BUS-M 300 Lecture 9Outline of Last Lecture I. What is a product?II. Product Line and Product MixIII. Classification of ProductsIV. Types of ProductsV. Why products failVI. The New Product Development ProcessOutline of Current Lecture VII. Product Life CycleVIII. Creating Product IdentityCurrent LectureoProduct Life CycleoDescribes the stages a new product goes through in the marketplaceIntroductionGrowthMaturityDeclineoBased on 4 premisesProducts have a limited lifeProduct sales pass through distinct stages, each with different marketing implicationsProfits from a product vary at different stages in the life cycleProducts require different life cycle stagesThese 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.oProfit per item is highest in the growth stage; but you can sell more in the maturity stageoMarketers want to keep products from entering the decline stageoMarketers try to extend the product life cycle in the early maturity stageIncreasing 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 sensitiveIncreasing number of users-Increase who uses the products or increase the distribution of product-This approach is called a market development strategyFind new uses for the product-If same customers, it is a penetration strategy-If new customers, it is a market development strategyChange packaging, labels, quality-This is called a product development strategyoCreating Product IdentityoEverything today, is all about brandoBrands are worth a lot of moneyoWe, as consumers, frequently pay for the
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