How to Market a Declining Product

Reducing production is usually necessary when marketing a declining product.

A product life cycle exists in all areas of business. At some point, a product will start to decline in the marketplace. When this occurs, you have a few options to choose from. You can abandon the product and try introducing something new to the marketplace, or you can ramp up your advertising efforts and increase marketing and awareness for the declining product. In some cases, this can help bring the product back and give it an extra boost in sales. The more you put into your marketing campaign, the more likely it is that the product will cease to decline.

Instructions

1. Reduce your product line to only a few of the most popular models or versions of the product. For example, if you offer a product in a variety of colors, when the product starts to decline in the market, cut back production to your three most popular colors. This will save money and allow you to market the most popular models more effectively.

2. Examine your target audience. As the product declines in the market, fewer and fewer people continue to purchase it. Therefore, your target audience has decreased. Focus your marketing efforts on the audience that remains, not the audience you once had. For example, if your product was popular with most adults but is now primarily being bought by women between the ages of 35 and 50, then your marketing campaign should focus on their needs and wants.

3. Lower your prices. Because the product is declining in the market, you're producing fewer models and less product altogether. Therefore, your prices should drop. You can advertise this price reduction to your target audience, prompting additional sales.

4. Eliminate unprofitable distribution outlets. Look over all the places where you distribute your product, and only choose to continue to distribute the product in the most profitable places. For example, you might sell your product in department stores and through infomercials. If department store sales continue to decline, while your target audience continues to order the product after infomercials air, then stop distributing your product in stores and focus on marketing via infomercials.

References

• Reference for Business: Product Life Cycle and Industry Life Cycle