1. MARKETING MIX 1. PRODUCT
PRODUCT LIFE CYCLE

2. Product Life Cycle (PLC)
The stages a product goes through during
its life including introduction, growth,
maturity, and decline
maturity
growth
decline
intro

3. STAGE ONE (1)
intro
INTRODUCTION – a NEW product is introduced into the market
Basic Goals:
Create awareness for the new product
Gain initial acceptance
Develop a few good channels of distribution
Strong promotion is needed to inform potential buyers of
the product's availability. Profits in the introductory stage
are non-existent because sales volume is low and
promotional expenses are high

4. STAGE TWO (2) GROWTH – if a product has been launched growth
successfully, sales will begin to increase rapidly. New
customers are beginning to purchase the product
and initial customers are making repeat purchases
Competitors are attracted into the market with similar
offerings who add features and options so their product is better than the first (Honda / Hyundai)
Products become more profitable
Distribution channels may be widened (more places
offering product for purchase)

5. STAGE THREE (3)
maturity
MATURITY – product survived the earlier stages. Tends to spend the longest in this phase (typically the maturity stage has the greatest number of competitors which can cause price wars) (Cable)
There is very little growth in new customers; therefore,
competitors are working to steal market share from each other (prices begin to decline)
Many discounts/promotional pricing strategies are used during this phase. Features/Benefits adopted by all companies
Most money is spent on Promotion during this stage

6. STAGE FOUR (4) DECLINE – final stage where sales and profits
fall off rapidly and competitors become more
cost focused
Customer tastes may have changed or more innovative products are introduced
Products are often dropped from a company’s product line during this phase
Prices are reduced to continue to sell product

7. Check for Understanding
With your eyes closed, indicate agree (thumbs up) or disagree (thumbs down)
Product is being discontinued, so price greatly reduced
Decline Stage
(Thumbs - UP)

8. Check for Understanding
With your eyes closed, indicate agree (thumbs up) or disagree (thumbs down)
Lucky Brand is going to begin making running shoes
Growth Stage
(Thumbs DOWN - Introductory Stage)

9. Check for Understanding
With your eyes closed, indicate agree (thumbs up) or disagree (thumbs down)
There are now a few competitors who are selling the product but have added features to their product to make it different than the original
Growth Stage
(Thumbs - UP)

10. Check for Understanding
With your eyes closed, indicate agree (thumbs up) or disagree (thumbs down)
Lucky Brand is going to start making running shoes
Growth Stage
(Thumbs DOWN – Introductory Stage)

11. Check for Understanding
With your eyes closed, indicate agree (thumbs up) or disagree (thumbs down)
Not much profit made from product. Most of the product’s profit goes toward promoting it
Introductory Stage
(Thumbs - UP)

12. Check for Understanding
With your eyes closed, indicate agree (thumbs up) or disagree (thumbs down)
Most of the product’s profit goes toward promoting it
Introductory Stage
(Thumbs DOWN - Maturity Stage)

13. Check for Understanding
With your eyes closed, indicate agree (thumbs up) or disagree (thumbs down)
Product spends the most time in this stage and has the most competitors
Maturity Stage
(Thumbs – UP)