Product Life Cycles
• Product life cycles describe the
changes in consumer demand over a time.
No product can be in demand...
Product Life Cycles
maturity
decline
s
e
l
a
S

growth
decision
point

introduction
Time

• The traditional product life c...
Product Life Cycles
• Introduction Stage
•

When a product is first introduced
a product launch occurs. It may occur
regio...
Product Life Cycles
• Introduction Stage
•

Launching a new product is very
expensive, so initially the price is high.
Cos...
Product Life Cycles
• Introduction Stage
• Who buys at this stage?
•
Curious people, those
who always want new
things firs...
Product Life Cycles
• Introduction Stage
•
Main purpose of marketing is to
inform the consumer about new
products and to e...
Product Life Cycle
• Products currently in introduction
Growth Stage

s
e
l
a
S

growth

Time
Product Life Cycles
• Growth Stage
•

After adopters find and use a
product, others will follow. The product
is visible, c...
Product Life Cycles
• Growth Stage
• The faster a product reaches the growth
stage, the sooner it starts making a profit.
...
Product Life Cycles
• Growth Stage
• As competitors enter the market,
companies strive to maintain their
market share: the...
Growth Stage
Product Life Cycles
• Maturity Stage
• The period during which
sales start to level off

s
e
l
a
S

maturity

15

Time

Un...
Product Life Cycles
• Maturity Stage
•
Marketers keep the brand
name in front of consumers. Often
the success and longevit...
Product Life Cycles
• Maturity Stage
• Because major costs have been
recuperated and the cost of sales and
distribution is...
Product Life Cycles
• Maturity Stage
• Often times companies will take this profit
to develop new products and product
lau...
Maturity Stage (LONG TIME)
Maturity Stage (Shorter Time)
Product Life Cycles
• Decline Stage
• Occurs when a company cannot find new
consumers for their product. Profits decrease;...
Product Life Cycles
• Decline Stage
• If it is a temporary decline
– it may be reversed by a small price
– change in the d...
Decline Stage

23

Unit 2
Product Life Cycles
• Decision Point Stage
The final stage of the product life cycle.
Marketers must make important decisi...
Product Life Cycles
• Decision Point Stage
• A product may be reformulated,
repackaged, and reintroduced.
• Most often mai...
Vijay nishad ( roll no.23 )
Vijay nishad ( roll no.23 )
Vijay nishad ( roll no.23 )
Upcoming SlideShare
Loading in …5
×

Vijay nishad ( roll no.23 )

540 views

Published on

Published in: Business, Technology
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
540
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Vijay nishad ( roll no.23 )

  1. 1. Product Life Cycles • Product life cycles describe the changes in consumer demand over a time. No product can be in demand forever. Trends, technology and lifestyles change, which affects consumer demand. 3 Unit 2
  2. 2. Product Life Cycles maturity decline s e l a S growth decision point introduction Time • The traditional product life cycle consists of five stages. 4 Unit 2
  3. 3. Product Life Cycles • Introduction Stage • When a product is first introduced a product launch occurs. It may occur regionally, provincially, or nationally, depending on predicted demand. 5 Unit 2
  4. 4. Product Life Cycles • Introduction Stage • Launching a new product is very expensive, so initially the price is high. Costs involved include: machinery, set-up, training, promotion, storage, packaging, market research. 6 Unit 2
  5. 5. Product Life Cycles • Introduction Stage • Who buys at this stage? • Curious people, those who always want new things first: - early adopters - trendsetters. 7 Unit 2
  6. 6. Product Life Cycles • Introduction Stage • Main purpose of marketing is to inform the consumer about new products and to establish the value equation as early as possible. 8 Unit 2
  7. 7. Product Life Cycle • Products currently in introduction
  8. 8. Growth Stage s e l a S growth Time
  9. 9. Product Life Cycles • Growth Stage • After adopters find and use a product, others will follow. The product is visible, consumers see/hear others use it. Reputation spreads through word of mouth and advertising. 11 Unit 2
  10. 10. Product Life Cycles • Growth Stage • The faster a product reaches the growth stage, the sooner it starts making a profit. • The first company to enter a market will pay the most for development and advertising, but it will have a major advantage: No competition. 12 Unit 2
  11. 11. Product Life Cycles • Growth Stage • As competitors enter the market, companies strive to maintain their market share: the company’s sales as a percentage of the total for the market. 13 Unit 2
  12. 12. Growth Stage
  13. 13. Product Life Cycles • Maturity Stage • The period during which sales start to level off s e l a S maturity 15 Time Unit 2
  14. 14. Product Life Cycles • Maturity Stage • Marketers keep the brand name in front of consumers. Often the success and longevity of the product is highlighted. 16 Unit 2
  15. 15. Product Life Cycles • Maturity Stage • Because major costs have been recuperated and the cost of sales and distribution is low, products usually make large profits during this stage. 17 Unit 2
  16. 16. Product Life Cycles • Maturity Stage • Often times companies will take this profit to develop new products and product launches. • EXAMPLE: Disney took profits from its amusement parks to launch a cruise ship line. This also expands their brand name into a new market. 18 Unit 2
  17. 17. Maturity Stage (LONG TIME)
  18. 18. Maturity Stage (Shorter Time)
  19. 19. Product Life Cycles • Decline Stage • Occurs when a company cannot find new consumers for their product. Profits decrease; marketers try to find the reason for the decline. s e l a S decline 21 Time Unit 2
  20. 20. Product Life Cycles • Decline Stage • If it is a temporary decline – it may be reversed by a small price – change in the design – new ad campaign – Change in the packaging 22 Unit 2
  21. 21. Decline Stage 23 Unit 2
  22. 22. Product Life Cycles • Decision Point Stage The final stage of the product life cycle. Marketers must make important decisions regarding a product’s future. decision point s e l a S • 24 Time Unit 2
  23. 23. Product Life Cycles • Decision Point Stage • A product may be reformulated, repackaged, and reintroduced. • Most often maintenance of a product involves new promotion and new pricing. 25 Unit 2

×