1. Product Life Cycle and Positioning

2. Lesson Objectives Identify the 4 stages of the product life cycle Describe product positioning techniques

3. Product Life Cycle The stages a product goes through in its life

4. 1. Introductory Stage High promotion Increase awareness High production costs Least profitable stage

5. 2. Growth Stage Increasing sales and profits Competition emerges Modifications may be introduced

6. 3. Maturity Stage Sales slow or level off Most money spent combating competition

7. 4. Declining Stage Sales/profits may fall New strategy chosen: – Sell or license product – promotion strategy – Find new product uses – Discount – pricing strategy – Regionalize – place strategy – Modernize or alter – product strategy

8. Product Positioning Efforts a business makes to identify, place and sell its products. Attempt to create an image for the product.

9. Positioning Strategies Price (lowest price?) Quality (best quality?) Features/Benefits (filling a need) Relating to the competition Relating to other products in the line

10. Category Management Process that manages product categories as individual business units Category manager Planagram – Computer-developed diagram – product display – Maximizes product’s potential

13. Product Life Cycle and Positioning