product life cycle. stages introduction focus on promotion and production promotion trying to get...
TRANSCRIPT
Product Life Cycle
Stages
Introduction
Focus on promotion and production
Promotion trying to get new customers
Least profitable stage
Establish market and build demand
Marketing Mix for Introduction
Product-one or few product lines Pricing
Skim Pricing-recoup costs Penetration Pricing-gain high market share
Distribution-scattered, working on plan Promotion-build brand awareness, samples
or trial incentives
Growth
Increasing sales and profits
Much of the target market knows about and buys the product
Shift advertising to focus on customer satisfaction
Much competition Introduce new
models to offer more
Marketing Mix for Growth
Product-new features, packaging, increase quality Pricing
Skim Pricing Monitor Sales Reduce price to appeal to next target market
Penetration Pricing Very little price change Use promotions to keep sales high
Distribution-expand Promotion-increase advertising to build brand
satisfaction.
Maturity Sales level off or
slow down Most competition Most of the target
market owns the product
Marketing efforts fight off competition
Stretch the life of the product
Marketing Mix for Maturity
Product-modifications made to differentiate from competition Look to new uses to hold prices
Price-possible price reductions in response to competition
Distribution-new channels and incentives Look to emerging markets to sell to
Promotion-build brand loyalty, incentives to get others to switch
Decline
Sales fall and profits decrease
Could be losing money on product
Reduce marketing efforts
Once no longer profitable=phased out
Marketing Mix for Decline
Product-reduce products in line, rejuvenate survivors to look new
Price-lowered to get rid of inventory, maintain if there is a niche
Distribution-selective, unprofitable channels phased out
Promotion-reinforce brand image
PLC Song
Step 1: Read through notes Step 2 Think of a product that has gone
through several steps of the PLC (doesn’t have to be in decline)
Step 3: Think of song Step 4: Replace the lyrics of a favorite song
with the life experience of your product.
Be creative and have fun!!!
Stages
What stage is this product in?
What stage is this product in?
What stage is this product in?
What stage is this product in?
What stage is this product in?
What stage is this product in?
What stage is this product in?
What stage is this product in?
What stage is this product in?