6. Product Life Cycle
III. Characteristics
1. Introduction Stage
◦ Slow sales growth.
◦ Products need to establish
themselves in the market
place.
◦ Negative or low profits.
7. Product Life Cycle
III. Characteristics
2. Growth Stage
◦ Rapid sales growth.
◦ Early adapters like the
product & additional
consumers start buying it.
◦ Sales rise much faster than
expenditures in promos.
8. Product Life Cycle
III. Characteristics
3. Maturity Stage
Three Phases :
1) Growth – Sales growth starts to
slow; new competitive forces
emerge.
2) Stable – Reached market
saturation
3) Decaying Maturity – consumers
begin switching to other products.
9. Product Life Cycle
III. Characteristics
4. Decline Stage
◦ End of the product life.
◦ Period of the market's sale
are significantly below the
peak and are declining.
10. Product Life Cycle
IV. Common Product
Life-Cycle Patterns
Growth-Slump-Maturity
sales grow rapidly
when product is first
introduced, falls, &
stabilizes
11. Product Life Cycle
IV. Common Product
Life-Cycle Patterns
Cycle-Recycle
- often describes the
sales of new drugs
12. Product Life Cycle
IV. Common Product
Life-Cycle Patterns
Scalloped
- succession of life-cycles
based on discovery of new
charcteristics, uses or users.
13. Summary
Products are born. They live and they die.
Periodic examination of products is appropriate because
strategies change as products move through their life cycle.
