their product life cycle. Nevertheless, brands or products typically go through five stages of growth: Development Stage Technically, the development stage is the "incubation stage" of a brand's product life cycle, according to the article titled "The Product Life Cycle" at netmba.
The development stage is where the product concept is conceived, developed, branded and even tested before being introduced to the market.
A lot of capital typically goes into the development stage, including product and advertising costs. It is certainly conceivable that a poor concept idea or the lack of capital could end the life of a brand before it is introduced.
Introduction Stage Brands and their product life cycle actually commence in the public's eye during the introduction stage.
During the introduction stage, companies heavily advertise their brands and products; and execute trade show and in-store promotions for potential wholesale and retail customers, respectively.
Company advertising is mainly focused on building brand awareness. Companies usually price their brands relatively high during the introduction stage to recoup some of their development costs. Competition is low or non-existent during this stage. Thus, a successful brand concept will usually elicit heavy sales and propel the brand toward the growth stage.
Growth Stage Brands enter the growth stage of the product life cycle when sales start growing exponentially. Brand managers may increase distribution during the growth stage to further enhance sales, according to netmba.
A company may also improve the quality of their product brands, adding various flavors or features. Because of the success of one or more companies, more competitors will enter the market with their own brands. Consequently, some competitors may try to lower prices to gain marketing share. Maturity Stage Because of increased competition, a company's brands will eventually reach the maturity stage of the product life cycle.
During this stage, competition for market share may be fierce. New competitors will often have trouble successfully entering the market as market potential is limited.
A company will often need to differentiate the brand of products toward a specific segment. For example, the company that first entered the market may focus on being the quality leader. The company may keep prices relatively higher to maintain its premium image.
The target market may include older users with a higher household income. Decline Stage The decline stage is where sales start to fall for a company's product brands. At this point, it is still possible to extend the life of the product by finding new markets for the brand like international markets; or even finding additional uses by repositioning the brand.
For example, a small detergent manufacturer may extend the life of the brand by selling to emerging markets, such as India. The company could also potentially extend the life of the brand by marketing the detergent in car washes, hotels, schools and even hospitals.
Ultimately, a brand may need to be sold or gradually discontinued if it is no longer profitable.Consumer Product Lifecycle of the Nike Shoe Team #6: Angela Santucci, Mohammad Jawas, Bo-Yang Chen, and Rashed Yousef Alkhanbouli In the ’s the Nike brand was nothing more than an idea made up by Phil Knight and Bill.
Life Cycle Stages Of Nike Products. Stages in the Product Life Cycle Abstract This paper defines and discusses in depth the four stages in the Product Life Cycle.
Most successful products pass through these four stages which are Introduction, Growth. Nike sneaker's Product Life Cycle growth Stage as more and more customers purchase the product the product's price usually rises up and even though the price is expensive the customers are still satisfied and will still pay for these products and the company will get more money income.
The New topic product life cycle of nike shoes is one of the most popular assignments among students' documents. The life cycle of a nike shoe life cycle of a nike shoe. Product Life Cycle Stages and. Big Savings on Nike shoes. Tends to cycle back to shoes from generations past. Product Life Cycle Product life cycle is the stages through which a product or its category bypasses.
From its introduction to the marketing, growth, maturity to its decline or reduce in demand in the market. A comprehensive plan to virtually close the loop on product life cycles, product use and end-of-life.
Using green tactics throughout the design process, their goal is to make Nike products more eco-friendly.