We can see there is too much product in the market which make consumer have many choices. With great technology growth in this era of globalisation people become pickier on technology system and they are very alert with updated system and application in order to have the latest version. Many product had go troughs many challenge to stay compete in the market and had experience many kind of hard path in their journey. Hence, there are many product cannot survive to compete with other brand or product in the market due to many phase of problem in business. To understand more about product that cannot survive in the market we should look to product life cycle of those products.
Product life cycle (PLC) describes the life of a product with respect to business/commercial costs and sales measures. It’s management makes the following three assumptions which is products have a limited life and thus every product has a life cycle, product sales pass through distinct stages, each posing different challenges, opportunities, and problems to the seller and products require different marketing, financing, manufacturing, purchasing, and human resource strategies in each life cycle stage.
When we want to identify the market positioning strategy of product life cycle, we also need to understand the use of marketing mix in every stage of the life cycle. The use of a marketing mix is an excellent way to help ensure that putting the right product in the right place. The marketing mix is a crucial tool to help understand what the product or service can offer and how to plan for a successful product offering. The marketing mix is most commonly executed through the 4 P’s of marketing which is price, product, promotion, and place. By using marketing plan we will be more focus to identify demographics of the target customers, market positioning and pricing, the plan for product distribution and special offers or incentives.
In this investigation of item life cycle base on 4 Ps promoting blend these four factors help the firm in settling on key choices vital for the smooth running of any item. I look toward on Apple Inc. item which had experience four phase of item life cycle. Apple Inc. is an American multinational innovation organization headquartered in Cupertino, California, that plans, creates, and offers shopper hardware, PC programming, and online administrations. iPod were first acquainted with in 2001 and has since developed into a perceived social image. iPod is a line of compact and advanced music players, iPods can fill in as outer information stockpiling gadgets.
Mac’s iTunes programming can be utilized to exchange music, photographs, recordings, diversions, contact data, email settings, Web bookmarks, and logbooks, to the gadgets supporting these highlights from PCs utilizing certain adaptations of Apple Macintosh and Microsoft Windows working frameworks. Clients can convey their whole music gathering and more in their pockets. In spite of the fact that Apple Computer as of now had an immense after of faithful costumers, the iPod has made another age of Apple aficionados that basically can’t get enough of the iPod and the majority of the iPod connections that have since created.
Firstly, we will understand the first stage in the product life cycle which is introduction stage. This introduction stage is characterized by a low growth rate of sales as the product is newly launched and consumers may not know much about it. Base on my observation, new comer in industry usually incurs losses rather than profits during this phase. Especially if the product is new on the market, users may not be aware of its true potential, necessitating widespread information and advertising campaigns through various media.
Moreover, the firm seeks to build product awareness and develop a marketing plan for the product. Bill Jobs announced it as a Mac-compatible product with a 5 GB hard drive that put ‘1,000 songs in your pocket. This announce attract the customer and future buyers attention to waiting and wonder about the new product from Apple In. Product branding and quality level is established, and intellectual property protection such as patents and trademarks are obtained. Apple Inc. researched the trademark and found that it was already in use. Joseph N. Grasso of New Jersey had originally listed an ‘iPod’ trademark with the U.S. Patent and Trademark Office (USPTO) in July 2000 for Internet kiosks. The first iPod kiosks had been demonstrated to the public in New Jersey in March 1998, and commercial use began in January 2000, but had apparently been discontinued by 2001. The trademark was registered by the USPTO in November 2003, and Grasso assigned it to Apple Computer, Inc. in 2005.
At the point of pricing, it may be low penetration pricing to build market share rapidly, or high skim pricing to recover development costs. The iTunes Store is an online media store run by Apple and accessed through iTunes. Customers have to purchase audio files used the AAC format with added encryption, based on the Fair Play DRM system. Up to five authorized computers and an unlimited number of iPods could play the files. Burning the files with iTunes as an audio CD, then re-importing would create music files without the DRM. The DRM could also be removed using third-party software. However, in a deal with Apple, EMI began selling DRM-free, higher-quality songs on the iTunes Stores, in a category called ‘iTunes Plus.
Next, promotion at this point we look forward to aim at innovators and early adopters. To build product awareness and to educate potential consumers about the product it mostly come from marketing communications strategy. Apple had used a variety of advertising campaigns to promote its iPod portable digital media player. Apple had invest a lot for iPod promotion campaigns include television commercials, print ads, posters in public places, and wrap advertising campaigns. These advertising techniques are from the experience of advertising Apple’s other ads before these and it succeed for iPod. The very first advertisement for iPod, are compatible with Macs featured a man in his room grooving to his digital music collection on his Apple iBook.
In scope of distribution or placing in introduction stage is selective until consumers show acceptance of the product brand. Apple is a well-known brand in United State their brand already has good image and one of trustful brand. When Apple introduce iPod they already have idea where to place their product and acknowledge their target market. Plus, informative television advertising was used to demonstrate the product’s usage and emphasise the benefit of listening to music.
Secondly, we move forward to see the growth of iPod life cycle, growth stage is the period which the product had been acceptance among consumers and people are aware with their new product, the industry and general public also notice with their new technology in the market. During this stage, the innovation becomes accepted in the market, and as a result sales and revenues start to increase. Hence, profits begin to be generated, though the break-even point is likely to remain unreached for a significant time even until the next stage, depending on the cost and revenue structures.
Furthermore, Apple Inc. needs to build their brand preference and increase market share. The beginning of distribution is expanded further when their demand has starts to rise little by little and people trust their product and brand. Promotion is increased beyond the initially high levels, and word-of mouth advertising really helpful in the promotion strategy which gives big potential customers hearing about the product. People are become more confidence with this product and that attract customer to give a try on this product plus Apple Inc. make their customer love their product and choose to use the product regularly. Hence, their loyal customer become increasing from time to time.
In view of product, Apple Inc. had come out with new product which is more interesting and provided with latest technology. iPod usefulness has been overshadowed by iPhones and iPads . The price of iPod is affordable but customers just need to add on a little bit and they can have a better technology and latest product with more great features. So for sure customer will choose to have iPhone or iPad rather than iPod.
Next, when look to the product placing, Apple is an international brand so their product placing very huge but they introduce new product which is more useful and complete so people will choose the better on. And for promotion, Apple had slow down the promotion and campaign on iPod and put more attention to iPhone. This will make their advertising cost more save and transfer it to other product promotion which can gain more profit and strengthen their brand in industry.
In a nutshell, from my observation the use of marketing mix in develop market positioning is really useful because from that we can see what should be done at every stage of product life cycle. Besides that, Apple Inc. had took the best action towards iPod when they agree to came out with new product. Their step had save them from need to face product failure or lower down their brand in technology industry plus now their brand is one of the trusted brand on become one of top brand in worldwide.
