Date post: | 22-Nov-2014 |
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PRODUCT LIFE CYCLEJocelyn M. Evangelista7 February 2014
Product Life CycleI. Definition
II. Four Stages and Marketing Objectives
III. Characteristics
IV. Common Product Life Cycles
Product Life CycleI. Definition
A business analysis that attempts to identify distinct stages in the sales history of the product
Product Life CycleII. Four Stages and Marketing Objectives
1. Introduction – create product awareness & trial
2. Growth – maximize market share
3. Maturity – maximize profit while defending market share
4. Decline – reduce expenditure
Product Life Cycle
Product Life CycleIII. Characteristics
1. Introduction Stage
◦ Slow sales growth.◦ Products need to establish
themselves in the market place.
◦ Negative or low profits.
Product Life CycleIII. Characteristics
2. Growth Stage
◦ Rapid sales growth.◦ Early adapters like the
product & additional consumers start buying it.
◦ Sales rise much faster than expenditures in promos.
Product Life CycleIII. Characteristics
3. Maturity Stage
Three Phases :
1)Growth – Sales growth starts to slow; new competitive forces emerge.
2)Stable – Reached market saturation
3)Decaying Maturity – consumers begin switching to other products.
Product Life CycleIII. Characteristics
4. Decline Stage
◦ End of the product life.◦ Period of the market's sale
are significantly below the peak and are declining.
Product Life Cycle
IV. Common Product Life-Cycle Patterns
Growth-Slump-Maturity
sales grow rapidly when product is first introduced, falls, & stabilizes
Product Life Cycle
IV. Common Product Life-Cycle Patterns
Cycle-Recycle - often describes the sales
of new drugs
Product Life Cycle
IV. Common Product Life-Cycle Patterns
Scalloped - succession of life-cycles
based on discovery of new charcteristics, uses or users.
Summary
Periodic examination of products is appropriate because strategies change as products move through their life cycle.