Why businesses should adopt life stage marketing approach to appeal to consumers
If you are a business owner, you most likely know about the life stages your service or product needs to enter in order to move to the next one. But do you know what marketing strategies and tactics you should implement in order to succeed? This article will tell you more about life stage marketing in general and about what marketing strategies are useful for each of the life cycles .
Product life cycle definition in life stage marketing
Let’s start with the definition of the product life cycle. Life cycle refers to the phases a product goes through from conception to extinction. The six phases are typically delineated. In addition to pricing and advertising decisions, business owners and marketers utilise the product life cycle to make significant decisions and form a market strategy. Life stage marketing is used in product marketing to distinguish between different life cycles and direct marketing efforts with correct marketing message at the target audience at the right time.
A product’s development phase occurs before its release to the market. During this phase, companies raise capital, make prototypes, test product performance, and plan their introduction. Despite the nature of this stage, it takes a lot of money without generating any revenue because the product hasn’t yet been released. During this phase, a product is difficult to create due to its complexity, its newness, and the amount of competition. From now on, marketing teams can begin to generate a buzz about the product by securing the endorsement of prominent industry voices. It is also possible to publish preliminary consumer research or testimonials. During this phase, you want to expand your brand awareness and establish yourself as a forward-thinking company.
The introduction phase is when a product is first launched to the market. In this phase, marketing teams begin building product awareness and reaching out to prospective customers. Sales are typically low and demand increases slowly at the introduction phase. Normally, advertising and marketing campaigns focus on educating potential customers about the product and creating brand awareness. You can now promote the product using inbound marketing and content marketing. Content education is important to inform potential buyers about the benefits of using your products or services before they purchase. If your marketing strategies have worked, the successful products move to the next phase — growth stage.
Tactics used during introduction phase:
Rapid skimming and slow skimming are methods used in the introduction stage in life stage marketing. A high introductory price and extensive advertising are utilised to market a product quickly, whereas a low introductory price and limited promotion are employed to market a product slowly. Rapid penetration occurs when the product is offered at a low cost with a lot of promotion, while slow penetration occurs when the product is offered at a low price with little promotion. If you’re introducing a new product, you should strive to:
- Establish a strong brand image.
- Connect with the right partners to market your product.
- Set up consumer trials or provide samples or free samples to key target groups.
- Price it as high as you believe you can sell it, and make it reflect the quality you provide.
- You can also try to limit the product or service to a particular type of buyer, which can boost demand.
Consumers have accepted the item and have begun to buy it in larger quantities during the growth phase. Target market purchases and profits are increasing as the market share grows and competition increases. During this phase, competitors will attempt to enter the market. The growth stage is when the market expands and competition develops. To keep consumers from switching to competitors, firms often shift from persuading consumers to buy their goods to establishing a brand presence as they grow. As companies expand, they will open new distribution channels and expand their feature and support successful products offerings. You will likewise advertise these in your marketing strategy.
During the maturity phase, sales begin to level off after the rapid growth phase. To stay competitive in an increasingly competitive environment, companies begin to discount their goods at this stage. During the introduction and growth phases, businesses become more efficient and learn from their errors as a result of marketing campaigns that focus on distinctiveness rather than awareness. During the maturity phase, products begin to enter their most profitable period as the cost of production declines and sales increase. Product features might be enhanced, prices might be lowered, and distribution might be enhanced.
It’s crucial to set yourself apart as a leader and distinguish your brand when your product has become a mature offering, since sales are strong and the product has been established. You may feel as if you’re “sailing by” because things are going well and the product has been established. However, this is where you must continuously enhance the product as it becomes more popular, letting your clients know that the product they love is even better than before. This will safeguard you once the evidence of market saturation emerges.
The stage prior to product saturation is one in which competitors take a portion of the market and products experience neither growth nor decline in sales. In this phase, there are typically many competing firms. Consumers are using a lot of products at this point, but there are also many competitors. In this phase, you want your product to become the demand brand. If the market becomes saturated, you will have to focus on attributes, brand awareness, price, and customer service in your marketing plans. Competition is highest at this stage, so it is critical to guarantee the excellence of your product. If product-level innovation isn’t feasible (because the product only requires minor modifications at this point), invest in customer care and utilise customer reviews in your marketing campaigns.
If a brand is not the first choice in a market, your sales will drop. As time goes on, new trends emerge. In this situation, a firm either discontinues their product, sells their firm, or updates their product in some way. It’s difficult to avoid the decline stage in business, but some firms might be unable to avoid it. You can concentrate on nostalgia or highlight your product’s advantages to escape the decline stage in your marketing strategy. You can also implement new advertising strategies or lower prices, add new features to increase their value proposition, explore new markets, or alter brand packaging to prolong the product life cycle. The best firms typically have products at several phases of the product life cycle. To begin the cycle again in other countries, some firms look to other countries for inspiration.
When and how to use a product life stage marketing approach?
A brand-new product is marketed differently than a mature, established one. The former focuses on raising awareness whereas the latter focuses on maintaining it. Businesses can also utilise the product life cycle as follows:
- Establish competitive authority
If your product is new to the market, you may advertise it as an alternative to an existing product to establish competitive authority and expand your market segment. If your product is established and has a long history of use, you may assert its historical importance in your company’s branding.
- Choose a pricing strategy
You will select how to value your product depending on the phase it is in. A new product may be discounted to appeal to consumers and increase in marketing efficiency, while a product in the growth phase may be priced higher. Build a marketing strategy and work on the correct marketing message to build rapport with your potential customers, and a product’s life stage will help you decide what market strategy you should adopt.