- \n
- Introduction<\/li>\n
- Growth<\/li>\n
- Maturity<\/li>\n
- Decline<\/li>\n<\/ul>\n\n\n \n
\n <\/a>\n <\/div>\n \nDownload our Free Resource \u2013 Essential marketing models<\/strong><\/p>\n
With so many marketing models to choose from, it can be difficult to know which is the best to use in a specific situation. This free guide has been created to help today\u2019s marketers apply our pick of the most popular established frameworks to aid their decision making.<\/p>\n
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New Product Development<\/h4>\n
The new product development stage occurs before the product's life-cycle begins, consisting of market research<\/a> leading up to product launch. Hence this stage can include:<\/p>\n
- \n
- Reviewing demand for products<\/li>\n
- Assessing brand perception<\/li>\n
- Competitor benchmarking<\/li>\n
- Understanding consumers' preferences and behaviours<\/li>\n<\/ul>\n
What do the PLC stages mean?<\/h3>\n
The four stages are shown in the table below, although decline can be avoided by reinventing elements of the product. It is also recognized that some products never move beyond the introduction phase whilst others move through the life cycle much faster than others.<\/p>\n
![\"The](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2014\/01\/The-Product-Lifecycle-model.png\")
<\/p>\nOur marketing model resources are designed to help marketers, managers, and business owners plan, manage, and optimize their marketing activities to improve performance and achieve their goals.<\/p>\n
![\"Sign](\"\/wp-content\/uploads\/2019\/10\/si_blog_banner.png\")
<\/a><\/p><\/span><\/p>\nIntroduction<\/h4>\n
Product marketing managers must introduce their new product while it's relatively unknown and production is small. The price is often higher as distribution is limited and promotion is personalized.<\/p>\n
At this point, it is worth returning to the infamous statistic that 95% of new products fail<\/a>. So planning is key.\u00a0We recommend planning your new product launch using the RACE planning framework.<\/p>\n
Our marketing solutions for Business Members helps define the types of communications, best practices and optimization techniques across the RACE planning framework that maximize your customers' and products' lifetime values.<\/p>\n
![\"Lifecycle](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/11\/Lifecycle-Marketing-Model-WEB.png\")
<\/p>\nGrowth<\/h4>\n
Congratulations - popularity for your product is growing! As your market share increases, now is the time to focus your RACE objectives on market penetration and development -\u00a0 such as communicating product benefits and building the brand.<\/p>\n
Since your product is being bought in greater numbers and, with volume, the price is declining and profits increase. When upscaling any business, bear in mind the practical implications for resource, sumarized by Lilach Bullock in her blog blog 4 essential elements of a scalable business<\/a>:<\/p>\n
Scale too quickly and you can suffer from not being prepared. Scale slowly or unevenly and you may get stuck with employees you hired that you don\u2019t need anymore. Overall, you need to ensure that the rate of your growth doesn\u2019t hurt you in the long run.<\/p><\/blockquote>\n
<\/a><\/p><\/span><\/p>\nMaturity<\/h4>\n
The product competes with alternatives and its pricing drops. Distribution becomes intense (it\u2019s available everywhere) and promotion focuses on the differences to competitors\u2019 products.<\/p>\n
When managing differentiation strategy, DRIP is another marketing model featured in our essential marketing models guide<\/a>. DRIP is an acronym for differentiate, reinforce, inform and persuade.<\/p>\n
![\"DRIP](\"https:\/\/www.smartinsights.com\/wp-content\/uploads\/2018\/11\/Screenshot-2020-08-03-at-14.12.08.png\")
<\/p>\nDecline<\/h4>\n
Reaching the end of its life, the product faces fewer competitors. The price may rise and distribution has become selective as some distributors have dropped the product. Promotion aims to remind customers of its existence.<\/p>\n
You can read more about each stage of the Product Life Cycle in our free essential marketing models guide. 1,000s of Smart Insights members are utilising our free resources to improve their skills and knowledge of marketing strategy. Get started today.<\/p>\n
\n\n \n\n <\/a>\n <\/div>\n \nDownload our Free Resource \u2013 Essential marketing models<\/strong><\/p>\n
In our free, illustrated guide to 15 classic planning models diagrams we explain what they are and give examples of why and how to apply them in business.<\/p>\n
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How can I use this marketing model?<\/h3>\n
When reviewing your business you need to understand which stage your products or services have reached across your portfolio of all products which can be assessed in terms of market share and growth using the BCG matrix model<\/a><\/u>. Reviewing the product of portfolio enables marketers to plan for new products, reinvent existing products or discontinue products that are in serious decline.<\/p>\n
You can also relate digital marketing products and services to the popular diffusion of innovation model hype cycles<\/a>.<\/p>\n
An example of the Product Life Cycle model<\/h3>\n
This example shows how the yoghurt product category has moved through the product life cycle by remixing elements of the marketing mix. Examples of stages and how PLC evolved are:<\/p>\n
Introduction<\/strong><\/p>\n
- \n
- Yoghurt available in health food stores<\/li>\n
- Functional and plain packaging<\/li>\n
- Promoted as a health food<\/li>\n<\/ul>\n
Growth<\/strong><\/p>\n
- \n
- Yoghurt available in supermarket chiller cabinets<\/li>\n
- Packaging gets a makeover<\/li>\n
- New flavours introduced (e.g. strawberry and\u00a0vanilla)<\/li>\n<\/ul>\n
Maturity<\/strong><\/p>\n
- \n
- Product re-invented with added fruit\/muesli\/chocolate<\/li>\n
- Packaging changes into different shapes and sizes<\/li>\n
- Promoted as a fun snack or luxury treat<\/li>\n<\/ul>\n
Decline<\/strong><\/p>\n