Just as humans go through life cycle, (baby to teenager to adult), most products (and services) pass through various stages over time. These stages make up a life cycle of a product called Product Life Cycle. Although the rates of change, and the length and intensity of each stage may vary, most product life cycles follow roughly the same pattern.

In the introductory stages (similar baby stage) the focus is on the product. Later, the focus changes to promotion and price. Why do marketers need to know the product lifecycle?

 Often called a “ Launch”  Consumers uninformed  Branding 101  1st Consumers = “early adopters” (trendsetters)  Can you think of any products that are in the launch phase now? Do a quick search! Can you think of any products that are in the launch phase now? Intro

 Followers to early adopters help drive increased sales.  Competition is attracted.  Product or service is managed carefully  Wide advertising & distribution is common  Branding, branding, branding! Growth

 Flat growth  No increase/decrease in sales  New consumers replace those drawn to competitors  Advertising keeps public aware maturity

 Sales decreasing as customers move to new products  Can be averted or delayed by advertising  Any products? decline

 Final stage in product life cycle  Brand Management decision point !!  Reformulate / Repackage  “New & Improved”  New promotion & repricing Decision point

 We finished here at slide 7 (previous slide) today.

Fad Niche Seasonal

 Are there steps to when we make a big ticket item purchase?  Psychologists have proven that generally, consumers go through five (sometimes six) steps when making a purchase.  This study goes hand in hand with understanding consumer psychology of WHY WE BUY.

Processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and the product use.

Purchase Evaluation of Alternatives Evaluation of Alternatives Information Search Criteria is Set Need Recognition – The Consumer has a WANT Need Recognition – The Consumer has a WANT Cultural, Social, Individual and Psychological Factors affect all steps Cultural, Social, Individual and Psychological Factors affect all steps

 When a current product isn’t performing properly  This drives the entire buying decision cycle.  When the consumer is running out of an product  When another product seems superior to the one currently used

Are there ever times when we second guess our purchase decision? The sixth and final step (in some cases) is….. REGRET!

Chapter 5 Version 6e 15 Can minimize regret through: Effective Communication - Follow-up - Guarantees - Warranties Cognitive Dissonance ? ? Did I make a good decision? Did I buy the right product? Did I get a good value?

 Create a Google Doc and share it with me.  Title it: Buying Decision – your name, ex: Buying Decision – Ms. Busteed  Place yourself in the buying decision hotseat. Select an item that you would like to purchase (ie: car, vacation, donation, house).  Go through the six steps of the Buying Decision process. In each step, include information necessary, ie: criteria for buying a car (colour, 4 door, low mileage, etc)  When going shopping, do so online and include at least 2-3 links of items that fulfill your criteria!  When selecting your final purchase, include a link and rationale as to why you selected this product in the end.  Have fun shopping! When done, share with a friend!