Question

How will you alter the marketing mix –intensity & composition ,as a product is entering the maturity stage in the lifecycle? How again the marketing mix will have to be modified ,when the same product ,later on, starts showing sales – decline?

Answer 1

The marketing mix in the introduction stage of the product should be intensive and targetted towards market penetration with an effort to reach the maximum prospects to gain maximum market share. The firm makes experiments in this period to reach the most optimum marketing mix to achieve its strategic objectives.

In the maturity stage, the mix should focus on the aspects that yield the maximum output because by now the firm has found out its target groups, preferred product compositions and sizes, the type of promotional strategy best suited to them and the price point that optimises the sales. The intensity is now moderate and stable and the focus is shifted on optimality.

In decline stage, the promotional strategy is focused on most loyal customers and their preferences, with an effort to retain the numbers. The price can be reduced to stabilise the sales and clearing off the inventory. The mix should focus on the markets where the product still commands good reputation and demand. The product should be modified or upgraded to appeal the customers who might be looking forward to a new alternative, with an aim to stretch the decline phase as much as possible