1. Product Life Cycle

2. 4 Stages
Introduction
Growth
Maturity
Decline

3. Introduction Product is brand new No other products like it
High Advertising costs
High production costs

5. Introduction Must set price high to accommodate costs
Must be low enough that consumers will buy
Most products never make it out of this stage

6. Growth Product has survived introduction
Consumers buy and like product
Competitors join market
Advertising costs drop some

7. Growth
Production costs drop some
Price must compete with others

8. Maturity Product is well known and widely used
Other competitors offering same/similar product
Price totally based on competition
Advertising/production costs----steady

9. Decline Product isn’t as popular People don’t buy it much anymore
Choices:
Find new uses for product
Improve product
Cut price in order to sell