Sample Paper on The Product Life Cycle of a Service

The Product Life Cycle of a Service

The life cycle of a service involve four stages which include introduction, growth, maturity and the declining stage.  In every stage, there are various marketing activities that are performed to ensure the success of the service in the market. The activities involve integrating the elements of market mix which include product/service, price, place promotion, people, physical evidence and process (Restuccia, et al. 49)

The Introduction Stage

The introduction stage involves introducing new service to the market. At this stage, the product or service is new to the customers and, therefore, the company needs to ensure that the customers are aware of the service. As a result, many marketing activities are involved. First, the product or service must have attractive features to enable customers to differentiate it from the products or services offered by competitors. In marketing of a service, the company should highlight the benefits of the services to the customers as well as the uniqueness of the service. The service should be offered in packages to improve it physical appearance. The service provided should also be of high quality to attract customers.  The pricing method of the service also influences how the service performs in this phase. At the introduction stage, discounting pricing is usually encouraged to attract customers (Restuccia, et al. 39).  Many promotion efforts are also done at the introduction stage, which includes advertisements and sales promotion. The main aim of promotion is to create consumer awareness and to attract sales. The service should also be provided at a convenient location where it can be accessed easily by customers. The company offering the service should also ensure that the service is offered by qualified people to ensure the quality of the service (Stark 14).

The Growth Stage

The stage involves the growth in market share of the product or service (Stark 19). The service receives an increase in sales because of increasing demand.  To increase the rate of growth for the service, a company needs to improve the quality of service, offer the service at a competing price, increase it accessibility and enhance it promotion. The promotion at this stage is aimed at increasing consumer awareness and attracting sales (Srinivasan, 464).

Maturity Stage

At the maturity stage, the product or service is at its peak, and it is characterized by constant sales and market growth. During this stage, companies earn huge profit since there are little marketing activities required. Companies can also offer its services at a relatively high price since the consumers are already aware of the service in the market and where they can access it. As a result, the only promotion that is conducted is to remind the customer of the existence of the service and encouraging them to purchase more. Nevertheless, a lot of market research is required to look for new opportunities such as new markets or diversification of the service to prolong the maturity stage (Restuccia, et al. 49).

Declining Stage

At this stage, the sales of the service drop significantly as well as the market share. Profits also depreciate and eventually the service may exit the market. During this stage, marketers should change the features of the service as well as the price to re-introduce it in the market. Marketers should also make the decision to drop the product to avoid incurring losses in the long term (Stark 29).

Works Cited

Restuccia, Mariachiara, et al. “Product Life‐Cycle Management and Distributor Contribution to New Product Development.” Journal of Product Innovation Management (2015).

Srinivasan, Vijay. “An integration framework for product lifecycle management.” Computer-aided design 43.5 (2011): 464-478.

Stark, John. “Product Lifecycle Management.” Product Lifecycle Management. Springer International Publishing, 2015. 1-29.