ACHIEVING LARGE SHARE OF MARKET
 

 

 

 

 

 

 

 

 

 

 

 

In the late growth and early maturity stages, the choices lie among various alternatives for achieving a larger share of the existing market. This may involve product improvement, product line extension, finer positioning of the product line, a shift from breadth of offering to in-depth focus, invading the market of a competitor that has invaded one’s own market, or cutting out some of the “frills” associated with the product to appeal better to certain classes of customers. In the maturity stage, market positions have become established and the primary emphasis is on nose-to-nose competition in various segments of the market. This type of close competition may take the form of price competition, minor feature competition, or promotional competition. In the decline stage, the choices are to continue current product/market prspectives as is, to continue selectively, or to divest. Exhibit 10-2 identifies the characteristics, marketing objectives, and marketing strategies of each stage of the S-shaped product life cycle. The characteristics help locate products on the curve. The objectives and strategies indicate what marketing perspective is relevant in each stage.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual choice of strategies rests on the objective set for the product, the nature of the product, and environmental influences operating at the time. For example, in the introductory stage, if a new product is launched without any competition and the firm has spent huge amounts of money on research and development, the firm may pursue a high price/low promotion strategy (i.e., skim the cream off the top of the market). As the product becomes established and enters the growth stage, the price may be cut to bring new segments into the fold—the strategic perspective Texas Instruments used for its calculators. On the other hand, if a product is introduced into a market where there is already a well-established brand, the firm may follow a high price/high promo- tion strategy. Seiko, for example, introduced its digital watch among well-to-do buyers with a high price and heavy promotion without any intention of compet- ing against Texas Instruments head on. Of the four stages, the maturity stage of the life cycle offers the greatest opportunity to shape the duration of a product’s life cycle. These critical ques- tions must be answered: Why have sales tapered off? Has the product approached obsolescence because of a superior substitute or because of a fundamental change in consumer needs?