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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.

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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


  • 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


  • 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…