Product Life Cycle Chapter 30 Section 2 Part 1

Product Life Cycle Stages Introduction Stage Introduction Stage Growth Stage Growth Stage Maturity Stage Maturity Stage Decline Stage Decline Stage

Introduction Stage Major goal – draw customers attention Major goal – draw customers attention Special promotions – ex. Free samples Special promotions – ex. Free samples Costs are high Costs are high Profit is Low Profit is Low

Growth Stage Increasing Sales and profits Increasing Sales and profits Target market familiar with product Target market familiar with product Advertising focus on customer satisfaction Advertising focus on customer satisfaction Competition arises Competition arises

Maturity Stage Sales slow or level off Sales slow or level off More competition More competition Target market owns product Target market owns product Advertising focus on competition Advertising focus on competition

Decline Stage Sales fall Sales fall Management will need to decide fate of product Management will need to decide fate of product 5 strategies during this stage 5 strategies during this stage Sell or license the productSell or license the product Recommit to the product lineRecommit to the product line Discount the productDiscount the product Regionalize the productRegionalize the product Modernize or alter the product offeringModernize or alter the product offering

Playstation 3 What stage in the product life cycle is this in? What stage in the product life cycle is this in? Justify your statement. Justify your statement.

Slinky What stage in the product life cycle is this in? What stage in the product life cycle is this in? Justify your statement. Justify your statement.

Uggs What stage in the product life cycle is this in? What stage in the product life cycle is this in? Justify your statement. Justify your statement.

Shamrock Shake What stage in the product life cycle is this in? What stage in the product life cycle is this in? Justify your statement. Justify your statement.

Fax Machine What stage in the product life cycle is this in? What stage in the product life cycle is this in? Justify your statement. Justify your statement.