Product life cycles
This presentation is the property of its rightful owner.
Sponsored Links
1 / 15

Product LIFE CYCLES PowerPoint PPT Presentation


  • 72 Views
  • Uploaded on
  • Presentation posted in: General

Product LIFE CYCLES. Product Life-Cycles. Describes the change in consumer demand over time & informs marketers when a change will be needed. No Product lasts forever Trends, lifestyles, & tech all change. Traditional Life-Cycle. Product Life Cycle has FIVE stages. Introduction.

Download Presentation

Product LIFE CYCLES

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Product life cycles

Product LIFE CYCLES


Product life cycles1

Product Life-Cycles

  • Describes the change in consumer demand over time & informs marketers when a change will be needed.

  • No Product lasts forever

  • Trends, lifestyles, & tech all change


Traditional life cycle

Traditional Life-Cycle

  • Product Life Cycle has FIVE stages


Introduction

Introduction

  • Product Launch: the moment a new product is introduced to the market.

    • Expensive!

      • New machinery

      • Design costs

      • Promotions

      • Advertising

  • This is why new products aren’t cheap.


Who buys this stuff

Who buys this stuff?

  • That guy that always wants to have the newest gadgets… you know who he/she is.

  • Marketers call these people early adopters or trendsetters.


Who is that guy

Who is that guy?

  • He reads GQ, Cosmo, & In Style.

  • He loves to mimic celebrities… who get the products for free (marketing tool)


New product push pull

New Product – PUSH/PULL

  • Marketers want to establish a connection with consumers and their product very early.

  • Pull: Adverts, coupons, etc

  • Push: dealer incentives, discounts, etc


A bigger push

A bigger PUSH

  • Consignment: all the retailer to return any unsold products

  • Shelf Allowance: marketers pay money to a retailer to provide the prime space in the store. Is this bribery?


Growth stage

Growth Stage

  • After the product launches and establishes its initial base it grows by:

    • Being Visible in advertising

    • Visible in daily life

    • Word of Mouth

  • This stage is crucial. Will it take off or will it be a bust?


The faster the better

The faster, the better…

  • The quicker a product grows in popularity the more time it has to make a profit.

    • More advertising

    • Less competition


Obstacles

Obstacles…

  • Market Share: is a company’s sales of goods or services as a percentage of the total market.

    • More competitors = smaller market share

    • This is when the original product sees upgrades and added features

  • Barriers To Entry: factors preventing a company from generating profit.

    • Small market

    • Cost of research

    • Advertising expenses

    • Design and Production Costs


  • The answer

    The Answer…

    • A low-end Product…


    Maturity stage

    Maturity Stage

    • This is when the sales of a product increase slowly, if at all.

      • Marketers want to keep their brand name out there.

      • Often they have recouped all their production/marketing cost and can now make a big profit.

    • Businesses take the money made in this phase to develop new products.


    Decline stage

    Decline Stage

    • When there a no new customers for a product, it is on the decline.

    • Quick Fix = Price Drop

    • End Game = Pull it off the market


    Decision point stage

    Decision Point Stage

    • Time to pull the plug or remarket the product with pricing or rebranding strategies…


  • Login