Product Life Cycle

1
Product Life Cycle

• Chapter 30
• Section 2 Part 1

2
Product Life Cycle Stages

• Introduction Stage
• Growth Stage
• Maturity Stage
• Decline Stage

3
Introduction Stage

• Major goal draw customers attention
• Special promotions ex. Free samples
• Costs are high
• Profit is Low

4
Growth Stage

• Increasing Sales and profits
• Target market familiar with product
• Advertising focus on customer satisfaction
• Competition arises

5
Maturity Stage

• Sales slow or level off
• More competition
• Target market owns product
• Advertising focus on competition

6
Decline Stage

• Sales fall
• Management will need to decide fate of product
• 5 strategies during this stage
• Sell or license the product
• Recommit to the product line
• Discount the product
• Regionalize the product
• Modernize or alter the product offering

7
Playstation 3

• What stage in the product life cycle is this in?
• Justify your statement.

8
Slinky

• What stage in the product life cycle is this in?
• Justify your statement.

9
Uggs

• What stage in the product life cycle is this in?
• Justify your statement.

10
Shamrock Shake

• What stage in the product life cycle is this in?
• Justify your statement.

11
Fax Machine

• What stage in the product life cycle is this in?
• Justify your statement.