Introductory phase, rapid growth phase, leveling stage, maturity, and change.
This review is a brief complement to the article: The product life cycle: a life full of changes, where it is intended to analyze a bit the stages of market growth from the point of view of the type of marketing to use at each stage.
As product markets grow, consolidate, and perhaps decline or end, marketing strategies must evolve accordingly in response to changes in market mindset, customer philosophy, technological or service evolution, and level of competition faced.
The introduction: (the new market concept arrives).
When a new business opportunity is conceived, a marketing strategy is born at the same time, it is time to explain to new consumers the advantages, facilities and benefits of the business idea and the branding strategies should show users an image new, fresh and where the buyer is «educated» about the importance of regularly buying said product or service.
It is time to clearly determine the potential market (its volume) and the type of buyer and message to be used, everything is new and the introduction may seem like a party and a real novelty.
At this stage the key points will be:
- Maximize the number of users who will learn about the new product. Create a primary demand, that is faithful to the brand and that becomes a multiplier (by advice or recommendation) of the product that is offered. Learn about the behavior of buying, selling and distribution of the good, the details of time (frequency of consumption), fashion (preferences), lines (prices and volumes, etc.)
It is the start up stage of the marketing process.
The rapid growth phase: (expansion to the maximum)
After the initial hangover, where consumers have been constantly bombarded with the product idea, it is time to create economies of scale that lead to continued increases in consumption and sales levels.
It is time to demonstrate the benefits of the product, start thinking about dynamic competition (moving from paper to reality) and above all, establish the competitive advantages that generate constant and continued growth in the market share of the product.
From a marketing point of view, it's time to go from novelty to consistency, and start developing longer-term campaigns in terms of advertising to get continued and growing recall.
At this stage the key points will be:
- Create a product culture that generates continuous increases in sales. Establish competition principles and competitive strategies. Generate competitive advantages. From an economic point of view, reach the point of balance.
These stages must be successfully overcome, otherwise there is no point in continuing.
The leveling stage: (working on solid foundations)
When the growth of the market depends totally on the competition and the call (market share), and not on the novelty of the product or the initial growth, it goes to the leveling stage, it is the moment in which the players define a market position (leader, small, large etc) and the company is fully consolidated.
In terms of marketing it is time to defend a winning competitive position or seek to increase a market position.
If the first thing happens: The time has come to try to "tie" customers, offer them special advantages (promotions, contests, etc.), generate elements that tie the customer to the company and show themselves as the strongest.
If the latter occurs: It is time to redesign the marketing strategies because our market share is not enough and it is time for open competition.
It is generally at this stage that the true results of the initial marketing efforts are shown.
At this stage the key points will be:
- Determine the minimum market percentage the company should have. Evaluate the marketing strategies used to continue or change them. Stabilize the marketing and advertising budget. Adequately balance the marketing mix with reliable data.
The change or disappearance:
When the product begins to decline in sales, new purchase volumes are insufficient, you have better ideas or you simply lose profitability, it is time to change or undo.
In terms of marketing, it is time for the product to be fired or reinvented, which implies a reduction in advertising budgets if the first case occurs, and a new evaluation and reformulation of marketing if the second occurs.
It is important to make the decision of change or abandonment in a timely manner, otherwise all previously won will be lost.
In this last stage, the key points will be:
- Determine whether the project is ongoing or not. Evaluate the overall effectiveness of the project. Think of new marketing ideas if you continue. Learn from experience.
It is important to learn how to correct mistakes along the way quickly, to generate consistent marketing strategies in the long term.
