The modern market for goods and services is notably diverse. A particular management model is needed to properly control sales and increase the effectiveness of the marketing strategy. One of the fundamental points of this method is the product life cycle, which considers the different stages of the product’s behavior in the market and approaches to them. All decisions of marketing managers largely depend on this factor.
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4 Stages of Product Life Cycle
The first stage involves bringing a new product to the market. It is one of the most volatile phrases; it requires constant financial infusions and tight phased control. The second phase starts with a modest increase in sales and the start of profits. The product enters the market and gradually becomes reasonably competitive. With increased stability and strong sales, the product is entering its third phase of maturity. It is never fully stable and proposes periods of downturn in the market. The last stage is associated with a decrease in product sales and a loss of competitiveness in comparison with more influential brands (Prasad, et al., 2019). All four stages require a specific marketing strategy in the context of moving into the target space of services and offers.
Early Stage of the Product Life Cycle as Exemplified by the Nø Cosmetics Brand
Nø Cosmetics is an up-and-coming cosmetic brand covering the German market segment. The company has a good marketing strategy focused on all modern trends, including naturalness, safety, diversity, and uniqueness of the family brand. The product has successfully passed the introduction on the market. Now it enters a phase of active growth, where it needs to withstand the competition of innovations and an unstable sales amplitude (Aytun & Kiliçaslan, 2017). One of the marketing proposals could be access to more social platforms and intense work on a broader reach of the international market. For example, managing social networks not only in German but also in English. As an additional information platform, Nø Cosmetics can take TikTok, where the vastest quantity of target youth is concentrated.
Product Maturity Stage as Exemplified by Apple
Apple products have long been the most comprehensive technology sector on the market. They have a high level of sales and unlimited popularity among old and new users of any age and social status. The company annually holds conferences at which it presents innovations and new technological solutions. There is an opinion that the brand’s marketing strategy is abusing its weighty position in the market. It does not strike a balance between the effectiveness of the new development and the price category of the device (Wiecek-Janka et al., 2017). Many recently developed innovations work against optimizing device performance but add significantly to the cost. These trends can wreak havoc on a brand and should be managed by a conscious approach and only reasonable changes.
Comparison of the Marketing Strategy of the Brands Apple and Nø Cosmetics
Products are at different stages of the product life cycle. The cosmetic brand is just starting to enter a large market and is still in a precarious position. It requires a high investment in additional advertising, ongoing efforts to fight competitors and gain customer confidence. Apple has already reached the peak of its popularity; only the mention of its name is enough to increase sales. Its marketing strategy can only be aimed at maintaining the same efficiency of the equipment and heating the interest of users.
All four stages of the product life cycle are of prominent importance in its promotion and productive work on the market. In the early stages of brand development, it requires a lot of financial infusions and massive advertising. Later stages should be accompanied by numerous innovative improvements and reasonable prices to maintain competitiveness and keep customers’ attention in an overcrowded market of services and offers. The marketing strategy should avoid inefficiency and abuse of market position and reputation.
Aytun, U., & Kiliçaslan, Y. (2017). Product life cycle and innovativeness: The case of MENA. World Journal of Applied Economics, 3(2), 48–91. Web.
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Wiecek-Janka, E., Papierz, M., Kornecka, M., & Nitka, M. (2017). Apple products: A discussion of the product life cycle. Advances in Economics, Business and Management Research, 31, 159–164. Web.
Prasad, R. K., Jha, M. K., & Verma, S. (2019). A Comparative study of product life cycle and its marketing applications. Journal of Marketing and Consumer Research, 63, 62–69. Web.