BUS M 300 Lecture 9 Outline of Last Lecture I What is a product II Product Line and Product Mix III Classification of Products IV Types of Products V Why products fail VI The New Product Development Process Outline of Current Lecture VII Product Life Cycle VIII Creating Product Identity Current Lecture o Product Life Cycle o Describes the stages a new product goes through in the marketplace Introduction Growth Maturity Decline o Based on 4 premises Products have a limited life Product sales pass through distinct stages each with different marketing implications Profits from a product vary at different stages in the life cycle Products require different life cycle stages These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Profit per item is highest in the growth stage but you can sell more in the maturity stage o Marketers want to keep products from entering the decline stage o Marketers try to extend the product life cycle in the early maturity stage Increasing frequency of use This is called a penetration strategy To sell mature products you give customers new ways to use the product In the maturity stage you have to remember that products are price sensitive Increasing number of users Increase who uses the products or increase the distribution of product This approach is called a market development strategy Find new uses for the product If same customers it is a penetration strategy If new customers it is a market development strategy Change packaging labels quality This is called a product development strategy o Creating Product Identity o Everything today is all about brand o Brands are worth a lot of money o We as consumers frequently pay for the brand o
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