White Paper
Best Practices and Emerging Marketing Trends
Marketing & the
Product Life Cycle
“If I had asked people what they wanted, they
would have said faster horses.” - Henry Ford
www.burstmarketing.net
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518-465-0659
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297 River St., Troy, NY 12180
You’ve created something remarkable. It’s something that redefines the industry,
something that makes a difference. The hard part is over. Put it on the shelves because
it’s sure to sell, sell, sell. The marketing will take care of itself! Flash forward a handful of
months or years and the product sits idle on the shelves, the design or function outdated,
and money has been lost. The life of the product has been cut short — assuming it existed
in the first place.
The false start described above is avoidable — simply by crafting strategies and executing
tactics reflective of a product’s position in the product life cycle. The product life cycle
consists of four stages that pinpoint the product as it moves through the industry and
includes: introduction, growth, maturity and decline.
Rather than talking in platitudes and abstractions, the best way to describe the product life
cycle is to connect each step to a product and a brand that’s ubiquitous. Few companies
are on par with Apple — whose iPod serves to define every industry it touches. Although
cutting edge, Apple has largely employed a kind of textbook marketing strategy, embracing
its position within the product life cycle at every interval.
Whether you are selling widgets, valves or motor parts, structuring a marketing plan
according to the stages of the product life cycle can promote the best use of your
marketing dollars.
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www.burstmarketing.net
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518-465-0659
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297 River St., Troy, NY 12180
Phase 1: Introduction
Introducing a product to market requires planning, strategy and careful execution. The
objective when introducing a brand new product is to first define why that product is
desirable. The product needs to have the ‘it’ factor, promoting a potential user’s intrinsic
and unquenchable need to get their hands on your product.
The audience at the outset may be small and many are likely existing customers. As a
result, you will want to brand the product in terms that resonate with that audience. In
Apple’s case, they first aimed to appeal to their existing customers who were mostly
design savvy, fringe small businesses owners and educators. A commercial and print
campaign featured silhouettes of iPod listeners dancing to the beat of their own drum.
Beyond that, Apple CEO Steve Jobs contributed to this “renegade, non-conformist image”
through press detailing his demanding aesthetic.
A note about reaching the early adopters
Early adopters are those customers who desire the latest and best your industry has to
offer. They may be among your current clients, they may not be. Early adopters convert to
the product and depending on their experience, can become ambassadors—sharing their
experience and influence to drive interest among others.
In 2001, when the iPod debuted it was marketed as “1,000 songs in your pocket.” At the
time, it was only compatible with Apple Computers, which controlled a fraction of the
personal computer market. Early adopters who were already using Apple products were
the first to use, test and advocate for the device, setting the stage for growth in the future
(when the device and software were Windows compatible).
Tactical Priorities
From a tactical standpoint, the introductory phase takes advantage of mechanisms
designed to reach early adopters. Most of these tactics are designed with current
customers in mind—but can be applied across the market regardless of patronage status.
1.The first look: Distributing an e-mail, mailing a pamphlet and creating a landing page
specific to that product line can start to pique the interest of current customers.
2.Seminar or training session: If your customers are located within a reasonable distance
of your facility, plan a training day. Invite current customers to get a first look and
a brief how-to of the new product. This can be invaluable not only for establishing
yourself as an authority and an innovator, but may open up more sales or service
opportunities.
3. If you’re hosting a seminar or a training session, it needs to be a full house. E-mail
marketing, details on your website and even mailed invitations and follow-up calls can
help ensure that there aren’t any empty seats. The last thing you want is for customers
who do attend to question their decision because they’re the only ones in the room.
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www.burstmarketing.net
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518-465-0659
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297 River St., Troy, NY 12180
Phase 2: Growth
Growing a product is all about increasing market share—it’s about the big wins.
Strategically, the growth phase can be characterized by pushing into new markets (new
territories and geographies, new product features and new distribution channels).
WWSJD (What Would Steve Jobs Do?)
The iPod grew exponentially from 2001-2010, selling over 275 million devices by
September 2010. Updated products like the iPod mini, iPod nano and iPod touch went on
to dominate the industry as the best selling music players and portable game players. The
tactics were simple — captivating advertising and online and retail user experiences that
were unmatched.
Tactical Priorities
Tactically, the growth phase typically includes a deluge of inbound and outbound
marketing. It starts with your website — the ideal forum for establishing yourself as
a thought leader. According to Forbes, “A thought leader is an individual or firm that
prospects, clients, referral sources, intermediaries and even competitors recognize as one
of the foremost authorities in selected areas of specialization, resulting in its being the
go-to individual or organization for said expertise” (Moorman, 2012). Thought leadership is
generally established over time and can be promoted by way of strategic communications
and networking. Webinars, white papers, organized online chats — all of these provide
optimal venues for disseminating not only valuable information, but furnish an opportunity
to define yourself as an authority in the field.
Interested in learning about some of the digital tactics that are central to the growth
phase? Check out The Anatomy of Website Best Practices 1 & 2!
Phase 3: Maturity
The iPod was a success. The kind of success that redefines the entire industry. The
challenge for Apple was and still is to continue to stay relevant.
Once a product has been on the market for long enough it enters the maturity stage. Sales
growth may slow — perhaps due in part to a deluge of similar products in the market or
exhausting current customers. Strategy during the maturity phase should be to renew
focus on key differentiators—if the market is familiar with the product and other similar
products on the market, it’s time to redefine the product within that context.
No campaign has been more successful than Apple’s “I’m a Mac” campaign. Rather
than sell Apple products to certain consumers, these ads featured Justin Long as the hip
embodiment of Mac users and John Hodgman as the stiff personification of PC folk and
aimed to sell everyone on a Mac way of life.
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www.burstmarketing.net
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518-465-0659
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297 River St., Troy, NY 12180
Apple served not only to define its products among others in the industry, it defined its
users among humanity. It was a hugely successful campaign that had an impact on every
product line in Mac’s arsenal.
Tactical Priorities
Theories suggest that the right mix of defensive- and offensive-marketing tactics during
the maturity phase can help the product last for decades. According to Inc. Magazine,
“defensive strategies consist of special sales, promotions, cosmetic product changes, and
other means of shoring up market share. It can also mean quite literally defending the
quality and integrity of your product versus your competition. Marketing offensively means
looking beyond current markets and attempting to gain brand new-buyers” (Product Life
Cycle, n.d.).
Phase 4: Decline
Once product sales start to descend, the resolution isn’t to write off the product and jump
to the next opportunity. A decline in sales may be the catalyst for innovation. Update the
design, update the functionality, change the complete look and feel of the product. Apart
from changing the product itself, the decline phase may be an opportunity to change the
position of the product in your lineup. In some cases, the decline of one product can help
launch the conversion of the customers to other products.
Keeping in mind that the iPod is still a multi-billion-dollar business generating about a
billion dollars per quarter, its functionality was largely replaced with the introduction of the
iPhone. The iPod arguably receives Apple’s lowest volume of fanfare. Tech and design trend
followers and setters aren’t tuning in to the Mac World conference for the launch of a $50$200 piece of equipment. More importantly, the iPhone and the iPad can play music…so
why does Apple continue to pour resources into music-exclusive devices?
The iPod is a gateway device. While Mac owners had once been the early adopters of the
iPod, the iPod is now the device that serves to convert PC owners to Mac buyers. You start
with a small financial commitment that allows buyers to experience the product, develop
a familiarity with its nuances and form an opinion. More often than not, consumers will
use that first experience as a jumping off point for future purchases. It’s not unlikely that a
$50 music player will result in thousands of dollars on more advanced tech down the road.
Products don’t live in silos — your business, your brand and catalogue of product offerings
can keep consumers hooked and your products selling regardless of their stage in the
lifecycle.
When you have a product that people jump on board with, the work isn’t done. Take
feedback into consideration and keep innovating—it’s the best possible way to keep
consumers from jumping ship onto the next big thing.
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www.burstmarketing.net
|
518-465-0659
|
297 River St., Troy, NY 12180
Your Product’s Life Cycle
The life of your product may be totally different than Apple’s iPod, but the lessons ring
true. Creating a marketing strategy for a product based on the intervals of the product life
cycle — the introduction, growth, maturity and decline — can promote long term growth
where even the decline phase promotes company-wide sustainability.
Marketing the product life cycle can be daunting, especially if you’re an insider. If it’s your
bulkhead, micro-chip, precision switch, or digital music player it may even be challenging
to pinpoint where it sits in the life cycle, let alone identify the best suited tactics. Inviting a
marketing partner to advise on the strategy — even where an internal marketing team exists
—can be invaluable in maximizing the effectiveness of the marketing mix at every interval.
1.Moorman, C. (2012, July 7). Why Apple Is a Great Marketer. Retrieved August 25, 2014, from Forbes website:
http://www.forbes.com/sites/christinemoorman/2012/07/10/why-apple-is-a-great-marketer/
2.
Mp3 player 7Apple Press Info [Fact sheet]. (n.d.). Retrieved August 25, 2014, from Apple.com website:
https://www.apple.com/pr/products/ipodhistory/
3.Jaffe, E. (2014, February 26). How Apple’s Famous “I’m A Mac” Ads Branded Fanboys For Life. Retrieved August 25, 2014, from
EVIDENCE website: http://www.fastcodesign.com/3026521/evidence/apples-famous-ads-created-an-im-a-mac-effect
4.Product Life Cycle. (n.d.). Retrieved August 25, 2014, from Inc. website:
http://www.inc.com/encyclopedia/product-life-cycle.html
5.Staff, T. W. (2012, October 11). 4 reasons Apple still makes iPods. Retrieved August 25, 2014, from The Week website:
http://theweek.com/article/index/234718/4-reasons-apple-still-makes-ipods
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