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Marketing

Marketing. Chapter 8. Product Life cycle. Why is it important?. Product Life Cycle. Shows the path a typical new product takes from its inception to its discontinuation.

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Marketing

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  1. Marketing Chapter 8

  2. Product Life cycle Why is it important?

  3. Product Life Cycle • Shows the path a typical new product takes from its inception to its discontinuation. • It describes the stages a product goes through from its introduction, through its growth until it is mature and then finally its decline.

  4. Stage 2: Growth Product Life Cycle Stage 1: Introduction • When the product or service will first appear. • The product or service will show a profit and its sales will increase. • There will be little or no competition for the product/service. • Product or service establishes a presence in the marketplace. • Some competition is at its peak. • The promotion and advertising must be put into full gear.

  5. Stage 4: Decline Product Life Cycle Stage 3: Maturity • The product or service is at the peak of popularity. • Competition is at its peak. • The promotion and advertising must be put into full gear. • Sales begin to drop on the product/service. • Competitors already left the scene. • Company must decide whether to abandon the product

  6. Product Life Cycle

  7. Non-traditional Product Life Cycles Fad: • A product or service is extremely popular for a very brief period of time. • Becomes unpopular and just as quickly vanishes from the marketplace. • Very risky, timing is everything to make money.

  8. Fad Product Life Cycle

  9. Non-traditional Product Life Cycle Trends: • A mass movement toward a particular style or value which can result in a number of products that begin to take on a traditional product life cycle. • Lasts longer than a fad (MP3 Player, digital cameras).

  10. Trend Product Life Cycle

  11. Non-traditional Product Life Cycle Niche Markets: • Small section of the market that is dominated by one company. • Limited if any competition. • Very short growth stage that leads to a solid but not financially spectacular maturity stage (pet hotel).

  12. Non-traditional Product Life Cycle Seasonal Markets: • Marketers can anticipate periods of high or low demand. • They will look to create opportunities outside of their usual season to create value for their product in consumers’ minds (Golf Course).

  13. Product Life Cycle Assignment • Make a table with a column for each stage of the Product Life Cycle. • List each of the following products under its current stage of the Product Life Cycle. • DVD Players • Blue-Ray Player • Cabbage Patch Kids • Kellogg’s Cereal • Coca-cola • Typewriters • iPod • Faxes • Email • Cotton T Shirts • Credit Cards • Canada Postal Service • Add at least two more products or services at each stage of the cycle.

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