Marketing Actions Based on the PLC 

The 4 Ps of marketing—Product, Price, Place, and Promotion—are essential components of a marketing strategy. Understanding how these elements change during the different stages of a product's life cycle can help businesses effectively manage their products and maintain market relevance. The product life cycle consists of four main stages: Introduction, Growth, Maturity, and Decline. Let's explore how the 4 Ps are affected during each of these stages, with real-life examples to illustrate these concepts.

 

Introduction Stage​

Product:

During the introduction stage, the focus is on launching the product. The product is usually new to the market and may have unique features or innovations. Companies invest heavily in ensuring the product meets quality standards and stands out. For instance, when Tesla introduced its first electric car, the Roadster, it focused on cutting-edge technology and high performance to establish a strong first impression.

 

Price:

Pricing strategies in the introduction stage can vary. Some companies use penetration pricing, setting a low price to attract customers quickly, while others use skimming pricing, setting a high price to recoup development costs. For example, when Apple releases a new iPhone, it often uses skimming pricing, targeting early adopters willing to pay a premium for the latest technology.

 

Place:

Distribution is limited in the introduction stage. The goal is to select specific channels that will effectively reach the target market. Companies might start with exclusive or limited distribution to create a sense of scarcity and exclusivity. For example, luxury fashion brands like Chanel often launch new collections in flagship stores before expanding to other locations.

 

Promotion:

Promotion is crucial during the introduction stage to build awareness and interest. Companies invest in advertising, public relations, and other promotional activities to educate potential customers about the product. For instance, when the PlayStation 5 was launched, Sony used extensive advertising and social media campaigns to generate excitement and buzz.

 

Growth Stage

Product:

As the product gains acceptance, companies may introduce additional features, variations, or improvements to differentiate from competitors. For example, after the initial success of the GoPro camera, the company released different models with enhanced features like higher resolution and waterproof capabilities.

 

Price:

In the growth stage, prices may be adjusted based on market demand and competition. Companies might lower prices to attract a broader customer base or maintain prices to maximize profits. For instance, when flat-screen TVs first entered the growth stage, prices gradually decreased as more manufacturers entered the market.

 

Place:

Distribution expands during the growth stage. Companies aim to make the product widely available through various channels to reach more customers. For example, Starbucks rapidly expanded its number of coffee shops worldwide during its growth phase to make its products more accessible.

 

Promotion:

Promotion efforts focus on differentiating the product and building brand loyalty. Companies use targeted advertising and promotions to highlight the benefits and advantages of their product over competitors. For instance, Nike uses endorsements from famous athletes and extensive advertising to promote its sportswear during the growth stage.