© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 11-2

MANAGING PRODUCTS

AND BRANDS

CHAPTER

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GATORADE: AN UNQUENCHABLE THIRST FOR COMPETITION

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

THE PRODUCT LIFE CYCLE

Slide 11-6

• Product Life Cycle

Primary Demand

• Introduction Stage

Selective Demand

Skimming Pricing Strategy

Penetration Pricing Strategy

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FIGURE 11-1FIGURE 11-1 How stages of the product life cycle relate to a firm’s marketing objectives and marketing mix actions

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 11-8

FIGURE 11-2FIGURE 11-2 Product life cycle for thestand-alone fax machine for business use: 1970–2006

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

THE PRODUCT LIFE CYCLE

Slide 11-9

Repeat Purchasers

• Growth Stage

Deletion

Harvesting

• Maturity Stage

• Decline Stage

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Ford Escape Hybrid Automobile andCanon Digital Rebel Camera

What stage of the product life cycle?

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MARKETING NEWSNET

Will E-Mail Spell Doomfor the Familiar Fax?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

THE PRODUCT LIFE CYCLE

Slide 11-12

Length of the Product Life Cycle

• Some Dimensions of the Product Life Cycle

Shape of the Product Life Cycle

• Generalized Life Cycle

• High-Learning Product

• Fashion Product

• Low-Learning Product

• Fad

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

FIGURE 11-3 FIGURE 11-3 Alternative product life cycles

Slide 11-13

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

THE PRODUCT LIFE CYCLE

Length of the Product Life Cycle

• Some Dimensions of the Product Life Cycle

• Product Class

• Product Form

The Life Cycle and Consumers

• Diffusion of Innovation

Slide 11-14

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 11-15

FIGURE 11-4FIGURE 11-4 Video game console and software life cycles by product class and product form

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

THE PRODUCT LIFE CYCLE

Slide 11-16

• Some Dimensions of the Product Life Cycle

The Life Cycle and Consumers

• Diffusion of Innovation

Early Adopters

Early Majority

Late Majority

Laggards

Innovators

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FIGURE 11-5 FIGURE 11-5 Five categories and profiles of product adopters

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Milk Processor Education ProgramWhat modification strategy?