Marketing Plan: Phase III Paper Nextel
The product life cycle of our product will affect our marketing plan, because as the product goes through each of the separate stages of the product life cycle, the marketing mix will be adjusted to compensate for the different consumer responses typical for each stage. A productÆs life cycle generally proceeds from the introduction stage when it is first released to the growth stage when it has become known and is being marketed to increase market share (ôThe Product Life Cycleö). The growth stage is followed by the maturity stage, where sales may be falling off and similar products may have been introduced to the market (ôThe Product Life Cycleö). Finally, in the decline stage, the product is reaching the end of its life cycle and sales are declining (ôThe Product Life Cycleö).
In the introduction stage, its branding and quality need to be established, and the price needs to be lower to ensure penetration and build market share readily; promotion in this stage is aimed at ôinnovators and early adopters and to educate potential consumers about the productö (ôThe Product Life Cycleö). In the growth stage, the firm concentrates on maintaining product quality and pricing and looks at adding new features and distribution channels, while aiming promotion at a broader audience (ôThe Product Life Cycleö). In the maturity stage, the productÆs features are enhanced to make it stand out from its competitors and the pricing must stay competitive, while distribution efforts increase and incentives are offered to buy the product (ôThe Product Life Cycleö). In the decline stage, the companyÆs actions will depend on consumer response; if it is still selling well, it can be maintained with some new features (ôThe Product Life Cycleö). If it is not selling as well, the price can be reduced and it can be marketed to a loyal consumer niche (ôThe Product Life Cycleö). If it is...