3.01-B Product Life Cycles

Introduction What is a product that has been around for as long as you can remember? How has it changed over the years?

Product Life Cycle Product Life Cycle - represents the stages that a product goes through during its life. There are 4 Stages of Life Cycle: 1. Introduction 2. Growth 3. Maturity 4. Decline

Product Life Cycle What are the goals of the Introduction Stage? To increase product awareness Get the customer’s attention thru promotion Lots of special promotion During Growth Stage: Customers are aware of product, sales increase Companies focus on customer satisfaction Competition starts from other companies

Product Life Cycle What happens during Maturity Stage? The product’s sales level off. More money is spent on competition during this stage. Discussion: Have class to choose a mature product Discuss how company is managing: 1. Competition 2. Advertising 3. Distribution – Is it only sold at 1 place 4. Other Strategies they have put in place

The life product cycle model Development Development Growth Growth Maturity Maturity Decline Decline Few: Few: Growing adopters: Growing adopters: Growing selectivity Growing selectivity Saturation of Saturation of Drop-off Drop-off trial of trial of trial of trial of of purchase of purchase users users in usage in usage early early product/service product/service Repeat purchase Repeat purchase adopters adopters reliance reliance Entry of Entry of May be many May be many Fight to maintain Fight to maintain Exit of some Exit of some competitors competitors share share competitors competitors

Product Life Cycle During the Decline Stage: Sales start to decline. A company must decide to alter the product, discount, or discontinue product.

Product Life Cycle Sources: Marketing Essentials Marketingteacher.com Google