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Political and Legal Factors. Life style describes helps group markets around ideas such as health, youthful, or environmentally conscious. Possible stages of the product life cycle are shown in Fig. For certain products in a particular market, there are different intervals, in certain stages of development.

Therefore, many enterprises, especially SMEs make a special moment and cycle analysis, in which the product is.

Of course, development of strategy , and especially this on the basis of product life cycle varies substantially, depending on the phase in which the product is at the time of drafting the strategy in a market or market segment Kotler, , in particular for SMBs. This way chosen strategy, makes a combined analysis of market development strategy and product development strategy.

Depending on which stage of development is the product, enterprises develop strategies based on market developments and the relationship between supply and demand at the moment for certain product Gunter, At the Stage of Product Introduction Companies have recognized the need and demand for the product, but also considering the possible risks of failure by placing a new product or entry in a new market which can be: - A high degree of potential failure - Limited distribution - The need for continuous improvement of the product - Negative profit - Higher marketing expenses Growth Phase of Product It presents a more favorable situation in the process of developing the strategy.

This phase is characterized with a high volume of sales, with a high growth market and companies can count on a high profit, high product prices and continued to plan its development in such a promising market.

Phase of Maturity of the Product In such a situation, especially small and medium enterprise must be very careful in developing marketing strategy. This phase differs from the other phases because of its specificity, especially in the length of time that it can be. Mastery of compiler of strategy is to find the exact position of the product of this phase curve. This phase is characterized with a low growth rate of the market, but the company product has reached a consolidation in the market, a constant level of sales volume, new investments are not needed for product and economies of scale for this product or business to SMBs is relatively constant.

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Degeneration Phase of the Product In this phase better strategy to take, is to find opportunities to extend the life of the product, but without investing in it. In this situation the market is saturated with product, demand is steady decline. Possible marketing strategies can be: - Discovery of new markets.

The results of this survey have shown that Kosovo companies, especially small and medium businesses give maximal importance to the product life cycle. For some of them, it can be said that it is the only analysis that they conduct during the planning of the marketing strategy.

This may be true, due to specifics of the market in Kosovo. Another fact is that Kosovar companies have problems when it comes to exporting their products, therefore their market remains within the Kosovo borders and for most of SME-s the strategy for market expansion is unrealistic.

They are not necessary because their influence is not really noticed or they are dynamic, interchangeable and unstable that does not allow a long-term strategy for a company.

Licensed under Creative Common Page International Journal of Economics, Commerce and Management, United Kingdom Therefore, for many companies it is probably sufficient only one product life cycle analysis to do the planning for their future and in some cases also for companies who use the market development strategy or product development strategy.

SME-s in Kosovo has given different opinions regarding the difficulties in planning and then application of various strategies, which are also analyzed in PLC prism. Most of them mention the difficulties in the initial and last phase of PLC, as stages that bring most problems in application of strategy.

Below we have the graph that shows the statements of the managers of SME-s in Kosovo, related to phases of PLC where they notice most of the difficulties in their strategy application. Figure 2. Enterprise has already spent heavily on market research for new product and is in a situation when you add in the promotion expense and a lower volume of sales, then we can consider that this stage is the most dangerous period for the losses of the enterprise.

Kosovo's enterprises are particularly vulnerable at this stage. Limited financial capacity make that even smaller failures of this nature can sometimes be fatal for them.

Only those businesses that have more than one business unit have been successful in this period. Higher costs compared to sales, indicating the enterprise losses in this period see curve are the most common failure of SMEs in Kosovo.

While enterprises with more business units as Devolli Company afford easy reach logging covering revenue losses from other units, but only in a reasonable period of time. In this situation Kosovar businesses can find solutions through personal sales as a form of promotion with lowest cost and try to cut as much time developing this phase. Enterprises that have success or not at this stage of PLC's distinguished by the following characteristics: a The role, importance, size and location of the company issuing the product on the market.

The reasons are various. In this situation, perhaps the most suitable solution for businesses would be the fast skimming strategy. This, in fact, requires high promotion expenditure, but it also enables high prices and high gross margin.

This enables enterprise efficiency and financial sustainability creates its top facing competition. High spending is focused on the promotion and other forms of economic propaganda, and efforts to expand the sales network. At this stage the Kosovo market is quite characteristic.

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It is established practice of companies, especially in the last decade, to copy each other. In a small market like that of Kosovo this notices very quickly and in a very short period of offensive noticed other enterprises of the same industry in the market. It is not clear how is developed this enterprise culture! Neither the questionnaire response arises not clear whether this lack of vision and their creativity or fear of enterprises, especially SMBs beginning with its first test of market and customers with new products, but prefer to apply the strategy of following the leader.

Because of this situation at this moment begins the fall of prices which should happen in the next phase the phase of maturity. It is not an easy situation for enterprises. Especially not to take that first launched the product because it carries a higher cost of expenses from the initial period of product development and launch phase losses of the PLC.

In such a situation the company in Kosovo should too early to begin to protect the product and its sales volume by competitors. To overcome this situation, most SMBs in Kosovo prefer to expand the assortment gamma of the product, which should also happen in the next phase phase of maturity PLC's. It should be noted that for most SMBs in Kosovo is not clear when the growth phase begins as the product life cycle.

Common strategy of enterprises that have product in the growth stage of its life cycle is that at this moment to keep products at high prices in the market. This is due to several reasons. First, the new product in the market finds a big gap between the market potentials and its sales volume. This means that the demand for the new product is still higher than supply.

Therefore, enterprises should use this opportunity to increase sales, but also to maximize the profits from this product, keeping prices high and realizing a large profit margin. This is most necessary for the enterprises because of the need to return as soon as possible big investments that have been made in creating new product.

In most SMBs in Kosovo this is not the case. The survey with these businesses has identified numerous reasons.


The first is that they have not very clear boundaries of the growth phase of the product. Another reason mentioned is competition from big businesses and low prices applied from them.

And a higher price use, whether in the growth phase of the product would be very dangerous for SMBs and bring a product to failure in the market. According to them, it comes from the reaction of competitors quickly bounds with similar product or substitute products. So, at this stage of the product life cycle, mostly noted the importance of market segmentation and production of unique products for SMBs.

At this stage the market becomes more vendors polypolistic.

Among the enterprises there is a price war especially for enterprises which results in decreased profits. Increased sales volume at this stage does not mean increased profits. This is due to the necessity of lowering prices and ongoing promotional activities. They think that this is the period when enterprises are distinguished successful business with those which are improvising and looking at any situation requiring market gains momentum.

The latter also characterized by lack of vision for their companies and have not clear what is the basis on which the industry thinks to develop their business in the future.

On the other hand, SMBs in Kosovo that have clear vision and are strongly established for the industry in which they are to grow and doing business in the future, the maturity stage of product life cycle scrambling to end.

Despite the fact that at this stage marked decline in profits although the volume of sales marks stability , serious SMBs in Kosovo continue on additional costs in different forms of promotion.

Most practiced form of SMBs in Kosovo is advanced sales Kosovo, like different forms of bonuses and other forms of growth product attributes.

Category of variable revenue increases.Differentiated Marketing Segment 3 C. Types of of behavioral segmentation are based upon occasions, benefits sought, user status, usage rates, loyalty, downloader readiness stage, and attitude. The results of this survey have shown that Kosovo companies, especially small and medium businesses give maximal importance to the product life cycle.

Category of variable revenue increases. The costs for actions taken to keep the product are not reasonable. Life style describes helps group markets around ideas such as health, youthful, or environmentally conscious.

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