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Chapter 8 MARKETING

Chapter 8 MARKETING. PRODUCT LIFE CYCLE Why is it important?

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Chapter 8

MARKETING

PRODUCT LIFE CYCLEWhy is it important?

Product Life CycleShows the path a typical new product

takes from its inception to its discontinuation.

It describes the stages a product goes through from its introduction, through its growth until it is mature and then finally its decline.

Product Life Cycle

When the product or service will first appear.

The product or service will show a profit and its sales will increase.

There will be little or no competition for the product/service.

Product or service establishes a presence in the marketplace.

Some competition is at its peak.

The promotion and advertising must be put into full gear.

Product Life Cycle

The product or service is at the peak of popularity.

Competition is at its peak.

The promotion and advertising must be put into full gear.

Sales begin to drop on the product/service.

Competitors already left the scene.

Company must decide whether to abandon the product

Product Life Cycle

Non-traditional Product Life Cycles

Fad:A product or service is extremely popular for

a very brief period of time.Becomes unpopular and just as quickly

vanishes from the marketplace.Very risky, timing is everything to make

money.

Fad Product Life Cycle

Non-traditional Product Life Cycle

Trends:A mass movement toward a particular style

or value which can result in a number of products that begin to take on a traditional product life cycle.

Lasts longer than a fad (MP3 Player, digital cameras).

Trend Product Life Cycle

Non-traditional Product Life Cycle

Niche Markets:Small section of the market that is

dominated by one company. Limited if any competition.Very short growth stage that leads to a

solid but not financially spectacular maturity stage (pet hotel).

Non-traditional Product Life Cycle

Seasonal Markets:Marketers can anticipate periods of high

or low demand.They will look to create opportunities

outside of their usual season to create value for their product in consumers’ minds (Golf Course).

Product Life Cycle Assignment Make a table with a column for each stage of the Product Life Cycle.

  List each of the following products under its current stage of the Product

Life Cycle. DVD Players Blue-Ray Player Cabbage Patch Kids Kellogg’s Cereal Coca-cola Typewriters iPod Faxes Email Cotton T Shirts Credit Cards Canada Postal Service

  Add at least two more products or services at each stage of the cycle.