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On the application of product life cycle theory in automobile marketing Update time 2009-5-4 9:25:28 Print the number of clicks in this article 195 1 Abstract: The product life cycle can be divided into four stages: introduction, growth, maturity and decline, and different marketing strategies should be adopted in each stage. Taking a brand car in Jilin Province as a specific case, this paper expounds the application of product life cycle theory in automobile marketing. Through the analysis, we can see that it is appropriate to combine quantitative analysis with marketing theory to determine the choice of enterprise marketing strategy based on product life cycle theory.

Keywords: product life cycle strategic choice, automobile marketing

Product life cycle theory is a mature theory in marketing, which has been widely recognized by people. Enterprises adopt various marketing strategies, hoping to extend the life cycle of products and get more profits. Therefore, the product life cycle theory has important guiding significance for enterprises to adopt appropriate marketing strategies. To use the theory of product life cycle to guide the formulation of marketing strategy, we must first distinguish the stages of product life cycle. Using econometrics, this paper makes a preliminary analysis on the division of turning points in product life cycle, and combining with marketing theory and quantitative analysis, puts forward some suggestions on the strategies that should be adopted in each stage of product life cycle, in an attempt to determine the choice of marketing strategies.

First, the marketing strategy of each stage of the product life cycle

Product life cycle refers to the product's market life, that is, the total time from the product entering the market to the final exit from the market. After R&D and trial marketing, it enters the market, and its market life cycle begins, and the product exits the market, marking the end of the life cycle. It is difficult to indicate the beginning and end of each stage, and it is usually distinguished by the obvious change of sales growth rate or decline rate. Therefore, marketers should review the normal evolution of product stages and the average duration of each stage. The product life cycle can generally be divided into four stages: introduction period, growth period, maturity period and decline period.

Products in different periods should adopt different marketing strategies. Lead-in period: Generally, only a few companies or even exclusive companies produce styles. Because of production and technical problems, the product cost is high and the price is high. The company must direct its sales force to the most likely buyers and shorten the introduction period as much as possible. Generally speaking, the marketing strategies of products in the introduction period include fast predation, slow predation, rapid penetration and slow penetration. Growth period: the growth period is marked by rapid sales growth. Early users liked this product, and other consumers began to follow this leader. New competitors join in, and they increase their attractiveness and profits through mass production. In view of the characteristics of the growth period, in order to maintain its market growth rate and extend the time to obtain the maximum profit, the company can adopt strategies such as improving product quality, finding new market segments, changing the focus of advertising and reducing prices. Maturity: For mature products, we can only actively extend the maturity or recycle the product life cycle. To this end, we can adopt strategies such as market improvement, product improvement and marketing mix improvement. Decline: Faced with declining products, enterprises need to conduct serious research and analysis to decide what strategy to adopt and when to withdraw from the market. Usually they can adopt strategies such as continuing, concentrating, shrinking and giving up.

Second, based on the product life cycle theory of automobile marketing

Taking the sales of a brand car in Jilin Province as an example, we illustrate the application of product life cycle measurement and prediction in marketing.

1. Division of product life cycle

Logical growth curve can be used to approximate the product life cycle curve, and its common form is: where k, a and b are parameters. Before the point (lna/b, k/2), the growth rate of Y is faster and faster, and after this point, the growth rate of Y gradually slows down and approaches the saturation value K, so the point (lna/b, k/2) can be taken as the dividing point between the growth period and the maturity period of the product. It can be seen that before the point (0, K/( 1+a)), the value of y is small and the growth rate of y is slow. After this point, the growth rate of (0, K/( 1+a)) is obviously faster, so this point can be used as the dividing point between the product introduction period and the growth period. According to the theory of product life cycle, the mature stage of a product can still be divided into three stages: growth stage, stable stage and decline stage. The first period is maturity in growth, the second period is maturity in stability, and the third period is maturity in recession. Assuming that K0 is the approximate value of Y when the market is saturated, and the corresponding time point is T0, the growth curve can be rotated around t=T0 180 degrees, and the curve shape that can describe the gradual decline of Y from saturation value can be obtained. According to symmetry, when y drops, the speed of y drops slowly before the point (2t0-LNA/B, K/2) and quickly after this point. Because in the decline period of products, there is a great risk of profit decline or even loss, so we might as well set a point (2T0-LN3A/B, 3K/4) as the dividing point between product maturity and decline period.

We obtained the sales data of this brand car from 1996 to 2004 through market research, as shown in table 1:

2. Determination of product life cycle

According to the data, the form of the curve can be obtained as follows:

Simulate the change process of the car sales of this brand, and the predicted values are as follows:

It can be seen from the predicted values in Table 2 that the sales volume of this brand of cars will reach its peak near 2008, so it can be determined that T0= 13. According to the growth curve model, it can be calculated that the dividing point between the lead-in period and the growth period is (0,2.07), the dividing point between the growth period and the mature period is (4.98,8.98), and the dividing point between the mature period and the recession period is (18.35, 13.46). By simulating the sales volume, the life cycle interval of the product is as follows:

3. Strategy selection

Through the division of product life cycle, it can be seen that brand cars are currently in a mature stage, and brand cars have been recognized by most potential consumers, and sales growth is slow. After a period of high sales and relatively stable sales, sales will begin to decline gradually. At this time, what enterprises expect is to extend the maturity of brand cars as much as possible by using appropriate marketing strategies in order to obtain more benefits. At this stage, we believe that enterprises can adopt the following marketing strategies to extend the maturity of brand cars.

Market promotion: establish an "abnormal" relationship between products and customers. Welch, former president of General Electric, said: "When the' normal relationship' between quality, variety and price is comparable to that of competitors, the focus of marketing activities is to establish an' informal' relationship with customers, accurately understand the products and personalities customers want, and grasp their desire to buy and update products." In other words, it is necessary to enhance the brand's own characteristics, so as to win more customers who have used other brands of cars. At the same time, efforts should be made to establish the brand image of this brand car. After the automobile enters the mature stage, its consumers also pay more attention to the design taste of the automobile. In the competitive market where the trend of product homogenization is becoming more and more obvious, simple interest demand may not impress consumers' hearts, but it can satisfy consumers' self-esteem, and self-realized high-grade design is more likely to attract consumers' attention. Therefore, brand cars should pay more attention to the personality and taste of their own design, so as to win more consumers in the mature period. Product improvement: For a car, its own function should be the most important attribute to increase its charm. With the continuous progress of technology, the improvement of automobile functions is faster and faster. Manufacturers of this brand of cars should increase investment in technology research and development and develop new technologies to improve the functions of cars. At the same time, the change of car style can not be ignored. Car models should not only reflect fashion, but also have their own unique connotation, so as to be unique in the car market with diverse styles.

Marketing mix: Judging from the current situation in China, the car price in China is still on the high side, and there is still room for decline. In order to win more consumers, this brand of cars can be appropriately reduced in price. However, whether a car is a means of transportation or a status symbol, its price factor is not the only factor that affects its purchase. Consumers often pay more attention to its cost performance when buying a car. The manufacturer of this brand car must not only make a fuss about the price, but should pay attention to the overall performance of the car, strengthen the after-sales service level and improve the overall value. In the distribution channel, cars can be sold through brand stores and chain stores. In sales, we should pay special attention to the financing methods of automobiles. In my opinion, the number of buses is decreasing, while the number of private cars is increasing. Installment payment is one of the main ways for private consumers to buy cars, so automobile manufacturing enterprises should pay attention to strengthening cooperation with auto financing companies. In terms of promotion, the auto show is of great significance to automobile sales, so the manufacturers of this brand of cars should pay attention to making good use of the opportunity of the auto show. At the same time, automobile advertisements in TV, newspapers and magazines should pay more attention to artistry and highlight the characteristics of automobiles. At the same time, we should pay attention to the continuous improvement of after-sales service, which is also an aspect that consumers are very interested in.

Three. conclusion

Product life cycle theory is a mature theory in marketing, which holds that the sales process of products can be divided into four stages. Through these four stages, we can describe the process of products entering the market, rapidly increasing sales, being generally recognized by consumers and withdrawing from the market. In these four stages, the maturity of products is generally longer than other stages. Enterprises can extend the life cycle of products by adopting various marketing strategies, especially hoping to extend the maturity of products, so it is particularly important to determine the appropriate marketing strategies at each stage of the product life cycle. To determine the marketing strategy of each stage of the product life cycle, we must first determine which stage the product is in. Based on the sales volume of a brand car in Jilin Province, the interval division of each stage of the brand car life cycle is determined. According to the results, it is considered that the brand car is in the mature stage at present, which basically conforms to the current automobile sales environment in China. At the same time, it is predicted that the sales volume of this brand car will reach the saturation value around 2008, and its saturation value is about 17.3 10000, and this brand car will enter the recession period around 20 14 years. According to the principles of marketing, this paper puts forward some suggestions on the marketing strategies that brand cars should adopt from three aspects: market improvement, product improvement and marketing combination. Therefore, based on the above discussion, it can be considered that it is appropriate to combine quantitative methods with marketing theory to determine marketing strategy. Marketers can use this method to remove the errors in actual operation, so as to obtain the results of lean interval division and better improve the application of product life cycle principle.

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