Product Life Cycle

PRODUCT Life Cycle Sameer Mathur, Ph.D. Assistant Professor (Marketing), McGill University www.smathur.com

FREE TEACHING RESOURCES ON MARKETING MANAGEMENT at www.smathur.com/teaching.php Over 100,000 views by Management students and business professionals from over 90 different countries These presentations are part of Sameer Mathur's teaching portfolio. They are free to view or download for non-profit, academic use. Disclaimer: These teaching materials have been compiled from multiple, non-credited sources for non-profit, academic use. Copyright is retained by the original content creators. Sameer Mathur , Ph.D . Assistant Professor (Marketing) Web: www.smathur.com Email : [email_address] Twitter: @ProfessorMathur Facebook: Click Here

Product Life Cycle

REV Summary of

Product Development

Marketing Strategies: Introduction Stage Sales Costs Profits Marketing Objectives Product Price Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus basis Distribution Build selective distribution Advertising Build awareness among innovators, early adopters

Toyota Hybrid : Introductory stage product

Sales Costs Profits Marketing Objectives Product Price Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Penetration Pricing Distribution Build intensive distribution Advertising Build awareness in the mass market Marketing Strategies: Growth Stage

A Product at the Growth Stage

Sales Costs Profits Marketing Objectives Product Price Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Distribution Build more intensive distribution Advertising Stress brand differences and benefits Marketing Strategies: Maturity Stage

A product at the Mature Stage

Marketing Strategies: Decline Stage Sales Costs Profits Marketing Objectives Product Price Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Distribution Go selective: phase out unprofitable outlets Advertising Reduce to level needed to retain hard-core loyal customers

Alternative product life cycles

Apple Inc. – 2008 Revenues http://www.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864

Product Life Cycle of iPods iPod Nano (Sept 2005) iPod Touch (Sept 2007) iPod Shuffle (Jan 2005) iPod Classic (Oct 2001) http://www.apple.com/ca/ipod/compare-ipod-models/

Timeline of iPod Classic http://en.wikipedia.org/wiki/IPod_Classic http://www.apple.com/ipodclassic/

Timeline of iPod Classic http://en.wikipedia.org/wiki/IPod_Classic

Product development
Introduction
Growth
Maturity
Decline
Which stage of the PLC is the iPod Classic?

Timeline of iPod Touch http://en.wikipedia.org/wiki/IPod_Touch http://www.apple.com/ipodtouch/

Marketing Mix -- iPod Touch
Product: “A great pocket computer”. Music, movies, games, apps at fingertips.
Price: 8GB : $249; 32GB: $319; 64GB: $429
Promotion: Advertisement on TV, billboards, magazines. Focus on numerous applications.
Place: Online, Apple Store, Future Shop, Best Buy, Costco.
http://www.apple.com/ca/ipod/compare-ipod-models/

Product development
Introduction
Growth
Maturity
Decline
Which stage of the PLC is the iPod Touch?

Readings P278, Product Life Cycle P278, Introduction Stage P280, Growth Stage P281, Maturity Stage P281, Decline Stage P282, Some Dimensions of the Product Life Cycle P284, Managing the Product Life Cycle P284, Role of a Product Manager P284, Modifying the Product P285, Modifying the Market P286, Repositioning the Product P412, The Changing Nature of Retailing P414, The Wheel of Retailing P414, The Retail Life Cycle P432, The Product Life Cycle

FREE TEACHING RESOURCES ON MARKETING MANAGEMENT at www.smathur.com/teaching.php Over 100,000 views by Management students and business professionals from over 90 different countries These presentations are part of Sameer Mathur's teaching portfolio. They are free to view or download for non-profit, academic use. Disclaimer: These teaching materials have been compiled from multiple, non-credited sources for non-profit, academic use. Copyright is retained by the original content creators. Sameer Mathur , Ph.D . Assistant Professor (Marketing) Web: www.smathur.com Email : [email_address] Twitter: @ProfessorMathur Facebook: Click Here

Sameer Mathur , Ph.D . Assistant Professor (Marketing) Web: www.smathur.com Email : [email_address] Twitter: @ProfessorMathur Facebook: Click Here RELATED SLIDES CLICK BELOW TO LEARN ABOUT: 1. Branding 2. New Product Development POPULAR SLIDES CLICK BELOW TO LEARN ABOUT: 1. Segmentation and Targeting 2. Positioning, Perceptual Maps

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Product Life Cycle

by Sameer Mathur on Oct 23, 2010

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Product Life Cycle — Presentation Transcript