1. 3.01-B Product Life Cycles

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

3. 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

4. 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

5. Product Life Cycle What happens during Maturity Stage?
The product’s sales level off. More money is spent on competition during this stage.
During the Decline Stage:
Sales start to decline. A company must decide to alter the product, discount, or discontinue product.

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