1. Marketing
Chapter 8

2. Product Life cycle
Why is it important?

3. Product Life Cycle
Shows the path a typical new product takes from its inception to its discontinuation.
It describes the stages a product goes through from its introduction, through its growth until it is mature and then finally its decline.
Most products and services pass through various stages over time. These stages make up a life cycle. Although the rates of change, and the length of each stage may vary, most life cycles follow roughly the same pattern.
Entrepreneurs need to know as much as they can about their competition and probable life cycle of their product or service. This knowledge will help them identify any competitive advantages that their venture might have.

4. Product Life Cycle When the product or service will first appear.
Stage 1: Introduction
Stage 2: Growth
When the product or service will first appear.
The product or service will show a profit and its sales will increase.
There will be little or no competition for the product/service.
Product or service establishes a presence in the marketplace.
Some competition is at its peak.
The promotion and advertising must be put into full gear.

5. Product Life Cycle
Stage 3: Maturity
Stage 4: Decline
The product or service is at the peak of popularity.
Competition is at its peak.
The promotion and advertising must be put into full gear.
Sales begin to drop on the product/service.
Competitors already left the scene.
Company must decide whether to abandon the product
Decline -(usually after 3 months of decline the service/product is abandoned).

6. Product Life Cycle
This is a typical product life cycle. But the product life cycle is not always typical. There are also non-traditional product life cycles.

7. Non-traditional Product Life Cycles
Fad:
A product or service is extremely popular for a very brief period of time.
Becomes unpopular and just as quickly vanishes from the marketplace.
Very risky, timing is everything to make money.

8. Fad Product Life Cycle

9. Non-traditional Product Life Cycle
Trends:
A mass movement toward a particular style or value which can result in a number of products that begin to take on a traditional product life cycle.
Lasts longer than a fad (MP3 Player, digital cameras).

10. Trend Product Life Cycle

11. Non-traditional Product Life Cycle
Niche Markets:
Small section of the market that is dominated by one company.
Limited if any competition.
Very short growth stage that leads to a solid but not financially spectacular maturity stage (pet hotel).

12. Non-traditional Product Life Cycle
Seasonal Markets:
Marketers can anticipate periods of high or low demand.
They will look to create opportunities outside of their usual season to create value for their product in consumers’ minds (Golf Course).

13. Product Life Cycle Assignment
Make a table with a column for each stage of the Product Life Cycle.  
List each of the following products under its current stage of the Product Life Cycle.
DVD Players
Blue-Ray Player
Cabbage Patch Kids
Kellogg’s Cereal
Coca-cola
Typewriters
iPod
Faxes
Cotton T Shirts
Credit Cards
Canada Postal Service  
Add at least two more products or services at each stage of the cycle.