Product Life Product Life CycleCycle

Marketing I

Product Life CycleProduct Life Cycle Product Life Cycle – stages a product goes through

during its life in the marketplace◦ 4 stages: introduction, growth, maturity, decline

Stage 1: Introduction◦ Occurs when product first enters marketplace◦ Promoting consumer awareness◦ Getting customers to try new product◦ Millions of dollars spent to educate consumers◦ Major task: getting product in the marketplace

Product Life CycleProduct Life Cycle Stage 2: Growth

◦ More competitors enter the marketplace◦ Adding distribution outlets is important◦ Product improves: adding flavors, features, etc.

Stage 3: Maturity◦ Sales begin to slow down for the product◦ Repeat customers stop buying the product◦ Attracting new buyers is a challenge

Stage 4: Decline◦ Sales and profits begin to drop◦ Little to no marketing support◦ Company may drop product from their product line

Manage the Life CycleManage the Life CycleProduct Modification:

Changing a product’s characteristics (package, features, appearance, quality)

Companies market this “new” product to increase sales

Market Modification:Strategy to find new customers

Modify the product to create new target marketEncourage current customers to use the product

more

Repositioning:Change product’s image in relation to competitor’s

imageA change in any of the 4 P’s (Marketing Mix)

ConclusionConclusionProduct Life Cycle:

Introduction, Growth, Maturity, Decline

Management of Product Life Cycle:Product Modification, Market

Modification, Repositioning

In-class ProjectIn-class ProjectTake a school store product

through the 4 stages of the Product Life Cycle (IN DETAIL):◦introduction, growth, maturity,

decline

Explain IN DETAIL how you can Manage the Life Cycle:◦Product Modification, Market

Modification, Repositioning