* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Product Life
Neuromarketing wikipedia , lookup
Marketing communications wikipedia , lookup
Sales process engineering wikipedia , lookup
Bayesian inference in marketing wikipedia , lookup
Multi-level marketing wikipedia , lookup
Digital marketing wikipedia , lookup
Viral marketing wikipedia , lookup
Direct marketing wikipedia , lookup
Market penetration wikipedia , lookup
Target audience wikipedia , lookup
Planned obsolescence wikipedia , lookup
Perfect competition wikipedia , lookup
Guerrilla marketing wikipedia , lookup
Youth marketing wikipedia , lookup
First-mover advantage wikipedia , lookup
Marketing plan wikipedia , lookup
Food marketing wikipedia , lookup
Target market wikipedia , lookup
Multicultural marketing wikipedia , lookup
Green marketing wikipedia , lookup
Street marketing wikipedia , lookup
Integrated marketing communications wikipedia , lookup
Marketing mix modeling wikipedia , lookup
Sensory branding wikipedia , lookup
Product placement wikipedia , lookup
Pricing strategies wikipedia , lookup
Advertising campaign wikipedia , lookup
Marketing channel wikipedia , lookup
Product lifecycle wikipedia , lookup
Global marketing wikipedia , lookup
Marketing strategy wikipedia , lookup
Product Life-Cycle Learning Goals Know the stages of the product life cycle 2. Realize how marketing strategies change during the product’s life cycle 1. Product Life-Cycle Strategies Goal 1: Know the stages of the product life cycle process The Product Life Cycle (PLC) has Five Stages Product Development, Introduction, Growth, Maturity, Decline Not all products follow this cycle: Fads Styles Fashions Product Life-Cycle Strategies Goal 1: Know the stages of the product life cycle process The product life cycle concept can be applied to a: Product class (soft drinks) Product form (diet colas) Brand (Diet Dr. Pepper) Using the PLC to forecast brand performance or to develop marketing strategies is problematic Product Life-Cycle Strategies Goal 2: Realize how marketing strategies change during the product life cycle PLC Stages 1. 2. 3. 4. 5. Product development Introduction Growth Aturity ecline Begins when the company develops a new-product idea Sales are zero Investment costs are high Profits are negative Product Life-Cycle Strategies Goal 2: Realize how marketing strategies change during the product life cycle PLC Stages Low sales High cost per customer Product development Introduction Growth Maturity Decline acquired Negative profits Innovators are targeted Little competition Marketing Strategies: Introduction Stage Goal 2: Realize how marketing strategies change during the product life cycle Product – Offer a basic product Price – Use cost-plus basis to set Distribution – Build selective distribution Advertising – Build awareness among early adopters and dealers/resellers Sales Promotion – Heavy expenditures to create trial Product Life-Cycle Strategies Goal 2: Realize how marketing strategies change during the product life cycle PLC Stages Rapidly rising sales Average cost per customer Product development Rising profits Introduction Early adopters are targeted Growth Growing competition Maturity Decline Marketing Strategies: Growth Stage Goal 2: Realize how marketing strategies change during the product life cycle Product – Offer product extensions, service, warranty Price – Penetration pricing Distribution – Build intensive distribution Advertising – Build awareness and interest in the mass market Sales Promotion – Reduce expenditures to take advantage of consumer demand Product Life-Cycle Strategies Goal 2: Realize how marketing strategies change during the product life cycle PLC Stages Sales peak Low cost per customer Product development High profits Introduction Middle majority are targeted Growth Competition begins to decline Maturity Decline Marketing Strategies: Maturity Stage Goal 2: Realize how marketing strategies change during the product life cycle Product – Diversify brand and models Price – Set to match or beat competition Distribution – Build more intensive distribution Advertising – Stress brand differences and benefits Sales Promotion – Increase to encourage brand switching Product Life-Cycle Strategies Goal 2: Realize how marketing strategies change during the product life cycle PLC Stages Declining sales Low cost per customer Product development Declining profits Introduction Laggards are targeted Growth Declining competition Maturity Decline Marketing Strategies: Decline Stage Goal 2: Realize how marketing strategies change during the product life cycle Product – Phase out weak items Price – Cut price Distribution – Use selective distribution: phase out unprofitable outlets Advertising – Reduce to level needed to retain hardcore loyalists Sales Promotion – Reduce to minimal level