product life cycles
DESCRIPTION
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. - PowerPoint PPT PresentationTRANSCRIPT
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PRODUCT LIFE CYCLES
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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
![Page 3: Product LIFE CYCLES](https://reader036.vdocument.in/reader036/viewer/2022081503/568161ce550346895dd1bbc5/html5/thumbnails/3.jpg)
Traditional Life-Cycle Product Life Cycle has FIVE stages
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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.
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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.
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Who is that guy? He reads GQ, Cosmo, & In Style.
He loves to mimic celebrities… who get the products for free (marketing tool)
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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
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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?
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Growth Stage After the product launches and establishes its initial
base it grows by:
Being Visible in advertisingVisible in daily lifeWord of Mouth
This stage is crucial. Will it take off or will it be a bust?
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The faster, the better… The quicker a product grows in
popularity the more time it has to make a profit.
More advertisingLess competition
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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 marketCost of researchAdvertising expensesDesign and Production Costs
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The Answer… A low-end Product…
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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.
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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
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Decision Point Stage Time to pull the plug or remarket the
product with pricing or rebranding strategies…