3.01-B Product Life Cycles

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

Few: trial of early adopters Growing adopters: trial of product/service Entry of competitors Growing selectivity of purchase May be many Saturation of users Repeat purchase reliance Fight to maintain share Drop-off in usage Exit of some competitors Development Growth Maturity Decline The life product cycle model

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