1. Target I can explain the characteristics of each stage of the product life cycle.

2. Product Life Cycle

5. Introduction Low Sales Losses may occur Profits Few Competition

6. Marketing Mix Elements Branding and quality level is established. Product: Low or high Pricing: Selective until consumers show acceptance of the product. Place : Seeks to build awareness Promotion:

7. Growth Rapidly Rising Sales Very high profits Profits Growing Number Competition

8. Marketing Mix Elements Additional features/services may be added. Product: Maintained Pricing: Channels are added as demand increases. Place: Aimed at a broader audience. Promotion:

9. Maturity Sales Peak Sales Declining profits Profits High and stable number Competition

10. Marketing Mix Elements Differentiate the product from that of competitors. Product: May be lower because of the new competition. Pricing: More intensive Place: Emphasizes product differentiation. Promotion:

11. Decline Falling Sales Sales Profits fall, possible losses Profits Declining number Competition

12. Decline Strategies Maintain the product, possibly rejuvenating it by adding new features and finding new uses. Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment. Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.