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Product…Service
Marketing Defined
Product Lifecycle
Stage 1: Introduction

Program first introduced

Small number of participants

Little or no profitability

Disproportionate demand on resources

Slow growth period

Not much direct competition
Stage 1: Introduction

Marketing Implications :



Modify product to address oversights in the
creation…from test markets
Modify based on feedback from initial
participants
Heavy emphasis placed on promotion


2 for 1
Free class, 1 mo. membership
Stage 2: Growth

Rapid growth in # of participants




Early participants stay & new ones are added
Sharp increase in revenues
Maintain high quality of product to ensure
continued participation
Demand may exceed supply
Stage 2: Growth

Marketing Implications:

Word of mouth generates awareness

Begin creating user loyalty


Fix program issues, problems
Promo is no longer a major focus

Work to attract new customers
Stage 3: Maturity

Participation increases but not at the same
pace as take-off

Outside competition enters the market

Longest stage, most products here

Most marketing mgt deals with maturity stage
Stage 3: Maturity
 Marketing

Implications :
Try a different marketing strategy
 Sales
 Ad
campaigns…Coke

Generate ideas & strategies to maintain
loyalty & interest

Look for new target markets
Stage 4: Saturation



Reached its peak period of success in
terms of participation
Program is dependent upon repeat
participation
Replacement of drop-outs with new
consumers – steady #’s
Stage 4: Saturation

Marketing Implications:

Decisions:
 Modify
the program or let it decline?
 Can agency compete with others?
 Is it worth the costs to continue?
Stage 5: Decline



Decline in the # of participants
People get into more interesting/different
programs
Options during this stage
 Petrification
 Death
 Extension…
Stage 5: Decline

Death


Let enrollment stop a
program
Petrification
Let it go
 Take on a new format
or self run


Extension….
Product
Existing
Market
Existing
Market
penetration
New
Product
development
Replacement
New
Market
development
Diversification
Extension Strategies

Market penetration






Existing product & market
Leave the product as is & go deeper into the
market
Increase participation in current target market
Go after competitor’s consumers
Attract non-users
Used during onset of saturation stage
Extension Strategies

Market
development
 Existing product,
new market


Minority market,
women, outer
markets
Used in saturation
or early decline
Extension Strategies

Product development
 Existing market, new product

Develop a new product for the same
market of the declining program



Softball league vs clinic
Canoe trip vs camping trip
Used in saturation or early decline
Extension Strategies

Replacement





New product, existing market
Replace with an improved
version
Intro new features of product
Develop quality variations
Used in the saturation or decline
stage
Extension Strategies

Difference between Replacement & Product
Development


Replacement – improved version
Development – new product
Extension Strategies

Diversification

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

New product, new market
Focus on expansion to attract new users
Used in the decline stage
Begins the life cycle over again
Why Product



Dictates target market & other elements
of marketing mix
Developed to meet needs to cause an
exchange
Manipulated to increase sales