Why do marketers need to know the product lifecycle? Most products and services pass through various stages over time. These stages make up a life cycle. Although the rates of change, and the length and intensity of each stage may vary, most life cycles follow roughly the same pattern. In the introductory stages the focus is on the product. Later, the focus changes to promotion and price. Why do marketers need to know the product lifecycle?

Product Introduction Often called a “ Launch” Consumers uninformed Business info: Product features Availability Design Brand Identification 1st Consumers = “early adopters” (trendsetters) Different products require unique introductory Intro

Growth Stage Followers to early adopters help drive increased sales. Competition is attracted. Product or service is managed carefully Wide advertising & distribution is common Growth

Maturity Flat growth No increase/decrease in sales New consumers replace those drawn to competitors Advertising keeps public aware “Cash Cows” (no development costs) maturity

Decline Sales decreasing as customers move to new products Permanent phenomenon Can be averted or delayed by advertising decline

Decision Point Final stage in product life cycle Brand Management Reformulate / Repackage “New & Improved” New promotion & repricing GO or NO-GO Decision point

Non Traditional Product Life Cycles Fad Niche Seasonal