1. IDC 4O: Sports and
Entertainment
Marketing
Chapter 5:
Product and Price Decisions: Sports

2. Product Life Cycle
 The traditional product life cycle consists of
5 parts: product
introduction, growth, maturity, decline, and
decision point

3. Introduction Stage
 Sales are low as the new idea is first introduced to
the market.
 Customers may not be aware of the product’s
benefits and features and may not be aware of
the product itself.
 Most companies experience losses during the
market introduction stage.
 A lot of money is spent on promotion and product
development to build product awareness.
 Promotion is aimed at innovators and early adopters.
 Example: Tablet/Phones, Schticky,

4. Growth Stage
 Rapid growth in sales and profits
 More product awareness
 Competitors see the opportunity and enter the
market.
 Some competitors will copy the product or may try to
make it better or more appealing to other target markets.
 The new entries result in more product variety.
 Promotion is aimed at a broader audience.
 More distribution channels are established
Example: SmartPhones, 3d Tv’s, BluRay
players, HDTV

5. Maturity Stage
 Sales begin to level off.
 The competition gets tougher as more
competitors have entered the market.
 Increased competition creates a downward
movement in prices.
 Industry profits are largest, but it is also when
industry profits begin to decline.
 Promotion is targeted to create brand
differentiation.
Example: Coca-Cola, Fibreglass Hockey sticks,

6. Decline Stage
 Sales begin to decline.
 New products replace the old.
 Firms will often try to use extension
strategies.
 Companies may be able to keep some
sales by appealing to their most loyal
customers.
Example: SUV’s, DVD’s, WII,

7. Decision Point
 May decide to reformulate, repackage or
reintroduce a “new and improved” product
 New promotions and pricing
 Enhance the product by finding new uses
or by adding new features.
 Discontinue: sell the product to another
firm, or liquidate inventory
Example: VCR, Tube TV, DVD’s