Download The Product Lifecycle

The Product
Lifecycle
•Most products and services pass through various stages
over time. These stages make up a life cycle.
•Although the rates of change, and the length and intensity
of each stage may vary, most life cycles follow roughly the
same pattern.
•In the introductory stages 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
• Business info:
–
–
–
–
Product features
Availability
Design
Brand Identification
Intro
• 1st Consumers = “early adopters” (trendsetters)
• Different products require unique introductory
Growth Stage
• Followers to early
adopters help drive
increased sales.
• Competition is
attracted.
• Product or service
is managed carefully
• Wide advertising & distribution is common
Maturity
• Flat growth
• No increase/decrease
in sales
• New consumers
replace those drawn
to competitors
• Advertising keeps
public aware
• “Cash Cows” (no development costs)
maturity
Decline
• Sales decreasing as
customers move to
new products
• Permanent
phenomenon
• Can be averted or
delayed by advertising
decline
Decision Point
• Final stage in product life cycle
• Brand Management
decision point !!
• Reformulate
/ Repackage
• “New & Improved”
• New promotion & repricing
• GO or NO-GO
Decision
point
Non Traditional
Product Life Cycles
Fad
Niche
Seasonal