Product Life Cycle
Spytext will evolve through a Product life cycle and will undergo changes associated with marketing strategy and the marketing mix. The Marketing Strategy will be modified in association with each cycle. A product life cycle can be a fad and reach decline within a few months or remain on the market for centuries however changes must occur in the marketing mix in order to adjust with opportunities and challenges.
The four stages of a product life cycle include development, introduction, growth, maturity and decline. The introduction stage introduces the product with low sales and high advertising costs. The primary goal in this stage is to build demand for the product and establish a market. In the growth stage a company will see revenue growth, sales increase and distribution will be expanded. As competitors enter the market there will be price competition or increased promotional costs in an attempt to convince consumers that the product is better than the competitors. The goal in this stage is to increase sales and gain the preferences of consumers. The most profitable stage is the maturity stage. Sales will continue to rise however at a slower pace. Brand awareness is strong and advertising expenses will be decreased. Competitive products may be similar with difficulty determining the difference between products. The company will try to entice non customers in an attempt to increase usage per customer with sales promotions. The goal in this stage is to maintain a market share and extend product life cycle. In the decline stage sales will decrease, customer tastes change, the product becomes obsolete. There is a chance to maintain profitability longer if it has developed loyalty. The costs per unit will increase due to declining production and no more profit can be made. During this stage there are three possible options; maintain product and reduce costs, harvest the product until no more can be made or discontinue the product to make room for a new