Product Life Cycle

1. Product Life Cycle • There are four stages to the Life Cycle Introduction Growth Maturity • Decline http://courses.unt.edu/kt3650_9/sld004.htm This material is based upon work supported by the National Science Foundation under Grant No. 0402616. Any opinions, findings and conclusions or recommendations expressed in this material are those of the author(s) and do not necessarily reflect the view of the National Science Foundation (NSF).

2. Graph of a Product Life Cycle http://courses.unt.edu/kt3650_9/sld004.htm

3. Product Life Cycle What is a Sales Curve Is the up and down sale of units throughout a products Life Cycle

4. Product Life Cycle • Introduction Stage Sales are generally low and somewhat slow to take off Production costs are high because of significant scale economies Marketing costs for costumer awareness, interest and trial are high Profits are low, because to low sales Competitors tend to be few in number http://courses.unt.edu/kt3650_9/sld004.htm

5. Product Life Cycle • Growth • Sales increase rapidly • Positive word of mouth • Increasing number of competitors • Promotion effect http://courses.unt.edu/kt3650_9/sld004.htm

6. Product Life Cycle • Growth (continued) • Costs are declining because of longer production runs due to increased sales • Profits are increasing significantly • Customers are the early adopters (the word of mouth people) • Competition continues to grow throughout this stage http://courses.unt.edu/kt3650_9/sld004.htm

7. Product Life Cycle • Maturity • Sales continues to grow in the early stages of maturity • Costs continue to rise • The only remaining customers to enter the market are the Late majority and the laggards (Those most hesitant to adopt new products) • Competition is the most intense http://courses.unt.edu/kt3650_9/sld004.htm

8. Product Life Cycle • Decline • Sales continue to deteriorate through decline • Profits continue to erode during this stage • Customers are primary laggards • Generally are a significant number of competitors still in the industry at the beginning of the decline stage http://courses.unt.edu/kt3650_9/sld004.htm

9. Product Life Cycle Examples of products in various stages of the product life cycle http://www.tutor2u.net/business/marketing/products_lifecycle.asp

10. Standards to be covered: 1.L 4.I 6.H 13.J 4.J 13.K