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