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The volumes and duration of production of a particular product change cyclically over time. This phenomenon is called the product life cycle.

The life cycle of a product is the period of existence of a product on the market, the period of time from the concept of a product to its removal from production and sale.

The product life cycle concept describes a product's sales, profits, competitors, and marketing strategy from the moment a product enters the market until it is withdrawn from the market. It was first published by Theodore Levitt in 1965. The concept proceeds from the fact that any product is sooner or later forced out of the market by another, more perfect or cheaper product. There is no permanent product!

The concept of product life cycle applies to both product classes (TVs) and subclasses (color TVs) and even to a specific model or brand (Electronics color TVs). (Although many economists talk primarily about the life cycle of only a product, almost denying the existence of a life cycle for classes and subclasses of goods.) The specific product model follows the traditional product life cycle more clearly.

The life cycle of a product can be represented as a certain sequence of stages of its existence on the market, which has certain limits. The dynamics of the life of a product shows the volume of sales at each specific time of the existence of demand for it.

The life cycles of goods are very diverse, but it is almost always possible to distinguish the main phases. In the classical product life cycle, five stages or phases can be distinguished:

Introduction or entry into the market. This is the phase in which a new product enters the market. Sometimes in the form of test sales. It starts from the moment the product is distributed and it goes on sale. At this stage, the product is still new. The technology is not well developed yet. The manufacturer has not decided on the choice of production process. There are no product modifications. Prices for goods are usually slightly increased. The volume of sales is very small and increases slowly. Distribution networks are cautious in relation to the product. The growth rate of sales is also low, trade is often unprofitable, and competition is limited. Only substitute products can compete in this phase. The goal of all marketing activities is to create a market for a new product. The firm incurs large costs, since production costs are high in this phase, and sales promotion costs are usually at their highest level. Consumers here are innovators who are willing to take risks in trying out new products. There is a very high degree of uncertainty in this phase. Moreover: the more revolutionary the innovation, the higher the uncertainty.

growth phase. If the product is required in the market, then sales will begin to grow significantly. At this stage, there is usually an acceptance of the goods by buyers and a rapid increase in demand for it. Market coverage is increasing. New product information is passed on to new customers. The number of product modifications is increasing. Competing firms pay attention to this product and offer their own similar ones. Profits are quite high as the market acquires a significant number of products and competition is very limited. Through intensive sales promotion activities, the market capacity is greatly increased. Prices are slightly reduced as the manufacturer produces a large volume of products with proven technology. Marketing expenses are allocated to the increased volume of production. Consumers at this stage are people who recognize novelty. The number of repeated and repeated purchases is growing.

Maturity phase. It is characterized by the fact that the majority of buyers have already purchased the goods. Sales growth is falling. The product goes into the category of traditional. There are a large number of modifications and new brands. The quality of the goods and the smoothness of production are increasing. The service is being improved. Achieve maximum sales volume. The company's profit is decreasing. Profit grows slowly. There are stocks of goods in the warehouse, competition intensifies. Price competition. Sales at reduced prices. Weak competitors leave the market. Sales promotion activities achieve maximum efficiency. The consumers here are slowly recognizing people and conservatives. This stage is the longest in time.

saturation phase. Sales growth stops. The price is greatly reduced. But, despite the price reduction and the use of other measures to influence buyers, sales growth stops. The market coverage is very high. Companies seek to increase their sector in the market. The sales network is also no longer growing. The technology is one. At this stage, there is a high probability of repeated technological improvement of the product and technology. Often this stage is combined with the stage of maturity for the reason that there is no clear distinction between them.

5. Recession. A recession is a period of sharp decline in sales and profits. Sales may drop to zero or remain at a very low level. The main reason: the emergence of a new, better product or a change in consumer preferences. Many firms are leaving the market. Sales promotion allocations are reduced or completely eliminated. Consumers lose interest in the product, and their number is reduced. The bulk of consumers are conservatives with low solvency. At this stage, it is advisable to remove the product from production in order to avoid large financial losses. The first task of the company is to identify products that have entered the decline stage through regular analysis of sales trends, market share, costs and profits. Management then has to decide for each declining product whether to support it, "reap the last harvest," or give it up. In this regard, the choice of strategy by the method of the Boston Consulting Group (BCG) is very clear, which classifies all products according to the growth/market share matrix. The vertical axis, the pace of the market, determines the measure of market attractiveness. The horizontal axis, relative market share, determines the strength of the product's position in the market. When dividing the growth/market share matrix into sectors, four types of products can be distinguished:

"Stars". Rapidly growing lines of business (products in the growth phase of the life cycle) with a large market share. They usually require heavy investment to sustain their rapid growth. Over time, their growth slows down and they turn into "cash cows".

"Cash Cows". Lines of business or products with low growth rates and a large market share (products that have reached the maturity phase). These sustainable and successful products require less investment to maintain their market share. At the same time, they bring high income, which the company can use to support other areas that require investment.

"Dark horses" - products that are in the initial phase of the life cycle. They promise high growth rates but have a small market share. So managers try to gain market share through offensive strategies and large investments. Support for these products is needed because the future needs products that bring more profit. It should be borne in mind that these areas of activity often require much more financial costs than they bring profits. They require a lot of funds even to maintain their market share, let alone increase it. Management should carefully consider which "dark horses" should try to turn into "stars", and which ones should be phased out.

"Dogs" refers to the phase of saturation and degeneration. They do not have a large market share or high growth rates. They may generate enough income to support themselves, but do not promise to become more serious sources of income. As long as they bring profit, it is recommended to invest it in "dark horses" or "stars". If there is a danger that these goods will fall into the loss zone, they should be removed from production.

After classifying its products, the company must determine the role of each element in the future. For each product, one of four strategies can be applied. A company may increase investment in a product in order to win market share for it. Or it may invest just enough to maintain its current market share. It can drain resources from a commodity by withdrawing its short-term monetary resources for a certain period of time, regardless of the long-term consequences. Finally, it can deinvest in a destination by selling it or going into a phase-out and use the resources elsewhere.

The advantages of this model: the possibility of mental structuring and visual representation of the strategic problems of the enterprise; suitability for generating strategies, and management, which is mainly engaged in current affairs, is forced to pay attention to the future of the enterprise; ease of use; market share and growth rates are usually determined at low cost.

Disadvantages: the significance of the elements is determined by only two criteria. Other factors such as quality, marketing costs and investment intensity are left unaddressed. Using a matrix of four fields, it is impossible to accurately evaluate products that are in the middle position, and in practice this is exactly what is required most often.

There are two main strategies for a product that is in decline.

The "harvest" strategy involves cutting marketing costs to near zero and continuing to sell the brand by inertia, relying on purchases from committed buyers. Such a strategy can make a brand profitable even with reduced sales, but the “harvest” for some brands continues for many years. Lever Brothers continued to "harvest the Lux Beauty Bar soap after its advertising ceased in 1970. "Lux", as a rule, is available for sale, entering the distribution network along with other toilet articles produced by "Lever". Without advertising, Lux's profit margin is 5% higher than most other soaps. This situation will not continue indefinitely, as the brand's customer base is literally dying out. As soon as the brand begins to make a loss, it will be withdrawn from sale. The risk associated with the "harvest" strategy is that the company can start reducing marketing spending too early, thereby accelerating the brand's decline.

Brand revival. A brand revival strategy means bringing back to life a popular brand that has been harvested or discontinued. According to managers, it is much cheaper to revive a brand than to create a new one. Although the revived brand has no competitive advantage other than its name, this single advantage can be important in a mature market where few brands are uniquely positioned. For example, Beecham is resurrecting Geritol, a dietary supplement for older consumers containing iron and vitamins, by advertising it as “a brand for middle-aged people in love. Management may also choose to maintain their brand without changing it, in the hope that competitors will leave the industry. For example, Procter & Gamble made good profits by continuing to make liquid soap, while other manufacturers decided to stop making it.

In the event of termination of the production of goods, the company can sell it to another company or simply get rid of it by selling the property at the price of a possible sale. If the company is going to find a buyer, then it should not squeeze the last juices out of the product.

The transition from stage to stage occurs without sharp jumps. The duration of the cycle and its individual phases depends on the product itself and the specific market. The life cycle is also affected by external factors such as the overall economy, inflation rate, consumer lifestyle, etc.

However, the general modern trend is to reduce its continuations, acceleration due to manufactured products.

The product life cycle can be divided into several main stages:

• It is characterized by a very high degree of uncertainty of results, since it is difficult to determine in advance whether a new product will be successful.
• The marketing efforts of the enterprise are aimed at informing consumers and intermediaries about.
• At this stage, the enterprise has high costs for, as well as high due to the small volume of output.
• not at this stage.

• It is characterized by the rapid development of sales.
• If the product turned out to be successful and moved into the growth phase, the manufacturer begins to decrease in goods due to an increase in output and sale prices.
• Prices may go down, which may allow the enterprise to gradually capture the entire potential market.
• Marketing costs continue to be high.
• At this stage, the company, as a rule, has competitors.

• Demand reaches its maximum.
• The market at this stage is highly segmented, enterprises are trying to satisfy all possible needs. It is at this stage that the likelihood of repeated technological improvement or modification of the product is most effective.
• The main task of the enterprise at this stage is to maintain, and, if possible, expand its market share and achieve a stable position over direct competitors.

• Manifested in a decrease in demand.
• As sales and profit prospects decline, some firms are cutting back on their investments and exiting the market. Other firms, on the contrary, try to specialize in the residual market if it is of economic interest or if the decline occurs gradually. However, with the exception of the sometimes observed cases of market revival, the cessation of the production of technologically obsolete goods becomes inevitable.

Product life cycle

Each product lives on the market for a certain time. Sooner or later it is superseded by another, more perfect one. In this regard, the concept of the product life cycle is introduced (Fig. 9.3).

Product life cycle- the time from the initial appearance of the product on the market to the termination of its sale in this market. (Not to be confused with the production life cycle, which includes R&D, production, production itself, operation and retirement.) The life cycle is described by the change in sales and profit indicators over time and consists of the following stages: start of sales (introduction to the market) , growth, maturity (saturation) and decline.

Stage of introduction to the market is characterized by a slight increase in sales and may be unprofitable due to high initial marketing costs, small volumes of product output and the lack of development of its production.

Sales growth stage characterized by rapid growth in sales volume driven by consumer acceptance of the product, profitability is rising, the relative share of marketing spend tends to fall, and prices remain constant or fall slightly.

On the stages of maturity sales growth slows and even starts to fall, as the product is already purchased by most potential customers, competition intensifies, marketing costs usually increase, prices may decrease, profits stabilize or decline. When upgrading the product and / or market segments, this stage may be extended.

recession manifested in a sharp decline in sales and profits. Product upgrades, price cuts, and increased marketing costs can only prolong this stage. It should be noted that the maximum profit, as a rule, in comparison with the maximum sales volume, shifts towards the initial stages of the life cycle. This is due to the increased cost of maintaining sales in the later stages of the product life cycle.

The concept of the life cycle is applicable to the product class (telephone), product type (radio telephone), to a specific brand of product (radio telephone of a specific company). The greatest practical interest is the study of the life cycle of a particular brand of product. This concept is also applicable to such phenomena as style (clothing, furniture, art, etc.) and fashion. Different marketing strategies are used at different stages of the life cycle.

Shape of the life cycle curve, as a rule, remains more or less the same for most products. It means that the product once appears on the market, if it appealed to consumers, then its sales volume grows and then falls. However, the length of time and the intensity of the transition from one stage to another differ greatly depending on the specifics of the product and the market. The transition from stage to stage is quite smooth, so the marketing function must closely monitor changes in sales and profits in order to capture the boundaries of the stages and adjust the marketing program accordingly.

It is especially important to catch the stage of saturation, and even more so - the decline, since keeping a product that has exhausted itself on the market is unprofitable, and in terms of prestige it is simply harmful. Obviously, you also need to choose the right moment to enter the market with some new product.

If a similar product is already falling, it is hardly worth starting a commercial activity in the market. Obviously, when it is determined that a product is at the stage of maturity or saturation, then efforts must be made to develop a new product that replaces the product that has exhausted itself.

Other options for life cycle curves are also possible (Fig. 9.4).

Despite the popularity of product life cycle theory, there is no evidence to support that most products go through a typical 4-phase cycle and have standard life cycle curves. There is also no evidence that the turning points of the various phases of the life cycle are more or less predictable. In addition, depending on the level of aggregation at which the product is considered, different types of life cycle curves can be considered.

The first thing to remember is that market research does not start with the product, but with the needs of the consumer. For example, consumers feel the need for transportation (Figure 9.5). Such needs may remain constant, grow from century to century, and may never reach a declining phase.

The need for transport is specified in the demand for certain technological ways to satisfy it (from primitive vehicles, from a carriage with horses to a car and other modern vehicles).

The life cycle of technological methods, although shorter than needs, can be extremely long.

Technological methods can be implemented using various specific technical and technological solutions. For example, cars can use steam, piston, turbine, electric engines, which also have their own life cycle. Radio transmitting devices successively used vacuum tubes, semiconductors, integrated circuits. Under each such curve is hidden a series of life cycle curves for individual technical and technological innovations. These life cycle curves can be very short and no doubt they tend to be shorter.

The nature of the life cycle curve is often the result of more management actions and is not driven by external causes. Many executives believe that every product inevitably follows its own life cycle curve. When sales volume stabilizes, instead of updating technology, looking for new market opportunities, executives categorize the product as "cash cows" and start looking for other business.

In addition, the focus is on consumer demand, rather than focusing on product sales. The concept of the life cycle has a product rather than a marketing orientation. The product of a particular organization will "die" when needs change, if a competitor makes a better offer, if new technologies allow you to offer something new to consumers. Therefore, it is better to focus your efforts on identifying the causes of change, rather than studying their consequences using a life cycle curve.

Identification of the causes of changes will make it possible to foresee future changes and develop a commodity policy that is maximally adapted to them.

When developing and implementing, it must be taken into account that the same product in different markets may be at different stages of the life cycle.

In practice, most companies trade several products in different markets. In this case, the concept is used product portfolio", which is understood as a set of products manufactured by the company. The product portfolio must be balanced and include products at different stages of the life cycle, which ensures the continuity of the organization's production and marketing activities, constant profit, reduces the risk of not receiving the expected amount of profit from the sale of products, in the early stages of the life cycle.

The life cycle of a product is the time the product exists on the market, that is, the time interval from the beginning to the end of its release and sale in its original form.

Product life cycle theory is a concept that describes the sales of products, profits and marketing strategy from the moment a product is developed to its removal from the market.

As a rule, the product life cycle includes 5 stages (stages): 1. Research and development.

• 2. Implementation (bringing to the market).
• 3. Growth.
• 4. Maturity.
• 5. Recession (decline)

Figure 2. Development stages and product life cycle

Figure 3. Demand curve

1.R&D stage. There are two fundamentally different, but equally important sources of ideas for new products. The first one (accounting for approximately 75% of new ideas) is market demands (the presence of “hidden demand”), forcing us to look for technical ways to satisfy them. The second is the logic of scientific and technological progress, the logic of the development of fundamental science: approximately 25% of new ideas are associated with fundamental research and discoveries, during which sometimes ideas arise that are simply unforeseen by consumers (for example, this is how nuclear energy and nuclear weapons, laser technology arose).

In addition to the two main sources, other sources are also possible. Problems that have arisen within the firm can push to the emergence of a new idea; but, as a rule, such ideas are not of a material-commodity, but of an organizational nature and do not go beyond the boundaries of the company. A simple coincidence is not ruled out.

Full product development includes:

• 1) fundamental scientific research;
• 2) applied scientific research;
• 3) design development;
• 4) design developments;
• 5) pilot production;
• 6) economic and marketing research.

These components can be considered as stages of development; while the first and second stages are often combined with the concept of "research development", and the third-fifth - "experimental development". The last, sixth stage, strictly speaking, is not such, since in time this activity is carried out simultaneously with others.

All these stages of development go through, first of all, goods, the idea of ​​which is distinguished by a high degree of radicalism; such ideas usually arise within fundamental science.

Since basic research is not in market demand, basic science usually needs government funding. In addition, in a market economy, there are two more sources of funding for fundamental science:

• 1) private sponsors, patrons, charitable foundations:
• 2) self-financing of non-profit organizations, primarily universities.

The development stage is not always represented by all its stages. Most of the new ideas are not characterized by high radical novelty, therefore fundamental research is not required for their development, and sometimes applied research is not required either.

Development stage. The life of a product begins long before its birth as a product - in ideas, plans, developments. The role of marketing at this stage is to accompany the process of creating a product from an idea to its implementation in a product. To do this, with the help of marketing, it is studied whether the consumer needs this product, what is the potential consumer, what market can be counted on when implementing the plan? If the answer is favorable, then they begin to translate the idea into a draft design. For an enterprise, this stage of creating a product is only a cost and possible future income. The task of marketing is also to explain to potential consumers what benefits a new idea can bring to them, embodied in the product being created.

Stage characteristics:

The birth of the idea of ​​a new product (service), marketing research (forecasting demand for a product), applied research (checking the concept of a new product for technical feasibility), design, market testing (trial marketing). The goal of the firm is to test the concept of a new product for commercial feasibility.

• Marketing tasks at the stage:
  • 1. Complex marketing researches of the market;
  • 2. Analysis of potential demand;
  • 3. Sales volume planning;
  • 4. Evaluation of the production and technological capabilities of the company; 5. Forecasting the consumer's reaction to the product.

Priority of the elements of the concept of marketing at the stage

• 1. Quality
• 2. Advertising
• 3. Price
• 4. Service

Primary types of consumers

There is a definition of consumer opportunities with the help of marketing research, the choice of the target market segment, its segmentation, the definition of the base segment.

2. Stage of implementation. The product starts to go on sale. For the enterprise, this stage means the highest costs for the creation of goods. The new technology needs improvement. There are few manufacturers of goods, and they tend to produce only the main variants of the goods. The market is not yet "ripe" for the perception of various modifications. The buyer is still thinking: buy or wait. He is hampered by the prevailing consumer stereotypes. Marketing is given "cards in hand" in order to convince the consumer to take the risk of buying a new product. The consumer should receive the maximum amount of the most diverse information about the useful properties, benefits and benefits for buyers.

The most active consumers buy the goods first. However, as a rule, there are not so many of them, and the volume of sales of goods is small and often grows slowly. There are different pricing approaches. You can set a very high, "prestigious" price, focusing the buyer on the novelty and special utility of the product for him. Perhaps setting the lowest possible price to accelerate sales and expand the market segment. In any case, it is unlikely that the enterprise at this stage will receive a significant amount of profit. On the contrary, at the implementation stage, the "peak" of costs is reached. With the help of marketing, problems are solved: how best to convey to potential buyers the merits of a new product, what distribution channels to use to sell it, how to choose the optimal time to enter the market with a new product, and to foresee options for the response behavior of competitors.

Stage characteristics:

The stage is characterized by the receipt of goods for sale, familiarization of the buyer with the product, the buyer getting used to it. It is characterized by low sales and high costs, little competition. Perhaps the monopoly position of the product on the market, but the product is not technically developed and technologically polished. Pricing policy is not stable and depends on the type of product. A "skimming cream" strategy and a "slow-to-market" strategy can be used. In some cases, when introduced to the market, it is possible to sell a new product at a price below its cost. The firm's goal is to create a market for a new product.

Marketing tasks at the stage:

• 1. Maximum attraction of buyers' attention to a new product;
• 2. Reinforced advertising, concentrating efforts to promote the product;
• 3. Use of monopolistic advantage;
• 4. Collection of information about the assessment of buyers of a new product.

At this stage, it is necessary to inform potential consumers about a new product unknown to them, to encourage them to test the product, to ensure that this product is distributed through the distribution network.

• 1) Advertising.
• 2) Quality.
• 3) Price.
• 4) Service

The main consumers are "innovators". As a rule, these are young people who are the first to try a new product at a risk, if not for life, then for reputation (originals, dudes, dudes). They account for about 2-3% of end users.

3. Stage of growth. Let's say that the new product satisfies the needs of consumers, then the volume of sales begins to grow, "by leaps and bounds." Active buyers who re-buy a new product are joined by a large number of other buyers, whose inertia has finally been replaced by attention to this product. Advertising helped spread the word that a good new product was on the market. In the process of developing the technology, the high quality of the goods became stable. There are modifications of the product within the company, which is facilitated by the emergence of competing products. Prices either remain high or rise. Market demand is growing. The enterprise begins to receive significant profits, which increase and reach a maximum by the end of the growth stage. Making a profit means the beginning of the growth stage. It is beneficial for the firm to extend this stage, i.e. all efforts should be directed to increasing the growth time of sales volume. How to achieve an extension of the growth stage? You can try to improve the quality of the product, develop new areas of the market, find uncovered distribution channels for this product, increase advertising activity, continuing to convince the consumer of the merits of the advertised product.

Stage characteristics:

The stage is characterized by a significant increase in demand for a product and a corresponding increase in the production of this product. At this stage, there may be an excess of demand over supply, an increase in profits and stabilization of prices and advertising costs. The market is growing rapidly, however, there is an unstable volatile nature of demand. Possible response from competitors. The goal of the company is to develop the market, capture leading positions, and maximize sales growth.

Marketing tasks at the stage:

• 1. Gaining positions in the market;
• 2. Development of basic solutions;
• 3. Strengthening the commitment of buyers through advertising;
• 4. Increasing the duration of the stage of sustainable growth.

To maximize the period of intensive growth in sales volume and rapid market growth, the following approaches are usually used:

• improve the quality of the novelty, giving it additional properties,
• Penetrate into new market segments
• Use new distribution channels
• reorient part of advertising from spreading awareness about the product to stimulating its purchase,
• Reduce prices in a timely manner to attract more consumers.

Priority of elements of the marketing concept at the stage:

• 1) Price.
• 2) Advertising.
• 3) Quality.
• 4) Service.

Primary types of consumers:

The main consumers are "adepts" - trendsetters, opinion leaders in their social sphere. Their recognition makes the product famous and fashionable. They make up 10-15% of the number of end users. In addition, consumers include "progressives" or "early majority" (eg, students) who provide mass sales during the growth stage. They make up 25 to 35% of the number of end users

4. Stage of maturity. The product is produced in large batches according to proven technology with high quality. There is a slower than at the growth stage, but a steady increase in sales to its maximum value. Competition in the field of prices, similar products becomes sharper, original developments of competitors appear. To maintain a competitive position, improved product variants are required, which in most cases diverts significant funds. All this leads to a reduction in profits. Demand has become massive, the product has already saturated the mass market, people buy it again and again. In advertising work, an emphasis on the mass buyer-conservative is necessary. The form of advertising should become as mass and intensive as possible.

It is necessary to search for additional markets for a new product and new users. The company is developing a system to encourage more frequent purchases of goods by those customers who have already purchased it. In parallel, work is underway to find ways to use the product more diversely and new areas of application.

Stage characteristics:

The stage is characterized by market stabilization. There is a slowdown in sales growth rates. Per capita consumption is falling. Groups of regular customers are being formed, flexible prices are being observed, and warranty service and service are being expanded. The company's goal is to secure the market share it has won.

Marketing tasks at the stage:

• 1. Search for new markets;
• 2. Optimization of distribution channels;
• 3. Introduction of a set of sales promotion measures (discounts, competitions among consumers, sales on a premium basis);
• 4. Improving the terms of sale and service;
• 5. Development of product modifications.

The following are used as marketing tools at this stage: Market modification is aimed at increasing the consumption of an existing product. It includes:

• search for new users and new market segments,
• Finding ways to stimulate more intensive consumption of goods by existing customers,
• It is possible to reposition the product in such a way that it is attractive to a larger or faster growing market segment.

Product modification is the modification of product characteristics such as quality level, features or appearance in order to attract new users and intensify consumption. The following strategies are used for this:

• The quality improvement strategy aims to improve the functional characteristics of the product, including durability, reliability, speed, taste. This strategy is effective if
• a) quality can be improved
• b) buyers believe in the quality improvement claim,
• c) a sufficiently large number of buyers want quality improvement.
• · A feature improvement strategy aims to give a product new features that make it more versatile, safer, and more convenient.
• The external design improvement strategy aims to increase the attractiveness of the product.

Priority of elements of the marketing concept at the stage:

• 1) Service.
• 2) Price.
• 3) Quality.
• 4) Advertising.

Primary types of consumers:

The main consumers are "skeptics" or "belated majority". They provide mass sales at the saturation stage (they make up about 30-40% of the number of end consumers).

• 5. Stage of recession. Everything has its end. Someday the sales volume of the goods will still begin to decrease. This testifies to the venerable age of the product, when it enters the final stage of existence - a recession, characterized by the "leaving" of the product from the market. This is facilitated by the successful activities of competitors, changes in technology, and other consumer preferences. As a result, profits are sharply reduced, goods can be sold even at a loss. As a rule, prices are low, but at the end of this stage they may rise slightly. Competitors begin to leave the market for this product, the remaining manufacturers are forced to reduce its range, narrow their market space, their distribution channels begin to deplete. What are the options for extending the life of the product?
• 1. You can try to prolong the life of an aging product through intensive advertising, changes in its packaging, price maneuverability, and reorganization of the marketing system.
• 2. You can rely on committed consumers to this product, resell the product and "survive" all the remaining profit, dramatically reducing the cost of production and marketing.
• 3. You can stop the release of goods, withdraw it from sale. However, there is no need to rush. First, the most slow-moving representatives of this product are removed from sale, so to speak, "the counter is cleared for a winning display of the remaining product."

This is the classic pattern of the LC. Marketing, as a reliable and permanent curator, accompanies the product at all stages of its life, helping the manufacturer to achieve maximum profit.

The appearance of a gap between cycles in time often leads to a loss of market positions by an enterprise, a decrease in its economic performance, and even possible bankruptcy.

Stage characteristics:

The stage is characterized by a steady decline in demand, market contraction, buyers lose interest in the product. There is an excess of production capacity, there are goods - substitutes. There is a decrease in prices, there is a reduction in the production of goods.

The company's goal is to regain lost positions in the market, to restore sales.

Marketing tasks at the stage:

At this stage, the effectiveness of marketing activities sharply decreases, the expenditure of funds is not expedient and does not give a return. Possible reasons for the decline:

• 1. New advances in technology (obsolescence);
• 2. Changing tastes of consumers;
• 3. Increased competition.

Ways out:

• · price reduction,
• giving the product a market novelty,
• search for new areas of product use and new markets,
• removal of old goods from production (a sharp exit from the market is possible),
• reduction of the marketing program,
• transition to the release and promotion of a new promising product.

Priority of elements of the marketing concept at the stage:

• 1) Advertising new consumption.
• 2) Price.
• 3) Service.
• 4) Quality.

Primary types of consumers:

The main consumers - "conservatives" - are staunch opponents of the new (they make up 15 to 20% of the number of end consumers), as well as the elderly and people with low incomes.

Classification of types of life cycle of goods.

Figure 4. Traditional life cycle.

2. "Boom" - a very popular product, stable sales for a large number of years (for example, Coca-Cola)

Figure 5. Boom.

3. "Passion" - a quick take-off, a quick sale (fashionable seasonal goods).

Figure 6. "Passion"

4. "Long-term hobby" - fast rise, fast decline, but there is a steady residual sale

Figure 7. "Continued hobby"

5. "Seasonal goods" - the dynamics of sales has a pronounced seasonal character

Figure 8. "Seasonal product"

6. "Fashion" - passion for goods according to trends.

Figure 9. "Fashion"

7. "Product improvement" - periodic improvement of the product, aimed at improving its performance, which contributes to the resumption of a period of growth after some stabilization in sales.

Figure 10. "Improvement of the product."

8. "Failure" - lack of success in the market, the product is a loser

Figure 11. "Failure"

The marketer needs to choose the optimal moment to enter the market with a new product or to introduce an existing product to a new market. At the same time, one product can be in different markets at different stages of the life cycle. The duration of the stages in different markets may also be different. All this must be taken into account when compiling the company's product portfolio. It is desirable that a company with a wide range of products has at the same time products that are at the stages of introduction, growth and maturity. In this case, the income from the sale of goods at the stage of maturity contributes to the effective introduction of new goods, and goods at the stage of growth can provide additional funds for updating, developing modifications, and introducing discounts to the price of goods at the stage of maturity. It is necessary to form a product portfolio in such a way as to constantly introduce new products and at the same time maintain a balance of products that are at different stages of the life cycle.