1. Product Life Cycle

2. Product Life Cycle Introduction
Product is introduced to the marketplace.
Heavy on start-up costs
Growth
Demand increases
Sales grow
Competitors may enter the market
Most profitable stage.
Maturity
Sales begin to decline as competitors take market share
Focus on reducing costs
Tinker w/ product.
Decline
Product is withdrawn from the market
Costs savings taken
Search for alternative markets or new products
Not in Chapter, but present it anyway.

3. Product Life Cycle Maturity
Sales begin to decline as competitors take market share
Focus on reducing costs
Tinker w/ product.
Decline
Product is withdrawn from the market
Costs savings taken
Search for alternative markets or new products
Not in Chapter, but present it anyway.

4. How Organizations Respond to Uncertainty
Defenders
experts at producing and selling narrowly defined products
“Let’s stick with what we do best, avoid other involvements or distractions…”
Prospectors
focus on developing new products and in seeking out new markets, rather than waiting for things to happen
“Let’s create our own opportunities, not wait for them to happen”
Defenders
“Let’s stick with what we do best, avoid other involvements
experts at producing and selling narrowly defined products
Prospectors
“Let’s create our own opportunities, not wait for them to happen”
focus on developing new products and in seeking out new markets, rather than waiting for things to happen

5. How Organizations Respond to Uncertainty
Analyzers
let other organizations take the risks of product development and marketing
“Then we will replicate what seems to work best”
Reactors
make adjustments only when finally forced to by environmental pressures
“Let’s wait until there’s a crisis, then we’ll react”
Analyzers – “Let others take the risks of innovating, & we’ll imitate what works best”
Reactors – “Let’s wait until there’s a crisis, then we’ll react”

6. Question?
XYZ Company scans it environment regularly. However, it does not tend to seek opportunities outside its present markets. This company would most likely be a (n):
Reactor
Prospector
Analyzer
Defender
The correct answer is “D” - defender
Page: LO: 1 Difficulty: Moderate
AACSB: 6 BT: Application

7. Let’s Practice Planning
You and your team of 2/3 have been asked to review a product for your company.
The product is in or entering the decline stage of the product life cycle…..
Your job!
FIX IT!
You will set up your project team
Collectively write a report (PPT) answering the questions

8. MARKETING ACTIVITY TIME!
You and your team have been asked to review a product for your company.
In what stage of the product life cycle is your product?
Maturity or Decline
What type of competition can you expect for the product?
Name at least 4 direct & 4 indirect competitors
Will profits likely increase, decrease or stay the same?
Products
Oranges for Tropicana (Pepsi)
Shoelaces for Stride Rite (Collective Brands)
Stationary for Hallmark Cards
Landline Phones for Uniden
Sofas for La-Z-Boy
Jeans for Gap, Inc.
Chicken sandwich for Chic-fil-a
Frisbees for Toys-R-Us
Procedure
Go over this slide and assign students to a product.
Give out Project Instructions and Rubric.
Allow students to work for one day
Show Design PowerPoint
Allow students to refine presentation using good principles of design

9. MARKETING ACTIVITY TIME!
You and your team have been asked to review a product for your company.
What type of changes would you recommend should the company want to tinker with the product?
Develop 2 solid alternatives to reboot
Packaging or usefulness?
Can the product be altered? Significantly?
Which reaction to change is driving your decision?
Reaction, Prospector, Analyzer, or Defender
What will be your target market for the rebooted part?
New audience
Same users but with new product or version
Products
Oranges for Tropicana (Pepsi)
Shoelaces for Stride Rite (Collective Brands)
Stationary for Hallmark Cards
Landline Phones for Uniden
Sofas for La-Z-Boy
Jeans for Gap, Inc.
Chicken sandwich for Chic-fil-a
Frisbees for Toys-R-Us
Procedure
Go over this slide and assign students to a product.
Give out Project Instructions and Rubric.
Allow students to work for one day
Show Design PowerPoint
Allow students to refine presentation using good principles of design