CAPI during the life cycle There are internal and external forces that explain why CAPI behaves differently at different stages of the life cycle. CAPI can weaken for internal reasons. In a family business, this can happen due to a deterioration in relations between

2. Location on the life cycle curve Normal stage of adolescence. Normal - because there is mutual trust and respect between the CAPI group. David and John are both entrepreneurs (E). They needed A. They fired their CEO because

Question 22 Lifestyle concept Answer A huge influence on the behavior of individual buyers is their lifestyle - the result of the manifestation and interaction of a person's value system, his activity, attitudes and consumption patterns and lifestyle -

Question 41 The concept of the product life cycle (LCP) Answer The product life cycle is a sequence of forms of existence of products and processes that regulate their changes. Distinctive features of the life cycle: repeatability of the main stages; certain

Question 22 What stages of the life cycle does an organization go through in its development? Answer The organization as an object consistently goes through certain stages of development and formation. Creation. At this stage, conceptual schemes are built, factors are determined

Chapter 10 Product Strategy Formulation and Marketing at Each Stage of the Product Life Cycle In this chapter, you will find answers to the following questions: 1. What characteristics do goods have and what classifications of goods exist?2. How companies shape their product mix

6. The main phases of the life cycle of the project Content. The main phases of the project life cycle - initiation, development, implementation, completion. The intensity and levels of execution of the project phases - change over time. Project implementation practices - reflect good practice

Leadership Model and Organizational Life Cycle Stages There are periods in the life of an organization when one of the two leadership models will be clearly preferred, and there are periods when it is not so critical. If we recall the Boston Portfolio Matrix and try to correlate

Product life cycle - the period during which the product finds its customers. The period of physical existence does not always coincide with the life cycle. The life cycle of an individual product is characterized by the period of product sales - from the first buyer to the last. For each product, it is individual and in the age of scientific and technical progress is quite limited. However, for most products, the company seeks to extend its life cycle, while using the marketing typology and the specific features of the product and market.

The International Organization for Standardization distinguishes eleven stages of the product life cycle (LCT):

marketing, search and market research;

development of technical requirements, product development;

logistics;

preparation and development of production (i.e. technological) processes;

production;

control, testing and surveys;

packaging and storage;

sales of products;

installation and operation;

technical assistance and maintenance;

disposal after service.

In the early stages of creating a life cycle, a marketer needs to decide for whom the product is intended, for which market segments it is intended, what is the number of possible consumers and what are their requests, both group and personal. However, in the future it is very important to know? what is the typology of marketing for this product. At the same time, it is important to know that marketing is present at certain stages of the life cycle, albeit in an implicit form. So, stage 2 ends with the creation of a prototype. Naturally, it must be evaluated from the standpoint of the consumer, and also, possibly, an advertising campaign should be launched. At the 3rd stage, suppliers of raw materials and components are determined, the cost price and consumer properties of the goods depend on them. Stage 4, at which all technological operations and their sequence in the manufacture of goods are determined, the cost price and consumer properties of the goods are finally formed. The quality of workmanship at the production stage (5th) determines the attractiveness of the product for the consumer. Stage 6 is aimed at eliminating possible defects and taking into account the interests of the consumer as much as possible.

In this case, all elements of the product are important. In particular, demand depends on packaging, packaging is one of the types of advertising - “silent seller”, and therefore marketing at stage 7 is necessary. Sales of products (8th stage), i.e. the conclusion of contracts for the supply and direct movement of goods from the producer to the consumer is impossible without studying and attracting consumers to its side, i.e. without marketing. Installation and operation (stage 9), technical assistance and maintenance (stage 10) should be carried out in the most convenient and timely manner for consumers - otherwise they will go to our competitors. This also applies to disposal (stage 11) after service.

The duration of the life cycle (LC) of a product depends on:

technical complexity of the product: the more complex the product, the greater the life cycle;

the volume of investment in the development of goods and sales and marketing network;

the presence of competitors: the more there are, the more aggressive their policy on the market, the shorter the life cycle of the product;

the quality of marketing research and the degree of their compliance with the interests of individual groups of buyers.

The transition from stage to stage occurs without sharp jumps. Therefore, it is necessary to closely monitor changes in the pace of sale in order to capture the boundaries and adjust the marketing program accordingly. It is especially important to capture the stage of maturity and, even more so, the decline. Keeping a “sick product” on the market is extremely unprofitable, and in terms of prestige it is simply harmful.

The shape of the life cycle curve, the duration of its stages most often depends on the most characteristic consumer properties of the product, in particular, on its technical complexity, the volume of new properties that distinguish it favorably from similar products, the degree of compliance with consumer needs, the number of substitute products and their competitiveness , the level of production costs. The second important factor is the state of the market and the nature of competition in it.

In addition to the classical form of the product life cycle curve, when the stages of product introduction to the market, growth, maturity and decline are clearly defined, examples of its specific modifications can be distinguished. The boom curve describes an extremely popular product that has been selling consistently for a long time. "Continued craze" suggests a rapid increase in product sales, then a rapid decline, but with a residual average level of sales. The seasonal curve, or fashion curve, refers to the life cycle of products that experience periodic ups and downs in demand in the market. The dip curve usually reveals the behavior of a product that has no market success at all.

In relation to such goods, it is customary to distinguish two main stages: a sharp increase in sales in the first stage and an equally sharp decrease in its second. This is due to the fact that the “peak” of fashion usually lasts a long time and ends abruptly. Just as suddenly, demand drops. It is no coincidence that the introduction of trendy products to the market is associated with great commercial risk, and their prices in the first stage are very high in order to recoup the costs and to some extent compensate for the fall in profits in the second stage.

A number of products are characterized by an extended life cycle (renewal or nostalgia curve). In this case, the constant growth in demand is interrupted for a short time by stabilization with a decline, after which its next increase is again observed. The reasons for extending the life cycle can be different: new areas of application of the product, new market segments, price reduction, etc.

The transition from one phase of the cycle to another usually occurs smoothly, without jumps. Because of this, the marketing service must closely monitor the dynamics of sales and profits in order to catch the boundaries of the phases and, therefore, make changes to the marketing program, redistribute marketing efforts, and adjust the structure of the marketing mix. It is especially important to catch the stage of saturation and even more - the decline, since it is unprofitable to keep the “sick product” on the market.

In addition, we also note the following important points.

The duration of the life cycle A as a whole and its individual phases depends both on the product itself and on the specific market. By a common feature, raw materials have a longer life cycle, finished products have a shorter one, and the most technically advanced goods are very short (2-3 years).

The life cycle of the same product, but in different markets, is not the same. In the Russian undemanding market, it is much longer than, for example, in the USA, Japan, Germany with their developed competitive market.

With the help of marketing tools, the life cycle in the target market can be both extended and reduced.

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Life cycle time is the period of existence of a product on the market from the moment of its introduction to the exit from the production program.

ZhCT is a concept that describes the sales of a product, profit, consumers, competitors and marketing strategy from the moment a product enters the market until it is withdrawn from the market.

Types of LC are very different both in duration and in form.

The life cycle, or the curve that describes it in the coordinates "time - profit", can be divided into the stages of implementation, growth, maturity, decline

Methods for prolonging the life cycle and characteristics of each of its stages:

The stage of bringing the product to market. The launch phase begins with the distribution of the product and its entry into the market. The introduction process takes time and sales usually grow slowly during this period. Well-known products such as instant coffee, iced orange juice and powdered coffee creamer had to wait more than one year before they entered a period of rapid growth. Slow growth can be attributed to: 1) delays in expanding capacity, 2) technical problems (removing "hooks"), 3) delays in bringing the product to consumers, especially in establishing proper distribution through various retail outlets, 4) customer reluctance abandon habitual patterns of behavior 7 . In cases of expensive new products, sales growth is also constrained by a number of other factors, such as a small number of buyers who are able to perceive the product and afford it.

At this stage, the company either incurs losses or profits are very small due to insignificant sales and high costs of organizing the distribution of goods and stimulating its sale. Promotion costs are at their highest at this time due to the need for concentrated promotional efforts to: 1) inform potential consumers about a new product that they are not familiar with, 2) encourage them to try the product, and 3) ensure that this product is distributed through retail businesses.

There are few manufacturers at this stage, and they produce only the main variants of the product, since the market is not yet ready to accept its modifications. Firms focus their marketing efforts on consumers who are most prepared to buy, typically high-income groups. Prices at this stage are usually higher.

Growth stage. If the novelty satisfies the interests of the market, sales will begin to grow significantly. Early adopters will continue to buy the item. Ordinary consumers will begin to follow their example, especially if they have heard favorable reviews about the product. New competitors enter the market, attracted by the opening opportunity. They will offer a product with new properties, which will expand the market. The growth in the number of competitors will lead to a sharp increase in sales from factories in order to saturate the distribution channels with goods.

Prices stay the same or drop slightly as demand increases. Promotion spending by firms is stagnant or slightly increased to discourage competition and keep the public informed about the product.

Profits rise at this stage, as the costs of sales promotion are already attributable to a larger volume of sales while reducing production costs. In order to maximize the period of rapid market growth, the firm can use several strategic approaches,

1. Improve the quality of the novelty, give it additional properties, release its new models.

2. Penetrate into new market segments.

3.Use new distribution channels.

5. Reduce prices in a timely manner to attract additional consumers.

A firm that employs these market expansion strategies is likely to strengthen its competitive position.

stage of maturity. At some point, the growth rate of sales of goods will begin to slow down - the stage of maturity will begin. In terms of time, this stage is usually longer than the previous ones and poses complex tasks in the field of marketing management. Most of the products on the market are just at the stage of maturity, and therefore, marketing management mainly deals with "mature" products.

The slowdown in sales growth means that many manufacturers are stockpiling unsold goods. This leads to increased competition. Competitors are increasingly resorting to selling at discounted prices and below list prices. Advertising is growing, the number of preferential deals with trade and consumers is increasing. R&D spending is on the rise to create better versions of the product. All this means lower profits. A number of the weakest competitors begin to drop out of the fight. In the end, only firmly entrenched rivals remain in the industry.

A company must do more than just protect its product. The best defense is an attack. And she needs to constantly look for ways to modify the market, product and marketing mix.

MARKET MODIFICATION. The company seeks to increase the consumption of an existing product. It is looking for new users and new market segments. At the same time, she is looking for ways to stimulate more intensive consumption of the product by existing customers. The company may want to reposition the product so that it appeals to a larger or faster growing market segment.

PRODUCT MODIFICATION. The company may also modify the characteristics of its product, such as quality levels, features or appearance, to attract new users and intensify consumption.

Strategy quality improvement aims to improve the functional characteristics of the product, such as durability, reliability, speed, taste. This approach is effective when: 1) quality can be improved, 2) buyers believe quality improvement claims, and 3) a sufficiently large number of buyers want to improve the quality of the product.

Strategy property improvements aims to give the product new properties that make it more versatile, safer and more convenient. The improvement strategy has been successfully applied by Japanese manufacturers of watches, calculators, copiers, etc.

Strategy exterior design improvements aims to increase the attractiveness of the product. So, to attract buyers who need something new in appearance, automobile firms periodically change the appearance of their models.

MODIFICATION OF THE MARKETING COMPLEX. Among other things, the company should seek to stimulate sales by modifying one or more elements of the marketing mix. To attract new customers and poach the clientele of competitors, you can lower the price. You can try to develop a more effective advertising campaign. You can resort to active methods of sales promotion, such as concluding preferential deals with sellers, issuing coupons that entitle you to a small discount on the price, distributing souvenirs, holding contests. A firm can take advantage of larger market channels, such as active distribution stores, especially if these market channels are experiencing growth. The firm may also offer customers new or improved services.

Recession stage. In the end, the sales of a variety of product or brand will still go down. The decline in sales can be slow or rapid. Sales may drop to zero, or they may drop to a low level and remain at that level for many years. The drop in sales is due to a number of reasons, including advances in technology, changing consumer tastes, and increased competition from domestic and foreign rivals. As sales and profits fall, some firms exit the market. Those who remain can reduce the product offering, eliminate small market segments and the least efficient sales channels, slash incentive allocations, and lower prices even further.

Maintaining a declining product in its product range can be extremely costly for a firm. The product may take up too much of the management's time. In addition, it often requires price adjustments and inventory repricing. Its production costs are high, it requires both advertising and the attention of sellers, and it might be better to direct funds or forces to organize the production of new, more profitable goods. The very fact of the fall of its success can cause bewilderment among consumers in relation to the manufacturing company as a whole. But the most significant troubles may await the firm in the future. Not being discontinued in a timely manner, decrepit goods interfere with the start of an energetic search for replacements. Such products undermine profitable operations today and weaken the firm's position in the future.

The firm should pay more attention to its decrepit products. The first step is to identify products that have entered the decline stage through regular analysis of their sales performance, market share, cost levels and profitability. For each of them, the company's management must decide either to continue its release, or to "reap the benefits", or to exclude it from the nomenclature. The decision to continue issuing a brand may be made in the hope that competitors will leave a particular field of activity. Management may decide it's time to reap the rewards”, i.e. drastically reduce any costs associated with the product (for production equipment, logistics, R&D, advertising, sales staff, etc.) in the hope that sales will still hold out for some time at a fairly decent level. If successful, the reaping strategy will provide the firm with a short-term increase in profits. Management may also decide to remove a product from the range, either by selling it to another firm or by simply discontinuing production.

Product marking. Trademark and its essence. Basic concepts of trademark practice

Brand- this is a name, term, sign, drawing or a combination of them, designed to identify the goods and services of one seller or a group of them and to differentiate them from the goods and services of competitors. Brand attributes: brand names, brand name, trademark, copyright.

brand name¾ part of the brand that can be pronounced, such as "Avon", "Mercedes", "Disneyland", "Rakhat"

Vintage badge (emblem)¾ part of a brand that is recognizable but not pronounceable, such as a symbol, image, distinctive coloration, or specific typography. Examples are the image of a rabbit in the symbolism of the Playboy Corporation or the image of a lion in the symbolism of the MGM studio.

Trademark- a brand or part of it, provided with legal protection. It protects the exclusive rights of the seller to use the brand name or trademark.

Quality- this is the estimated ability of a branded product to perform its functions: durability, maintainability, reliability, accuracy, ease of operation, etc. In marketing, quality is viewed in terms of consumer perceptions.

Branding decisions appear to indicate the product's ownership by the manufacturer.

Recently, there has been a trend towards the elimination of brand names to reduce prices.

The decision of the owner of the brand can have three ways to transfer their product to the market: under the brand of the manufacturer; under the brand of an intermediary selling this product; both under its own and under the brand of an intermediary.

There are four approaches to the brand naming problem:

1. Individual brand name (not associated with the company name).

2. A single brand name for all products.

3. Collective brand name for product families.

4. Trade name of the company in combination with individual brands of goods.

There are several sources for choosing a brand name: abbreviation (IBM, PC, ABC), invented names (Epsson, Butya), numbers (Chanel No. 5, Century - 21), mythological images (Atlant tires), proper names (Ford) , geographical names (paints "Pittsburgh", "Tula samovar"), dictionary names ("San - Bim" - a sunbeam), foreign words (Lux, Foodmaster), combinations of words (shampoo "Head and Shoulders" - head and shoulders) .

There is a multi-brand approach with two or more brands in the same product category. When developing a marketing strategy for specific products, the seller must decide whether he will offer them as branded. Presenting a product as a brand can increase its value, and therefore such a decision is an important aspect of product policy.

The brand name should not be random. It should contribute to strengthening the idea of ​​the product. The brand name should have the following qualities: 1. It should contain a hint of the benefits of the product, such as "Beauty-rest" mattresses (wonderful rest), "Craftsman" hand tools (handyman). 2. It should contain an allusion to the qualities of the product, such as the nature of the action or color, such as Sunkist oranges (carrying the kiss of the sun), Firebird cars (firebird). 3. It should be easy to pronounce, recognize and remember. This is best answered by short names, for example, Tide washing powder, Cross toothpaste. 4. It must be clearly distinguishable from others, such as a Mustang car, Kodak photo products.

Many firms strive to create a unique brand name that will later become associated with the entire product category.

Brand extension strategy ¾ any attempt to use a successful brand name when introducing product modifications or new products to the market.

Trademark missions.

Building brand loyalty means maintaining a strong brand image and maximizing sales.

Maintaining the popularity of existing brands is one of the highest priorities for the company.

Reasons why brands are important:

· identification of products is facilitated, the consumer can order a product by name instead of description (trademark as a kind of replacement for a standard or specification);

a certain level of quality is constantly guaranteed;

It is known which company is responsible for the product;

Reduced price comparisons as consumers become aware of brand differences

Consumers feel they take less risk when they buy a brand they are familiar with and feel good about;

· brand testing facilitates market segmentation and creates a distinctive image;

well-known brands are more attractive to distribution channels;

The brand can be used to sell a whole range of products, such as various Sony cameras;

· A trademark can be used to enter a new product category (to establish a trademark on new products).

The economic development of a product has a complex cyclical nature, as a result of which the problem of the nature, types, and frequency of cyclical fluctuations is important for identifying the external causes of the crisis of specific products. The main goal of managing the life cycle of a particular product is to extend the period of its existence on the market.

PRODUCT LIFE CYCLE (LC)- a process consisting of successively advancing stages of the birth of an idea, the development of a product, the foundation of its production, the growth of market sales, obsolescence, the decline and cessation of production, replacement with a new, more progressive product. Almost all goods produced by people are forced to go through such a cycle for a different time, and the concept of the LCT is based on the fact that any product, no matter how exceptional its properties, is sooner or later forced out of the market by others, more perfect or cheaper.

When we talk about the LCT, we mean the following:

1) the life of the goods is limited;

2) the sales volume of the product includes several stages, each of which is characterized by specific tasks, opportunities and problems;

3) at different stages of the life cycle, the profit that the product brings varies;

4) each stage of the life cycle requires a special approach to the strategy in the field of marketing, finance, production, sales and personnel management.

This concept implies the passage of a number of stages by the product: product development; bringing goods to market; growth; maturity; decline.

Rice. 8.2.1. Graphs of sales volumes and accumulated profits of the life cycle

At the stage of product development, samples of products are created that claim to become novelties based on scientific research, design, construction, technological development and testing. It is generally accepted that the process of creating a new product includes the formation of a concept, the selection of progressive ideas, the development of a concept and its experimental verification, the formation of a marketing strategy for a new product, an analysis of the possibilities of production and marketing of a product, design development, mass production, testing the first batches of goods in market conditions, commercial production.

The stage of bringing the product to the market begins from the moment the product is launched into commercial production, it goes on mass sale. At this stage, the manufacturer does not yet make a profit as a result of the fact that the company's costs continue to increase, which began with the development of the product, the costs are not yet paid off by sales income despite the increase in sales and the ability to sell a new product at a higher price in comparison with obsolete goods.

At the stage of growth, if the new product satisfies the requirements of the market, the object of its sale begins to increase, the demand for the product increases. Due to the increase in sales, production becomes profitable, the mass of profit increases. Gradually, the initial costs of the manufacturer of the goods pay off at the expense of profits.

In the maturity phase, there is a slowdown in the growth rate of sales of goods and by the end of this stage it reaches zero due to saturation of demand and a decrease in buyers' interest in the product with a simultaneous increase in sales revenue until it reaches a maximum and starts to decline. Most often, by this time, the manufacturer of the goods manages to fully recoup the costs with the profit received, but the additional profit becomes less and less.

Decline phase - a period of sharp decline in sales due to a decrease in demand from consumers. As a result of a decrease in sales, profits become smaller, there comes a point when the proceeds from the sale of goods do not compensate for the costs of production and marketing. Production becomes unprofitable, and the time comes for curtailment, cessation of production and sale of goods. The product life cycle ends.

The reasons for the "aging" and "dying" of the product may be the following factors:

Demand potential has been exhausted;

Changes in the structure of demand (changes in the structure of the population, changes in values, falling purchasing power);

Technical progress;

Changing economic conditions.

In this case, the main task of the marketing service is to closely monitor changes in sales and profits in order to capture the boundaries of the stages and, accordingly, make changes to the marketing program. The main marketing actions that must be performed by marketing service managers at various stages of the product life cycle can be illustrated in Table. 8.2.1.

Table 8.2.1 The main characteristics of the stages of the product life cycle and typical marketing activities of the enterprise

The concept of the life cycle can be applied to individual products (trademarks), as well as to entire classes of products. The duration of the life cycle of product classes is significantly higher than individual brands of goods of this class, since an obsolete brand can be replaced by a new brand of goods of the same class.

The concept of the life cycle of goods plays a fundamental role in marketing, since different stages of the life cycle correspond to different marketing strategies and techniques, as a result of which the company's product strategy is constantly changing. Therefore, the product life cycle curve does not always have the same shape. One commonly encountered variation is the "recycle" curve. The second "hump" of sales is caused by sales promotion activities carried out at the stage of product decline. Another variation is the "comb" curve), which consists of a successive series of cycles generated by the discovery of new characteristics of the product, new ways of using it, the emergence of new users.

Rice. 8.2.2. Varieties of LC curves

The concept of the life cycle can be applied to such well-known phenomena as style, fashion or fetish.

Style is the main original form of expression that arises in a particular sphere of human activity. For example, there are styles in clothing (evening, casual) and art (realistic, surreal, abstract). Once created, a style can exist for many generations, either gaining wide popularity or losing it. The style is characterized by a cycle with several periods of increased interest.

Fashion is the most popular or widespread style in a given period of time in a given field of activity. It is very difficult to predict the duration of an individual stage in the fashion cycle.

Fetishes are particular manifestations of fashion that quickly gain everyone's attention, are perceived with great enthusiasm, quickly reach the peak of popularity and very quickly move into the decline stage.

_______________________________________________________________________

Maslova TD Vozhuk ST., Kovalik L.N. Marketing. - St. Petersburg: Peter, 2008. - S. 180.

Stukanova I.P., Nikitina L.A., Dubrovin I.L. Management and marketing. - M.: Colossus, 2007. - S. 144.

Klimin A.I. Marketing: a course of lectures. - M., 2005. - S. 45.

Kolesneva E.P. Commodity policy of the industry enterprise. - Minsk: Information Center of the Ministry of Finance, 2007. - S. 35.

Laptev A., Konev I.P., Silantieva L.P. Strategic and operational marketing. - Petrozavodsk: PetrGU Publishing House, 2006. - P. 77.

Maslova T.D., Bozhuk S.G., Kovalik L.N. Marketing. - St. Petersburg: Peter, 2008. - S. 163-165.

Tutorial output:

Marketing: questions and answers / ed. N.P. Ketova. - Rostov n / a: Phoenix, 2009. - 478 p. - (We pass the exam).