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Breaking Free from Product Life Cycle

In: Business and Management

Submitted By jlawson5678
Words 456
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Breaking Free from the Product Life Cycle
Part A. Basic Concepts and Ideas
1. The established product life cycle dictates that after a period of introduction and growth, the product will mature and then gradually decline and lose its market share. There are proposed methods aimed at breaking this rise and decline model which utilized techniques called reverse positioning, breakaway positioning, and stealth positioning.
2. Each positioning technique is generally associated with a certain type of product or firm. The reverse positioning method can be used by companies providing intangible services. The breakaway method can be used by tangible packaged goods. The stealth positioning method can be used on technology based products.
3. Reverse positioning occurs when a service providing firm drastically eliminates the number of features typically offered the customer in the industry. While reducing the number of options given to the customer, the firm introduces new high quality features that serve a niche market. Breakaway positioning involves the re-branding of a product into a new marketplace. No features of the product are eliminated nor introduced. The product is simply marketed toward a new audience. Stealth positioning is a complex strategy of introducing new products to consumers in a non-straightforward manner. In short, consumers buy the product believing it to be used for one purpose, when in practical function, it is used for other purposes.
Part B. Implications for Application

1. Commerce Bank and JetBlue are two models of reverse positioning. Instead of competing with other banks by offering high interest and other account opening incentives for opening, Commerce Bank offers a very limited number of account types, but many more convenient benefits to the customer including notably the extended late night and weekend hours and coin counting

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