1. The Product Life Cycle

2. Product Life Cycle Four Stages a Product Goes Through in Life:
Introduction
Growth
Maturity
Decline
Maturity
Growth
Decline
Introduction

3. INTRODUCTION Stage Company’s Efforts Focus On:
Promotion (Letting People Know)
Production (Efficiencies, Bugs)
Make First Run Pieces
Establish Manufacturing Procedures
GOAL: Draw Attention to New Product
the first time customers become aware

4. INTRODUCTION Stage Impact on Marketing Mix (4 P’s):
PRODUCT – Branding and Quality are Established. Patents and Trademarks are Obtained.
PRICING – May be Low (penetration pricing)
or High (recover developmental costs)

5. INTRODUCTION Stage Impact on Marketing Mix (4 P’s) (cont.) :
PLACE – Company is Selective Until Customers Show Acceptance of Product
PROMOTION – Costs at their Highest. Focus on New Product Benefits Build Product Awareness.

6. GROWTH Stage Sales and Profit are Increasing
Much of Target Market Knows of
and Buys the Product
Competition is Aware and Offers New Product

7. GROWTH Stage Impact on Marketing Mix (4 P’s):
PRODUCT – Quality Maintained. Additional Features and Services Added. New Models May be Introduced.
PRICING – Maintained Company is Enjoying Increased Demand with Relatively Little Competition.

8. GROWTH Stage Impact on Marketing Mix (4 P’s) (cont.) :
PLACE – Channels (outlets) Added as Demand Increases.
PROMOTION – Aimed at Broader Audience. FOCUS Now on Consumer Satisfaction

9. MATURITY Stage Sales Level Off or Slow Down Much More Competition
Much of Target Market Already Owns the Product.

10. MATURITY Stage Impact on Marketing Mix (4 P’s):
PRODUCT – Features Enhanced. Differentiate From Competition.
PRICING – May Be Lowered a Little.

11. MATURITY Stage Impact on Marketing Mix (4 P’s) (cont.) :
PLACE – Becomes More Intensive Incentives May Be Offered to Encourage Sales of Competition.
PROMOTION – Expenses May Climb. Focus On Differentiating Product From Competition.

12. DECLINE Stage Sales Fall. Profits May Be Smaller Than Costs.
Company Must Make Choices
Sell or License the Product (delete)
Recommit to the Product Line
Discount the Product
Regionalize the Product
Modernize or Alter the Product

13. DECLINE Stage Sell or License the Product Recommit to the Product Line
Ex. Power Rangers by Japanese.
Recommit to the Product Line
Find New Use for Product
EX. Geltin Dessert Mixes to Finger Jell-O
Discount the Product
Permanent Repositioning to Discount Good.
Example: Pepsodent Toothpaste.

14. DECLINE Stage Regionalize the Product
Removing from Where Sales are Poor and Only Selling Where Strong Customer Loyalty.
EX. Nabisco Foods Only Sells “My-T-Fine” Soup in Northeastern States.
Modernize or Alter Product Offering
Complete Redesign (Risk - Costs Money)
EX. Lavoris Mouthwash was just Red, Green or Blue. Redesign to Clear…Whole New Young Market That Never Bought Original