1. Sustaining Product Sales Chapter 30.2
Product Planning
Sustaining Product Sales
Chapter 30.2

2. What is a product life cycle?
A representation of the stages that a product goes through during its life
There are 4 stages of the life cycle
Introduction
Growth
Maturity
Decline

3. The Product Life Cycle Dollars Maturity Sales Growth Decline
Introduction
Profit
Obsolete
Time

4. Managing the Introduction
Company is focused on
Promotion and Production
Getting the customers attention
Building sales and customer awareness
Costs in this stage are high, therefore this is the least profitable stage of the cycle

5. Managing the Growth There is an increase in sales and profits
Most of the target market knows about and buys the product
Company now focuses on
Customer satisfaction
Competing with rival companies

6. Managing the Maturity Sales level off and slow down
More competition exists
Most of target market owns the product
Company starts to think of ways to improve the product

7. Managing the Decline Sales fall and there is profit loss
Ways to keep the product alive
Sell or license the product
Recommit to the product line – try to increase advertising and promotion
Discount the product
Regionalize the product – sell only in areas with strong customer loyalty
Modernize or alter the product

8. Product Positioning
The efforts a business makes to identify, place, and sell its products in the marketplace
The goal is to set the product apart from the competition
A number of strategies can be used to position products in the marketplace
Positioning by price and quality
Positioning by features and benefits
Positioning in relation to the competition
Positioning in relation to other products in the line

9. Positioning by Price and Quality
A company may offer an economy line, a mid-priced line, and a luxury line
Stresses high price as a symbol of quality or low price as an indication of value
Economy Line
Mid-priced Line
Luxury Line

10. Positioning by Features and Benefits
Products are often associated with a feature, attribute, or consumer benefit

11. Positioning in Relation to Competition
Some businesses position their products to compete directly with the products of other companies VS VS

12. Positioning in Relation to Other Products in a Line
Individual products may be positioned in relation to other products in the same line
Zire
Tungston
Trio
Original Palm Pilot
Additional Features
MP3 player
View Photos
Play Video Clips
Additional Features
Surf the Web
Additional Features
Cell Phone Service

13. Repositioning
When a product reaches the decline stage of the product life cycle it must be changed – or repositioned
Repositioning – changing the identity or image of a product to redirect or expand the target market

14. Examples: Pledge
Pledge Commercial

15. Examples: Cheerios
Cheerios Commercial

16. Category Management
A process that involves managing product categories as individual business units
A category may include a group of product lines with the same target market and distribution channels
Goal – to put manufacturers and retailers in closer touch with customer needs

17. Planograms
A computer developed diagram that shows retailers how and where products should be displayed on the shelf…maximizing the products potential

18. Assignment Get the Orange Textbooks
Complete the questions from Chapter 30.2
Questions 1-3 on page 647
Questions 7, 8, 9, 10, 11 on page 649