1 / 15

Product LIFE CYCLES

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.

irma
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. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Product LIFE CYCLES

  2. 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

  3. Traditional Life-Cycle • Product Life Cycle has FIVE stages

  4. 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.

  5. 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.

  6. Who is that guy? • He reads GQ, Cosmo, & In Style. • He loves to mimic celebrities… who get the products for free (marketing tool)

  7. 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

  8. 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?

  9. 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?

  10. The faster, the better… • The quicker a product grows in popularity the more time it has to make a profit. • More advertising • Less competition

  11. 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

  12. The Answer… • A low-end Product…

  13. 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.

  14. 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

  15. Decision Point Stage • Time to pull the plug or remarket the product with pricing or rebranding strategies…

More Related