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@  As the product is introduced in the market heavy

expanses incurred with product introduction. This is a period of slow
sales growth and profits are nonexistent.

    Period of rapid market acceptance and substantial profit

improvement.

 !
 A period of slowdown in sales as product has achieved
acceptance by most of the potential buyers. Profits also stabilize or
decline because of increased competition.

 "  The period when sales show downward drift and profits
erode.
m 
  
  

˜n ˜ntroduction stage the firm seeks to build product awareness &

develop a market for product. Following are the impact on marketing
mix in this stage.

@
 branding and quality level is established, Patents and trade

marks are obtained.

 may be low penetration pricing to build market share rapidly,
or high pricing to recover development cost.
 " is selective until consumer shows acceptance of the
product.

 is aimed at innovators and early adaptors (high income
group).
# !
 $
 seeks to build product awareness to
educate the potential consumers about the product.
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The growth stage is marked by rapid growth in sales, as additional

consumers start buying product. Attracted by these opportunities new
competitors enter in to the market. During this stage following
strategies are used by firms:

1. ˜t improves
 
 and adds new product features &
improve styling.
2. ˜t adds new models and flanker product (Different size, flavors etc.)
3. ˜t enters % 
 
4. ˜t increases its  
 and enters new distribution
channels.
5. ˜t shifts from product awareness advertising to  

.
6. ˜t lowers  to attract the price sensitive buyers.
 m 
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This stage normally lasts longer than the previous stages, and poses
formidable challenges to marketing management. The maturity stage
divided into three phases: growth, stable & decaying maturity.

@ !
 !
 The company might try to expand the market for
its mature brand by working with the two factors that make up sales
volume:

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@
 
. Ex. Airlines
i     . Ex. Jonson & Jonson
   


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 !
 managers also try to stimulate sales by
modifying the product¶s characteristics through:

‡ Œ
  aims at increasing the product¶s functional
performance.
Ex. Splendor Plus (Hero Honda)

‡ 
  aims at adding new features that expands
the product¶s versatility, safety or convenience.
Ex. Self start in Splendor Plus

‡   aims at increasing the product¶s aesthetic

appeal.
Ex. maruti Alto Sports Edition.

Y 
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 !
&!' !
 managers also try to stimulate sales by
modifying marketing ±mix elements. They should ask the following
questions:
‡ m Would a price cut attract new buyers?
‡ !
 Can more outlets be penetrated? Can company
introduce product into new distribution channel?
‡ "  Should the advertising expanse be increased? Should
the timing, frequency, or size of ads be changed?
‡  m Should the company set up sales promotion ±
Coupons, rebates, gifts, contest & warranties?
‡ m   Should the sales territory be revised? Should the
number or quality of sales force be increased? Should the sales
force incentives be revised?
‡  Can company extend more credits? Can it speed up
delivery? Can it extend more technical assistance to customers?
 m 
 
 

Sales Decline for number of reasons, including technological advances,

shifts in consumer tastes, and increased competition. All leads to
overcapacity, increased price cutting, and profit erosion. Following are
the five strategies available to the firm:

1. ˜ncreasing the firms investment to dominate the market or strengthen

the competitive position.
2. maintaining the firm¶s investment level until the uncertainties about the
industry are resolved.
3. Decreasing the firm¶s investment level selectively, by dropping
unprofitable customer groups, and strengthening the firm¶s investment
in lucrative niche.
4. Harvesting the firm¶s investments to recover the cash quickly
5. Divesting the business quickly by disposing its assets as
advantageously as possible.
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