Intro• What is a product that has been around for as long as you can remember?• How has it changed over the years?
Product Life Cycle• Product Life Cycle represents the stages that a product goes through during its life.• There are 4 Stages of Life Cycle:• 1. Introduction• 2. Growth• 3. Maturity• 4. Decline
Product Life Cycle• What are the goals of the Introduction Stage?– To increase product awareness– Get the customer’s attention thru promotion– Lots of special promotion• During Growth Stage:– Customers are aware of product, sales increase– Companies focus on customer satisfaction– Competition starts from other companies
Product Life Cycle• What happens during Maturity Stage? – The product’s sales level off. More money is spent on competition during this stage.• Discussion: Have class to choose a mature product• Discuss how company is managing: 1. Competition 2. Advertising 3. Distribution – Is it only sold at 1 place 4. Other Strategies they have put in place
The life product cycle model Development Growth Maturity Decline Few: Growing adopters: Growing selectivity Saturation of Drop-off trial of trial of of purchase users in usage early product/service Repeat purchase adopters reliance Entry of May be many Fight to maintain Exit of some competitors share competitors
Product Life Cycle• During the Decline Stage: – Sales start to decline. A company must decide to alter the product, discount, or discontinue product.
Product Life Cycle• Sources: –Marketing Essentials –Marketingteacher.com –Google