Product Lifecycle Management

Driving Success through Promotions

Regardless of whether you're introducing a new product to the market or simply want to maintain the market share that you have already gained, promotional activities can play a key role in helping you achieve your goals.

Proactively managing your products throughout their lifetime and applying the appropriate sales and marketing strategies can play a major part in determining their success.


Introduction

Decline

Product
life cycle
management

Growth

Maturity

Introduction

The product is introduced to the market and the key focus at this stage is to create awareness and generate interest from the target audience.

Possible Promotional Activity Reasons
Money Back Guarantee
  • Reinforces confidence in new products
Warranty Programme
  • Provides consumer peace of mind
 
  • Removes risk of purchase
Distribution Channel Loyalty Programme
  • Motivates Distribution Channel to focus sales efforts on new product
Sweepstake/Competition
  • Generates awareness and drives interest in new product
Live Chat/Email-based Customer Service
  • Provides customers with support during product launch stage
 
  • Allows you to gather customer feedback
Trade-In Campaign
  • Rewards customers who trade in own or competing brand products for the new product
 
  • Promotes "Green" image

Growth

At this stage, the market is aware of the new product and sales are steadily rising. This is the time for businesses to invest more money in promotional activities to maximise the growth potential.

Possible Promotional Activity Reasons
Consumer Loyalty Programme
  • Allows you to build and retain relationship with your consumers
Cashback/Rebate Promotion
  • Rewards repeat purchases and drives sales of associated products/accessories
Premium/Gift with Purchase Promotion
  • Adds value to the purchase
 
  • Enhances customer experience
Refer-A-Friend Programme
  • Rewards existing customers for endorsing the product and recommending it to someone else
E-Marketing Campaign/Online Survey
  • Allows you to measure customer satisfaction
 
  • Provides you with valuable feedback on product features, level of customer service, other suggestions, etc.
 
  • Identifies any issues, allowing for corrective actions to be taken

Maturity

At this stage, the product is established and sales grow at a slower rate before finally stabilising. The main goal for businesses is now to maintain the market share they have gained. To remain competitive, many businesses invest more heavily in promotional activities and even product improvements.

Possible Promotional Activity Reasons
Cashback/Rebate Promotion
  • Drives sales whilst maintaining established price points
 
  • Allows you to maintain acquired market share for longer
Consumer Loyalty Programme
  • Further strengthens relationship with existing customers by continuing to reward repeat purchases
 
  • Allows you to send targeted campaigns in an effort to drive sales and encourage interest in associated products/accessories

Decline

At this stage, the market shrinks and product sales decline. This could be due to the market becoming saturated or because consumers are switching to a different type of product. While this may be inevitable, there are still a number of promotional activities that businesses can undertake to encourage further sales and engage with new audiences.

Possible Promotional Activity Reasons
Cashback/Rebate Promotion
  • Drives sales whilst maintaining established price points
Consumer Loyalty Programme
  • Allows you to maintain relationship with existing consumers by continuing to reward purchases
 
  • Provides you with the opportunity to drive sales of new and/or associated products
Premium/Gift with Purchase Promotion
  • Shifts excess inventory, including product accessories
Distribution Channel Loyalty Programme
  • Motivates Distribution Channel to focus sales efforts on product
Sweepstake/Competition
  • Maintains awareness and drives interest in product during final stage of life cycle