Page 186 - GLOBAL STRATEGIC MARKETING

The heart of the matter for managing a product overseas is the product life
cycle: managing the product through the stages of introduction, growth,

maturity and decline. The international product life cycle suggests that
products in international markets can have continuous lives in different
countries. The best example in the developed world is the black and white

TV. When the colour TV came on the market, the black and white TV was
sold in its decline stage to LDCs. In the past, the length of the product life

cycle from birth to death was unpredictable. In this case, when the product
faced the problem of saturation, competition or product innovation, market
growth in LDCs followed. It is important to find the right time to introduce

a product, so the company will need to find out the time limitations for the
product. It is important to say that for the international company, the most

important point is the gap between the birth of the product and its death in
terms of profitability. Although there are many pros and cons about the
theory of the product life cycle, it has at various times had a role to play in

certain companies. Also, there is an increasing need for a good policy on
new product development and differentiation in order to replace or extend

the current life cycle theories.

7.7.1 Specific strategies/Stages of the PLC

Depending on the stage in the product life cycle, various strategies are
available to the organisation in terms of the product’s position in the market
place (dominant, strong, favourable, tenable or weak) in relation to the

stages in the product life cycle (introduction, growth, maturity and decline).
The characteristics of each stage of the PLC and market position are

outlined by Ranchod (2004). This concept is highlighted in Table 7.1. and
the strategies that should be adopted in relation to the product life cycle
stage and market position for domestic and international markets.