The Product Life Cycle and Marketing

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The Product Life Cycle and Marketing
BHMC 351 Marketing Healthcare Services
Assignment 3.3

Abstract

There are many things to be considered when marketing a product. These things include: length of existence time, quantity of competitors, and the quantity “of sales or revenue the product is generating” (p264). These are ways the marketer can obtain factually information on the product. After understanding the information the marketer can then look at the product life cycle. The product life cycle is the different “stages a product goes through as it exists in the market from its first introduction to its final withdrawal” (p 264). This life cycle has four stages: introduction, growth, maturity, and the decline. The introduction phase consists of the stage in which a product, or service, is first introduced into the healthcare market. The product, or service, has a great expectation in this phase. If the product, or service, is introduced into the market and does not meet consumer expectations, it is likely that it will not greatly advance to the growth phase. With the economy as down as it is, price is a factoring concept in the introduction phase. Marketers can use a “skimming price strategy”, come out with a high or equal to competitors price, or use a “penetration price strategy”, come out with a low price (p 265). Promotion is known as an “essential component to consider in the introduction stage” (265). This is because marketers have to get that product, or service, out to the consumers. Without consumer support the product, or service, cannot move into the next phase: growth. Growth is the phase where the product, or service, begins to drastically increase its sales or revenue. During the growth phase, marketers should produce a selective demand. Selective demand helps consumers choose a certain facility over another. Sometimes the facility will even make an altered version of the product, or service, to better accommodate a...
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