MKTG 350 1st Edition Lecture 14 Chapter 12 continuedProduct life cycle- product category (cell phones, cars, etc.)- Introduction-o Make people aware of product – customers and trade - Growtho Competitors first enter – economies of scale o Trying to increase the rate of adoption - Maturityo Most products are in the maturity stage (clothes, packaged goods)o Most products will last a very long time in the maturity stage – fridges, blue jeans, mattresses– (not technology- easily replaced)o Try to extend phase as long as they can by product improvements - Decline1. Maintain- decide to keep selling the predict and promoting it2. Harvest- keep selling the product but not marketing it 3. Delete or divest- quit selling it entirely Introduction Growth Maturity DeclineSales Low Rising Peak DecliningProfit Negative or low Rapidly rising Peak to decline Declining Typical consumersInnovators Early adopters and early majorityLate majority LaggardsCompetitors One or low Few but increasingHigh number of competitors and competing productsLow number of competitors Strategies based on Product Life Cycle- caveats- Bell shaped, but can take many shapes (fads have a different shape more like a triangle- Challenging to know precisely the stage of the PLC 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.Services: The intangible ProductService- and intangible offering, deed, performance, or effort that can’t be physically touched Factors differentiating services from goods- Intangible o Required using cues to aid customers (doctors credentials, diplomas)o Atmosphere is important to convey value (lawyers office- other clients, nice building, awards, cases that they’ve won, fancy furniture, high rates) price is a cue for quality o Images are used to convert benefit of value - Heterogeneous- can not be identical every single time (a little different every time) can’t control because we are humano Technology- helps with variability o Training- know exactly what is expected of them o Automation- used to remove a person (telephone recording where you press the buttons) - Perishable- not farm products o Air plane flight- cant get that back after the plane takes off (cant get back an empty seat or hotel room) - Inseparable o Production and consumption are simultaneouso Little opportunity to test a service before use (haircuts)o Lower risk by offering guarantees or warranties Increasing importance of services1. Production of manufactured good is cheaper off shored but you cant do that with a service 2. House hold maintenance is now more specialized (food preparation, moving, hair care, car care)3. Place a higher value on our leisure and convenience 4. Aging population- they need more services (meals on wheels, assisted living, nursed, house keepers, drivers, elder care) Service Product Continuum—Doctor hotel dry cleanersrestaurantapparel specialty storegrocery