The first question to ask yourself when deciding on which strategy is appropriate for your business is, “What stage of the product life cycle am I in?”
There are three stages to a product life cycle: introduction, growth, and maturity. If you’re just starting out and have yet to launch your product on the market then cost minimization may not be an appropriate strategy for you at this time.
On the other hand, if you’re in the growth phase of your company’s lifecycle then it might be worth considering how a focus on cost minimization can help with marketing costs down the line.
Your Turn If you’re in the growth phase of your company’s lifecycle then it might be worth considering how a focus on cost minimization can help with marketing costs down the line.
-Do you agree that focusing on cost minimization at this stage would be helpful for future marketing efforts? Why or why not? What are some potential drawbacks to implementing such an approach during this time period?
How does one know when they’ve entered into maturity as opposed to just being in the growth phase, and what implications arise from these two different stages? -What strategies should/could companies implement if they find themselves in “maturity” rather than “growth”? Which strategy do you think is most appropriate for each of these phases