1. 3.01-B Product Life Cycles

2. Introduction
What is a product that has been around for as long as you can remember?
How has it changed over the years?

3. 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

4. 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

5. 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

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

7. Product Life Cycle During the Decline Stage:
Sales start to decline. A company must decide to alter the product, discount, or discontinue product.

9. Product Life Cycle Sources: Marketing Essentials Marketingteacher.com
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