The Product Life Cycle Product Life Cycle Four

Product Life Cycle Four Stages a Product Goes Through in Life: n Introduction n

INTRODUCTION Stage Company’s Efforts Focus On: n Promotion (Letting People Know) n Production (Efficiencies,

INTRODUCTION Stage Impact on Marketing Mix (4 P’s): PRODUCT – Branding and Quality are

INTRODUCTION Stage Impact on Marketing Mix (4 P’s) (cont. ) : PLACE – Company

GROWTH Stage n Sales n and Profit are Increasing Much of Target Market Knows

GROWTH Stage Impact on Marketing Mix (4 P’s): PRODUCT – Quality Maintained. Additional Features

GROWTH Stage Impact on Marketing Mix (4 P’s) (cont. ) : PLACE – Channels

MATURITY Stage n Sales n Level Off or Slow Down Much More Competition n

MATURITY Stage Impact on Marketing Mix (4 P’s): PRODUCT – Features Enhanced. Differentiate From

MATURITY Stage Impact on Marketing Mix (4 P’s) (cont. ) : PLACE – Becomes

DECLINE Stage n Sales Fall. Profits May Be Smaller Than Costs. n Company Must

DECLINE Stage n Sell or License the Product – Ex. Power Rangers by Japanese.

DECLINE Stage n Regionalize the Product – Removing from Where Sales are Poor and

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The Product Life Cycle

Product Life Cycle Four Stages a Product Goes Through in Life: n Introduction n Growth n Maturity n Decline Growth Introduction Decline

INTRODUCTION Stage Company’s Efforts Focus On: n Promotion (Letting People Know) n Production (Efficiencies, Bugs) Make First Run Pieces Establish Manufacturing Procedures GOAL: Draw Attention to New Product the first time customers become aware

INTRODUCTION Stage Impact on Marketing Mix (4 P’s): PRODUCT – Branding and Quality are Established. Patents and Trademarks are Obtained. PRICING – May be Low (penetration pricing) or High (recover developmental costs)

INTRODUCTION Stage Impact on Marketing Mix (4 P’s) (cont. ) : PLACE – Company is Selective Until Customers Show Acceptance of Product PROMOTION – Costs at their Highest. Focus on New Product Benefits. Build Product Awareness.

GROWTH Stage n Sales n and Profit are Increasing Much of Target Market Knows of and Buys the Product n Competition Product is Aware and Offers New

GROWTH Stage Impact on Marketing Mix (4 P’s): PRODUCT – Quality Maintained. Additional Features and Services Added. New Models May be Introduced. PRICING – Maintained. Company is Enjoying Increased Demand with Relatively Little Competition.

GROWTH Stage Impact on Marketing Mix (4 P’s) (cont. ) : PLACE – Channels (outlets) Added as Demand Increases. PROMOTION – Aimed at Broader Audience. FOCUS Now on Consumer Satisfaction

MATURITY Stage n Sales n Level Off or Slow Down Much More Competition n Much of Target Market Already Owns the Product.

MATURITY Stage Impact on Marketing Mix (4 P’s): PRODUCT – Features Enhanced. Differentiate From Competition. PRICING – May Be Lowered a Little.

MATURITY Stage Impact on Marketing Mix (4 P’s) (cont. ) : PLACE – Becomes More Intensive. Incentives May Be Offered to Encourage Sales of Competition. PROMOTION – Expenses May Climb. Focus On Differentiating Product From Competition.

DECLINE Stage n Sales Fall. Profits May Be Smaller Than Costs. n Company Must Make Choices • Sell or License the Product (delete) • Recommit to the Product Line • Discount the Product • Regionalize the Product • Modernize or Alter the Product

DECLINE Stage n Sell or License the Product – Ex. Power Rangers by Japanese. n Recommit to the Product Line – Find New Use for Product – EX. Geltin Dessert Mixes to Finger Jell-O n Discount the Product – Permanent Repositioning to Discount Good. – Example: Pepsodent Toothpaste.

DECLINE Stage n Regionalize the Product – Removing from Where Sales are Poor and Only Selling Where Strong Customer Loyalty. – EX. Nabisco Foods Only Sells “My-T-Fine” Soup in Northeastern States. n Modernize or Alter Product Offering – Complete Redesign (Risk - Costs Money) – EX. Lavoris Mouthwash was just Red, Green or Blue. Redesign to Clear…Whole New Young Market That Never Bought Original