1. Product Life Cycle
Marketing I

2. Product Life Cycle
Product Life Cycle – stages a product goes through during its life in the marketplace
4 stages: introduction, growth, maturity, decline
Stage 1: Introduction
Occurs when product first enters marketplace
Promoting consumer awareness
Getting customers to try new product
Millions of dollars spent to educate consumers
Major task: getting product in the marketplace

3. Product Life Cycle Stage 2: Growth Stage 3: Maturity Stage 4: Decline
More competitors enter the marketplace
Adding distribution outlets is important
Product improves: adding flavors, features, etc.
Stage 3: Maturity
Sales begin to slow down for the product
Repeat customers stop buying the product
Attracting new buyers is a challenge
Stage 4: Decline
Sales and profits begin to drop
Little to no marketing support
Company may drop product from their product line

5. Manage the Life Cycle Product Modification: Market Modification:
Changing a product’s characteristics (package, features, appearance, quality)
Companies market this “new” product to increase sales
Market Modification:
Strategy to find new customers
Modify the product to create new target market
Encourage current customers to use the product more
Repositioning:
Change product’s image in relation to competitor’s image
A change in any of the 4 P’s (Marketing Mix)

6. Conclusion Product Life Cycle: Management of Product Life Cycle:
Introduction, Growth, Maturity, Decline
Management of Product Life Cycle:
Product Modification, Market Modification, Repositioning

7. In-class Project
Take a school store product through the 4 stages of the Product Life Cycle (IN DETAIL):
introduction, growth, maturity, decline
Explain IN DETAIL how you can Manage the Life Cycle:
Product Modification, Market Modification, Repositioning