Product…Service

Marketing Defined

Product Lifecycle

Stage 1: Introduction  Program first introduced  Small number of participants  Little or no profitability  Disproportionate demand on resources  Slow growth period  Not much direct competition

Stage 1: Introduction  Marketing Implications : Modify product to address oversights in the creation…from test markets Modify based on feedback from initial participants Heavy emphasis placed on promotion  2 for 1  Free class, 1 mo. membership

Stage 2: Growth  Rapid growth in # of participants Early participants stay & new ones are added  Sharp increase in revenues  Maintain high quality of product to ensure continued participation  Demand may exceed supply

Stage 2: Growth  Marketing Implications : Word of mouth generates awareness Begin creating user loyalty  Fix program issues, problems Promo is no longer a major focus  Work to attract new customers

Stage 3: Maturity  Participation increases but not at the same pace as take-off  Outside competition enters the market  Longest stage, most products here Most marketing mgt deals with maturity stage

Stage 3: Maturity  Marketing Implications : Try a different marketing strategy  Sales  Ad campaigns…Coke Generate ideas & strategies to maintain loyalty & interest Look for new target markets

Stage 4: Saturation  Reached its peak period of success in terms of participation  Program is dependent upon repeat participation  Replacement of drop-outs with new consumers – steady #’s

Stage 4: Saturation  Marketing Implications: Decisions:  Modify the program or let it decline?  Can agency compete with others?  Is it worth the costs to continue?

Stage 5: Decline  Decline in the # of participants  People get into more interesting/different programs  Options during this stage Petrification Death Extension…

Stage 5: Decline  Death Let enrollment stop a program  Petrification Let it go Take on a new format or self run  Extension….

Product Market ExistingNew Existing New

Extension Strategies  Market penetration  Existing product & market  Leave the product as is & go deeper into the market  Increase participation in current target market  Go after competitor’s consumers  Attract non-users  Used during onset of saturation stage

Extension Strategies  Market development Existing product, new market  Minority market, women, outer markets Used in saturation or early decline

Extension Strategies  Product development Existing market, new product  Develop a new product for the same market of the declining program Softball league vs clinic Canoe trip vs camping trip Used in saturation or early decline

Extension Strategies  Replacement New product, existing market Replace with an improved version Intro new features of product Develop quality variations Used in the saturation or decline stage

Extension Strategies  Difference between Replacement & Product Development Replacement – improved version Development – new product

Extension Strategies  Diversification New product, new market Focus on expansion to attract new users Used in the decline stage Begins the life cycle over again

Why Product  Dictates target market & other elements of marketing mix  Developed to meet needs to cause an exchange  Manipulated to increase sales