THE PRODUCT LIFE CYLE

1. THE PRODUCT LIFE CYLE

3. INTRODUCTION • Product • branding and quality level is established • patents and trademarks) are made • Pricing • Low penetration to build market share • High skimming to recover development costs • Competitivepricing is also used sometimes (in the middle) • Place • Selective/Limited until consumers accept product • Promotion – goal is to Inform • Capture Innovators and early adopters • Build awareness and educate

4. GROWTH • Product • Additional features and support services • Pricing • Maintained with little competition • Place • Channels/locations are added as demand increases • Incentives offered to retailers • Promotion – Goal is to Persuade • Aimed at broader audience • Increase in # of ads

5. MATURITY • Product • Features are enhanced to differentiate the product from competition • Pricing • lower because of competition • Place • intensive and incentives offered to retailers decrease • Promotion – Goal is to Remind • emphasize product differentiation

6. DECLINE • Product • Figure out why the product is in decline and make the necessary changes • Pricing • Make small changes in price points • Place • Reduce the number of locations • Promotion – goal is to Refresh • New advertising campaigns, new contests, etc

7. DECISION POINT • 3 Main Strategies • Maintain the product • rejuvenating by added features • finding new uses • Harvest the product • reduce costs • continue to offer it to loyal niche market • Discontinue the product • liquidating inventory • selling it to another firm

8. MAYO MADNESS

9. Product Life Cycle Comparisons