Tips for marketing and pricing at every stage of a product or service’s lifecycle
Each stage requires a unique approach.
The product and service life cycle
The life cycle of your product or service includes a lot of moving parts: research and development, sales approach, analysis, and of course, marketing and pricing. Consider the following approaches to marketing and pricing as you see your product or service through its lifetime.
Introduction and release
You will likely want to focus marketing on educating potential customers about the benefits, unique value, and uses of your new product. This period can be the most marketing intensive, as you’re attempting to build awareness.
Marketing segmentation can help you subdivide a market to better understand variances in customer needs and enable better targeting. It may also result in measuring results more accurately.
There are a number of pricing approaches to consider. Price low to reach a wide customer base. Price high for niche, high-tech, or luxury items in order to catch the eye of early adopters, influencers, and thought-leaders.
As business sales grow, you may want to refocus marketing efforts on mass media outlets and wide appeal rather than niche markets.
Higher sales should allow for lower production costs per product through economies of scale.
You may want to keep prices stable or lower if your goal is to attract new customers as well as build loyalty in the ones that you already have.
Once sales level off or begin to decline, you may want to offer promotions to customers or distributors to get them to purchase your products over your competitions’. You may even lower prices.
Marketing should focus on special features and benefits that your product offers that are different or better than the competition.
You may consider rebranding or developing new packaging to keep things fresh.
Once the product is in decline, consider a market penetration strategy which calls for focusing on your initial market by marketing more to loyal buyers, pulling in the competition’s customers, or attracting new customers.
Consider limiting additional investment in marketing or development.
Marketing a product or service through its life cycle can provide you with the knowledge and insights to reinvigorate your business with new additions or consider a new business altogether. Read more on the life cycle of a product or service.