Download April 8 Product Life Cycle BMI3C

The Product
Lifecycle
•Just as humans go through life cycle, (baby to
teenager to adult), most products (and services)
pass through various stages over time.
•These stages make up a life cycle of a product
called Product Life Cycle.
•Although the rates of change, and the length and
intensity of each stage may vary, most product life
cycles follow roughly the same pattern.
The Product
Lifecycle
•In the introductory stages (similar baby stage)
the focus is on the product. Later, the focus
changes to promotion and price.
Why do marketers need to know the product
lifecycle?
Product
Introduction
Often called a “ Launch”
Consumers uninformed
Branding 101
Intro
1st Consumers =
“early adopters” (trendsetters)
Can you think of any products that are in the
launch phase now? Do a quick search!
Growth Stage
Followers to early
adopters help drive
increased sales.
Competition is
attracted.
Product or service
is managed carefully
Wide advertising & distribution is common
Branding, branding, branding!
Maturity
Flat growth
No increase/decrease
in sales
New consumers
replace those drawn
to competitors
Advertising keeps
public aware
maturity
Decline
Sales decreasing as
customers move to
new products
Can be averted or
delayed by advertising
Any products?
decline
Decision Point
Final stage in product life cycle
Brand Management
decision point !!
Reformulate
/ Repackage
“New & Improved”
New promotion & repricing
Decision
point
We finished here at slide 7 (previous slide)
today.
Non Traditional
Product Life Cycles
Fad
Niche
Seasonal
Are there steps to when we make a big
ticket item purchase?
Psychologists have proven that generally,
consumers go through five (sometimes
six) steps when making a purchase.
This study goes hand in hand with
understanding consumer psychology of
WHY WE BUY.
Processes a consumer uses to
make purchase decisions, as
well as to use and dispose of
purchased goods or services;
also includes factors that
influence purchase decisions
and the product use.
Need Recognition –
The Consumer has a WANT
Cultural, Social,
Individual and
Psychological
Factors
affect
all steps
Criteria is Set
Information Search
Evaluation
of Alternatives
Purchase
When a current product isn’t performing
properly
This drives the entire buying decision
cycle.
When the consumer is running
out of an product
When another product seems superior
to the one currently used
• Are there ever times when we second
guess our purchase decision?
•The sixth and final
step (in some cases)
is….. REGRET!
Cognitive Dissonance
?
Did I make a good decision?
Did I buy the right product?
Did I get a good value?
Chapter 5 Version 6e
15
Can minimize regret
through:
Effective Communication
- Follow-up
- Guarantees
- Warranties
 Create a Google Doc and share it with me.
 Title it: Buying Decision – your name, ex: Buying Decision – Ms.
Busteed
 Place yourself in the buying decision hotseat. Select an item that
you would like to purchase (ie: car, vacation, donation, house).
 Go through the six steps of the Buying Decision process. In each
step, include information necessary, ie: criteria for buying a car
(colour, 4 door, low mileage, etc)
 When going shopping, do so online and include at least 2-3 links of
items that fulfill your criteria!
 When selecting your final purchase, include a link and rationale as
to why you selected this product in the end.
 Have fun shopping! When done, share with a friend!