Strategic management in market life cycle

Market life cycle concept suggests that markets evolve through a life cycle.The market life cycle is divided into four stages:
1.Marketing strategies at introduction stage:The marketing strategies aim at market development.

• Product:A new product is offered to the market.Companies try to be first in the market.The product mix is small.Product innovation in high.Capital requirement are high.
• Price:The prices are high.The method use in generally cost-plus basis.The prising strategic can be :

a.Market skimming :Charge high price to skim the market.
b.Market penetration :Charge low price to capture large market share.

• Promotion :The level of promotion is high.It is used to build product awareness.
• Place :Selective channels are used for distribution of the product.
• Competition:It is limited,pioneers gain competitive advantage.

2.Marketing strategies at growth stage :The marketing strategies growth stage aim at market expansion.Growth in fast.

• Product :Quality is improved.New features are add.New market segments are entered.Product variety is offed.
• Price:Price is slightly lowered to attract price sensitive customers.Cost fall..
• Promotion :Promotion expenses are slightly increased activities shifts from product awareness to product preference and acceptance.Sales promotion is reduced.Brand awareness is emphasized.
• Place:Intensive distribution is done to increase market converge.

3.Marketing Strategies at maturity stage:The marketing strategies aim to defending the market shares.

• Product:Product differentiation is done with new Brand and models.product modification are also done in terms of quality,future,style.
• Price :Price is competition based.Price wars happen.
• Promotion :Brand loyalty is emphasized.It is reduced .
• Place:More intensive distribution strategy is followed.
• Competition :Competitive revelry peaks.

4.Marketing strategies at decline stage:The marketing strategies aim at efficiently or exit from market.

• Product:Weaker product lines are phased out.Brands are reduced.
• Price :Low but stable price strategy is used.
• Promotion :Promotion is limited to reinforcement.
• Place :Distribution :Distribution is made selective.Unprofitable channels are phased out.
• Competition :Competition is very low.