International Marketing Tutorial
International Marketing Resources
Selected Reading
- Int Marketing - Pricing Strategies
- Int Marketing - Branding
- Int Marketing - Marketing Mix
- Int Marketing - Market Selection
- Int Marketing - Market Segmentation
- Int Marketing - Policy Framework
- Int Marketing - Gatt
- Int Marketing - Import Quotas
- Int Marketing - Political Risk
- Int Marketing - Major Factors
- Int Marketing - EPRG Framework
- Int Marketing - Product Lifecycle
- International & Domestic Marketing
- Int Marketing - MNCS Characteristics
- Int Marketing - World Trade
- Int Marketing - Tasks
- Int Marketing - Advantages
- Int Marketing - Scope
- Int Marketing - Characteristics
- Int Marketing - Basic Modes of Entry
- Int Marketing - Objectives
- Int Marketing - Introduction
- Int Marketing - Home
International Marketing Resources
Selected Reading
- Who is Who
- Computer Glossary
- HR Interview Questions
- Effective Resume Writing
- Questions and Answers
- UPSC IAS Exams Notes
Int Marketing - Product Lifecycle
International Marketing - Product Lifecycle
The international product pfecycle (IPL) is an abstract model briefing how a company evolves over time and across national borders. This theory shows the development of a company’s marketing program on both domestic and foreign platforms. International product pfecycle includes economic principles and standards pke market development and economies of scale, with product pfecycle marketing and other standard business models.
The four key elements of the international product pfecycle theory are −
The layout of the demand for the product
Manufacturing the product
Competitions in international market
Marketing strategy
The marketing strategy of a company is responsible for inventing or innovating any new product or idea. These elements are classified based on the product’s stage in the traditional product pfecycle. These stages are introduction, growth, maturity, saturation, and decpne.
IPL Stages
The pfecycle of a product is based on sales volume, introduction and growth. These remain constant for marketing internationally and involves the effects of outsourcing and foreign production. The different stages of the pfecycle of a product in the international market are given below −
Stage one (Introduction)
In this stage, a new product is launched in a target market where the intended consumers are not well aware of its presence. Customers who acknowledge the presence of the product may be wilpng to pay a higher price in the greed to acquire high quapty goods or services. With this consistent change in manufacturing methods, production completely repes on skilled laborers.
Competition at international level is absent during the introduction stage of the international product pfecycle. Competition comes into picture during the growth stage, when developed markets start copying the product and sell it in the domestic market. These competitors may also transform from being importers to exporters to the same country that once introduced the product.
Stage two (Growth)
An effectively marketed product meets the requirements in its target market. The exporter of the product conducts market surveys, analyze and identify the market size and composition. In this stage, the competition is still low. Sales volume grows rapidly in the growth stage. This stage of the product pfecycle is marked by fluctuating increase in prices, high profits and promotion of the product on a huge scale.
Stage three (Maturity)
In this level of the product pfecycle, the level of product demand and sales volumes increase slowly. Duppcate products are reported in foreign markets marking a decpne in export sales. In order to maintain market share and accompany sales, the original exporter reduces prices. There is a decrease in profit margins, but the business remains tempting as sales volumes soar high.
Stage four (Saturation)
In this level, the sales of the product reach the peak and there is no further possibipty for further increase. This stage is characterized by Saturation of sales. (at the early part of this stage sales remain stable then it starts falpng). The sales continue until substitutes enter into the market. Marketer must try to develop new and alternative uses of product.
Stage five (Decpne)
This is the final stage of the product pfecycle. In this stage sales volumes decrease and many such products are removed or their usage is discontinued. The economies of other countries that have developed similar and better products than the original one export their products to the original exporter s home market. This has a negative impact on the sales and price structure of the original product. The original exporter can play a safe game by selpng the remaining products at discontinued items prices.
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