product life cycles - ckss marketing: goods, services, ev retailers to carry your product â€“...
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PRODUCT LIFE CYCLES
Types of Goods and Services
There are 4 classifications of G & S ◦ Industrial Goods ◦ Consumer Goods ◦ Industrial Services ◦ Consumer Services
Industrial Good ◦ Raw materials, equipment, supplies used to
make our consumer goods
Consumer Good ◦ End products we (the consumer) buy to use
Industrial Service ◦ Service provided from one business to
Consumer Service ◦ Service provided to the final buyer
Industrial vs Consumer Goods With a partner – Discuss the changes and/or
give an example of the following industrial goods as they are converted from raw material to a processed good to a finished good. Describe whether your example of a finished good is still an industrial good or is now a consumer good.
◦ Tree ◦ Tomato ◦ Wheat ◦ Coal
Answers Tree Is cut down by a logging company, sold to a pulp mill
who convert it into pulp, sold to a paper manufacturer who converts it into a paper product, sold to Office Depot. Is a consumer product at Office Depot.
Tomato Is harvested by a farmer, sold to a ketchup maker
who converts it to ketchup. Is a consumer product at the grocery store.
Or is harvested by a farmer and sold to a grocery store. Is a consumer product at the grocery store.
Answers Wheat Is harvested by a farmer, sold to a flour mill who
converts it to flour, sold to a bread manufacturer who converts it to bread which is now a consumer product.
Coal Is mined by a mining company, sold to a Steel
Factory who converts it to a steel product, sold to a car part maker who converts it to a car part, sold to a car manufacturer who makes it a component of a car, sold to a car dealership. Is a consumer product at the car dealership.
Product Life Cycle Demand for any product or service will
change over time.
Most things do not remain in demand forever. They experience periods where demand is impacted, causing companies to change up their marketing.
A change in demand is an indicator to marketers to consider new strategies.
Product Life Cycle
4 Stages of the Product Life Cycle
1) Introduction ◦ Involves significant startup costs to research,
manufacture, package and advertise your product. (Big Money Needed!)
◦ Product is launched into the market.
◦ Marketing/Sales – need to pull/create demand – have a strategy Ideas?
4 Stages of the Product Life Cycle 2) Growth ◦ Companies begin to grow their sales (hopefully)!
Consumers start becoming aware of your product and begin to purchase.
◦ Marketing strategies – continue to work to locate retailers to carry your product – growing your business
◦ Might begin to see competitors coming out as well, using your idea and capitalizing on your marketing to sell their own product and take your share.
Example: The Blackberry (email capable handhelds) comes out, then we see Nokia and Sony entering the marketplace
4 Stages of the Product Life Cycle Maturity ◦ Successful companies will have earned profits to cover
start-up costs and begin to get themselves “into the black”
◦ Often there is a lot of competition at this stage – new marketing strategy – how to stay on top?
◦ Weaker competitors start to leave the market (failures) ◦ Begin to consider expanding into other markets, using
their success in the market to build on their reputation and create success in other markets
Example: Disney expansion into cruise holidays was helped by their reputation as a quality vacation destination for theme parks.
Non-Traditional Product Life Cycles
We’re going to watch the following video on “Non-Traditional Life Cycles”
You need to take notes for potential test questions, unless you have the mind of a steel trap J