3. • Physical configuration
• Associated services
• Package and brand name
• Product mix
• Product life cycle
• EXPLICIT CHARACTERISTICS • Implicit characteristics
4.
5. • Installation
• Accessory equipments
• Raw material
• Component parts and materials
• Supplies
• Services
6. Product
features
• Replacement
rate
• Gross margin
• Adjustment
• Time of
consumption
• Search time
Red goods
• High
• Low
• Low
• Low
• Low
Orange goods
• Medium
• Medium
• Medium
• Medium
• Medium
Yellow goods
• Low
• High
• High
• High
• High
Modern products classification
8. Introduction Stage of the PLC
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
Distribution Build selective distribution
Advertising Build product awareness among early
adopters and dealers
Editor's Notes
The Product Life-Cycle
This CTR corresponds to Figure 9-2 on p. 288 and relates to the material on pp. 287-293.
Instructor’s Note: This CTR can be used to overview the life cycle concept. Strategies appropriate for each stage are discussed on the following CTRs.
Introduction. In this stage marketers spend heavily on promotions to inform the target market about the new product's benefits. Low or negative profits may encourage the company to price the product high to help offset expenses. companies can concentrate on skimming strategies to generate high profits now or on penetration strategies to build market share and dominant the market for larger profits once the market stabilizes.
