Tuesday, October 29, 2019

MBA in a Nutshell #11 - Marketing : Marketing Mix - Product - Product Lifecycle

Image result for product lifecycle

Like many living things, a product has a life cycle and evolves through multiple stages.

i) Introduction

At this stage, there is a lot of research and development. Sales and profits are low. A product at this stage his highly vulnerable and funds are needed to grow properly.

ii) Growth

At this stage, sales and profits are growing. A substantial amount of promotional effort is required to sustain this stage.

iii) Maturity

Sales and profits peak at this stage. Profits may diminish because competition is getting into this game.

iv) Saturation

Decreased profitability occurs here. Competitors are starting to get into the game.

v) Decline

Market share is slowly being eroded and cost cutting will occur at this stage.

vi) Abandonment

Production ends at this stage.

When you understand that everything has a beginning and an end, you begin to have less of an attachment to your product and more to the process of grandfathering a product through the various life cycles. Right now, I believe that my program, having only graduated 300+ students, is at a growth stage with maturity not too far away.

Of late, I noticed that mainstream media is starting to develop a bigger fascination with FIRE and FB groups are trying to establish some materials on to attain some limited version of financial independence. As of now, I believe that any attention given to the possibility for early retirement will strengthen my hand so I expect to put in more effort to ride on this interest from the general public.

Over time, I do expect more groups to want to muscle into financial education territory, as I am sitting on some capital and profits over the past year, I should have a few tricks up my sleeve to further differentiate my product from the rest of the pack.

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