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The Product Life Cycle

The document describes the typical product life cycle model which includes four stages: introduction, growth, maturity, and decline. During introduction, companies work to promote awareness and get customers to try the new product. In the growth stage, more competitors enter and the product is improved. Maturity occurs when sales begin to slow down and attracting new buyers is challenging. Finally, in decline, sales and profits drop off and the product is eventually removed from the market. Managing the life cycle may involve product or market modifications or repositioning.

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7K views10 pages

The Product Life Cycle

The document describes the typical product life cycle model which includes four stages: introduction, growth, maturity, and decline. During introduction, companies work to promote awareness and get customers to try the new product. In the growth stage, more competitors enter and the product is improved. Maturity occurs when sales begin to slow down and attracting new buyers is challenging. Finally, in decline, sales and profits drop off and the product is eventually removed from the market. Managing the life cycle may involve product or market modifications or repositioning.

Uploaded by

Pheobelyn Ending
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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THE PRODUCT LIFE

CYCLE

SERM #51
Product Life Cycle

w th Maturity
ro
G De
c lin
ti o n e
o du c
Intr
Stage 1: Introduction
 Stage 1: Introduction
 Occurs when product first enters
marketplace
 Promoting consumer awareness
 Getting customers to try new product
 Millions of dollars spent to educate
consumers
 Major task: getting product in the
marketplace
Stage 2: Growth
 Stage 2: Growth
 More competitors enter the marketplace
 Adding distribution outlets
 Product improves:
 adding flavors, features, etc.
 Improved to stay competitive
 Sold in more locations
Stage 3: Maturity Stage
 Stage 3: Maturity Stage
 Sales begin to slow down for the product
 Repeat customers stop buying the product
 Attracting new buyers is a challenge
 Product has reached its peak
Stage 4: Decline
 Stage 4: Decline
 Sales and profits drop
 Little to no marketing support
 Product may be dropped by company
 There is no longer a demand for the
product
The Product Life Cycle
Review

Introduction Growth

Decline Maturity
Manage the Life Cycle
 Product Modification:
 Changing a product’s characteristics
 package, features, appearance, quality
 Companies market this “new” product to increase
sales

 Market Modification:
 Strategy to find new customers
 Modify the product to create new target market
 Encourage current customers to use the product more

 Repositioning:
 Change product’s image in relation to competitor’s
image
 A change in any of the 4 P’s (Marketing Mix)
Star Wars Product Life Cycle
Example
 Introduction-Star Wars released in 1977

 Growth-More movies made from 1st one

 Maturity-Sales slow after third movie

 Decline-New generation does not care


for movies
Class Activity
 Take a related Sports Entertainment
product through the 4 stages of the
Product Life Cycle:
 Introduction

 Growth

 Maturity

 Decline

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