Question

1. Think about all of the many products you can purchase today. Identify one product that currently represents each phase of the product life cycle, and make a brief statement about its
competition, price, distribution and promotions

Answer 1

Answer:

Answered

Explanation:

We can take a Andriod smartphone as one of the product. Definitely, each unique smartphones including both the high and low-end products represent the four distinct stages of product life cycle. The nature of competition, price, distribution and promotion can be differentiated well among different stages of the life cycle.

As far a competition is concerned, at the introduction phase, the competition will be too high. For the high-end phone coming with unique features (i.e. unique value to the customer) will face less severe competition at this time. As the growth phase comes, the uniqueness will disappear as others will also come out with similar features in their features. As a result, the competition will intensify and will reach the maximum at the maturity of the product.

The pricing strategy at different stages will depend upon the generic strategy of the company. At the introduction stage, if the company is having a differentiation strategy, it usually goes for a premium price. Others, having cost leadership strategy will go for low price. Sometimes the low price is kept initially at a very thin or zero margins just to capture the market share. However, for smartphones, this is very difficult. As competition intensifies in growth and maturity, the price falls. This is the fate generally with most of the Andriod smartphones as their features are not inimitable. Huge discounts in price can be observed for smartphones at their decline phase due to obsolescence of technology.

It has become a trend nowadays to initially distribute the smartphones through an online retail partner where the smartphone manufacturer gives an exclusive right to the retail partner to sell the initial lots. The retailer first books the order and then does the transaction. As the product gets publicity and attains its growth, it is sold in other places such as company outlets, bricks-and-mortar retailers, supermarkets, eStores etc. up to the maturity and decline phase.

As in distribution, the promotion becomes huge by the online retail partner at the introduction phase. The smartphone manufacturer also uses direct marketing, imagery, and social media marketing as primary tools at this phase.