Extending the Product Life Cycle: A Strategic Approach for Marketers
The product life cycle, a concept developed by Alfred Eisenstaedt, outlines the stages a product goes through from introduction to retirement. It serves as a useful tool for marketers to understand the market and consumer behavior, as well as to develop strategies to maintain a product’s value and extend its lifespan. In this article, we will explore the various ways marketers attempt to extend the product life cycle.
The Traditional Approach: Push Strategy
The traditional push strategy, developed by Alan Bullock, focuses on increasing the product’s visibility and demand through marketing efforts. Marketers attempt to excite consumers, increasing awareness, and venturing into new markets to drive sales. This strategy involves launching new products, increasing advertising budgets, and implementing targeted marketing campaigns.
However, the push strategy has limitations. Volume marketing can lead to overconsumption, while new product launches can cause consumer fatigue. Moreover, acquisitions and mergers may compromise product quality and disrupt the market.
The New Product Development (NPD) Strategy
The NPD strategy, developed by David Barton, aims to create new products that meet changing consumer needs and preferences. Marketers focus on adding value to products through innovation, packaging, and design. This approach helps to maintain product freshness and attract new customers.
The NPD strategy involves design for the platform (DFP), which enables marketers to develop products that work well across different distribution channels. Integration with complementary products and digital platforms also facilitate marketing efforts.
Competitive Advantage Strategy
The competitive advantage strategy, developed by Robert Haas, targets specific segments of the market by understanding consumer preferences and behaviors. Marketers employ targeted marketing, segmentation, and personalization to differentiate their products from competitors.
This approach allows marketers to attain a premium pricing and increase brand loyalty. However, fragmentation of markets can make it challenging to achieve a dominant position.
Digital Marketing Strategy
The digital marketing strategy, developed by Bill Bernbach, leverages online channels to reach consumers. Marketers utilize search engine optimization (SEO), paid advertising, and social media to create a brand-awareness platform.
The digital marketing strategy enables marketers to serve a wider audience, increase sales, and maximize returns on investment. However, obsolescence of digital content can lead to churn and underutilization.
The Retail Strategy
The retail strategy, developed by Neil Plummer, focuses on leveraging retail channels to drive sales. Marketers employ retail execution, cross-functional collaboration, and synergies to create a retail brand.
This approach helps to accelerate product pricing, manage profitability, and generate short-term wins. However, retail constrained product due to supply chain constraints can limit marketing efforts.
International Expansion Strategy
The international expansion strategy, developed by Victor Kieserl, targets markets with a growing demand for the product. Marketers employ market segmentation, combined arms marketing, and export financing to march into new markets.
This approach enables marketers to scramble the customer base and create multiple revenues streams. However, operations unfamiliarity with local markets can lead to missteps and losses.
The Total Product Life Cycle (TPLC) Strategy
The TPLC strategy, developed by Judith Hill, integrates traditional product life cycle, NPD, and competitive advantage strategies to create a profitable marketing model.
Marketers employ targeted marketing, segmented customer groups, and co-create consumer experiences to create a fresh-to-market product.
Globalization Strategy
The globalization strategy, developed by Hans-Reiner Adams, targets international markets with a growing demand for the product. Marketers employ transcultural approaches, dialectical business approaches, and fruitplate alliances to expand markets.
This approach enables marketers to diversify customer bases, manage resources globally, and achieve sustainable growth. However, different cultural attachment and market thickness can lead to service rationalization and premium pricing.
The Measuring and Management of Product Life Cycle Strategy
The measuring and management of product life cycle strategy involves product density, product complexity, and marketing objectives. Marketers employ Gross Margin Reporting, Purchasing Decision Feedback, and Financial Performance Measurement to manage the product life cycle.
Conclusion
The product life cycle is a dynamic and evolving concept that requires marketers to adapt and innovate to remain competitive. By employing the strategies outlined in this article, marketers can extend the product life cycle, maintain product freshness, and attract new customers.
However, it is essential to recognize the limitations and challenges associated with each strategy. Marketing teams should consider the market size, product demand, and existential validation before choosing a strategy.
Ultimately, marketers must achieve sustainable business growth by measuring the ROI of their strategies and continuously adapting to the market’s needs. By doing so, they can extend the product life cycle and ensure the success of their products.