PRODUCT LIFE CYCLE MARKETING 1 PRODUCT LIFE CYCLE

PRODUCT LIFE CYCLE MARKETING 1

PRODUCT LIFE CYCLE ØThe product life cycle represents the stages that a product goes through during its life. ØMarketers must adjust their product mix and their marketing strategies to ensure continued sales.

PRODUCT LIFE CYCLE Stage 1: Introduction ØPromote consumer awareness ØEducate, Inform and encourage customers to try the new product ØUsually no or low profit Stage 2: Growth ØSales start to grow rapidly ØCompetitors enter the marketplace ØPersuasive advertising may be used ØPrices may be reduced

PRODUCT LIFE CYCLE Stage 3: Maturity Stage ØSales slow down, Profits may start to fall ØAdvertising costs at its highest to sustain growth ØRepeat customers may try a new product and stop buying ØNew buyers may be difficult to attract Stage 4: Decline ØSales are steadily decreasing Ø Product loses appeal ØAdvertising is reduced ØProduction may be stopped, decisions made to delete or keep the product with little or no marketing support

PRODUCT LIFE CYCLE The product life cycle of a Barbie Doll Evolution of Coca Cola Evolution of Nike

PRODUCT EXAMPLES 1994 – Sony Playstation – ØSony created a pure gaming system with Play. Station. ØThe CD-ROM format let Sony sell Play. Station as an upscale piece of technology perfect for the college dorm room. ØBy making games for adults, Play. Station helped the game industry balloon even larger. ØIt was the first gaming platform to sell over 100 million units

PRODUCT EXAMPLES 1998 – MP 3 Player ØThree years before Apple dominated the market with the i. Pod, Sae. Han Information Systems introduced the MPMan in 1998 ØIt had 64 MB of memory, enough for a whopping 18 songs. About 1 and a half albums. ØMP – stands for-MPEG – Motion Picture Experts Group Ø 3 Stands for: Audio Layer 3. An audio compression format which compresses the sound to around 1/12 the original size of it's original format.

PRODUCT LIFE CYCLE VIDEO PROJECT • Work with a partner • Identify a product older than 1999 • Take product through each stage of life cycle • Create PLC video for your product using i. Pad (use Barbie video & other You. Tube videos as samples) • Save/Download movie to i. Pad (see Mrs. Sterling next door for HELP) • Submit video via email or SHARE with hvandyke@lcps. org