Some companies abandon weaker products to concentrate on new and more profitable

Question

Some companies abandon weaker products to concentrate on new and more profitable ones. However, they may be ignoring the high potential many mature markets and old products still have. Differentiate between three ways marketers could change the course of a brand in the maturity stage of the product lifecycle Some companies abandon weaker products to concentrate on new and more profitable ones. However, they may be ignoring the high potential many mature markets and old products still have. Differentiate between three ways marketers could change the course of a brand in the maturity stage of the product lifecycle

Explanation / Answer

It is not a very recommended strategy to complete ignore the product which are in the declining stage and are profit reaping machines for the company but a different form of approach and strategy should be deployed and used for this category of products:
•   Marketers can follow the approach of tapping the untapped market and try and expand the customer base, this would ensure that there is a set of customer and for them the profit would be completely new and the demand may rise a bit because of stepping foot in the unexplored area by the organisation.
•   The cost and the ultimate profit can be cut down a bit and simultaneously this approach of comparing the pricing with the substitute products can be used so as to create an awareness that similar products are costing much more than our product.
•   Some amount of research can be done and by modifying the product a bit and presenting it as a newer product can also work at times in which the originality of the product is customised basis the needs of the people.

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