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:Few: trial of trial of early earlyadoptersadopters

Growing adopters:Growing adopters: trial of trial of product/service product/service

Entry of Entry of competitorscompetitors

Growing selectivityGrowing selectivity of purchase of purchase

May be manyMay be many

Saturation ofSaturation of users users

Repeat purchaseRepeat purchase reliance reliance

Fight to maintainFight to maintain share share

Drop-offDrop-offin usagein usage

Exit of someExit of somecompetitorscompetitors

DevelopmentDevelopment GrowthGrowth MaturityMaturity DeclineDecline

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