product life cycle and positioning. lesson objectives identify the 4 stages of the product life...
TRANSCRIPT
Product Life Cycle and Positioning
Lesson Objectives• Identify the 4 stages of the product
life cycle• Describe product positioning
techniques
Product Life Cycle
The stages a product goes through in its life
1. Introductory Stage
• High promotion• Increase
awareness • High production
costs• Least profitable
stage
2. Growth Stage• Increasing sales and profits• Competition emerges• Modifications may be introduced
3. Maturity Stage
• Sales slow or level off• Most money spent combating
competition
4. Declining Stage
• Sales/profits may fall• New strategy chosen:– Sell or license product – promotion
strategy– Find new product uses– Discount – pricing strategy– Regionalize – place strategy–Modernize or alter – product strategy
Product Positioning
Efforts a business makes to identify, place and sell its
products. Attempt to create an image for the product.
Positioning Strategies
• Price (lowest price?)• Quality (best quality?)• Features/Benefits (filling a need)• Relating to the competition• Relating to other products in the
line
Category Management• Process that manages product
categories as individual business units
• Category manager• Planagram– Computer-developed diagram – product display–Maximizes product’s potential
Product Life Cycle and Positioning