THE PRODUCT LIFE CYLE

INTRODUCTION Product  branding and quality level is established  patents and trademarks) are made  Pricing  Low penetration to build market share  High skimming to recover development costs  Competitive pricing is also used sometimes (in the middle) Place  Selective/Limited until consumers accept product Promotion – goal is to Inform  Capture Innovators and early adopters  Build awareness and educate

GROWTH Product  Additional features and support services Pricing  Maintained with little competition Place  Channels/locations are added as demand increases  Incentives offered to retailers Promotion – Goal is to Persuade  Aimed at broader audience  Increase in # of ads

MATURITY Product  Features are enhanced to differentiate the product from competition Pricing  lower because of competition Place  intensive and incentives offered to retailers decrease Promotion – Goal is to Remind  emphasize product differentiation

DECLINE Product  Figure out why the product is in decline and make the necessary changes Pricing  Make small changes in price points Place  Reduce the number of locations Promotion – goal is to Refresh  New advertising campaigns, new contests, etc

DECISION POINT 3 Main Strategies Maintain the product  rejuvenating by added features  finding new uses Harvest the product  reduce costs  continue to offer it to loyal niche market Discontinue the product  liquidating inventory  selling it to another firm

MAYO MADNESS

Product Life Cycle Comparisons