Target

• I can explain the characteristics of each stage of the product life cycle.

Product Life Cycle

Introduction

•LowSales

•Losses may occurProfits

•FewCompetition

Marketing Mix Elements• Branding and quality level is

established.Product:

• Low or highPricing:

• Selective until consumers show acceptance of the product.Place:

• Seeks to build awarenessPromotion:

Growth

•Rapidly RisingSales

•Very high profitsProfits

•Growing NumberCompetition

Marketing Mix Elements• Additional features/services may be

added.Product:

• MaintainedPricing:

• Channels are added as demand increases.Place:

• Aimed at a broader audience.Promotion:

Maturity

• Sales PeakSales

• Declining profitsProfits

• High and stable numberCompetition

Marketing Mix Elements• Differentiate the product from that of

competitors.Product:

• May be lower because of the new competition.Pricing:

• More intensive Place:

• Emphasizes product differentiation.Promotion:

Decline

• Falling SalesSales

• Profits fall, possible lossesProfits

• Declining numberCompetition

Decline Strategies

• Maintain the product, possibly rejuvenating it by adding new features and finding new uses.

• Harvest the product - reduce costs and continue to offer it, possibly to a loyal niche segment.

• Discontinue the product, liquidating remaining inventory or selling it to another firm that is willing to continue the product.