BUS-M 300 1nd Edition Lecture 9Outline of Last Lecture I. What is a Product? II. Types of Products III. Why Products Fail IV. The New Product Development Process Outline of Current Lecture I. Product Life Cycle II. Product Life Cycle Chart Current LectureI. Product Life Cycle - Product life cycle: describes the stages a new product goes through in the marketplace- It includes the introduction, growth, maturity, and decline stages - It is based on four premises1. Products have a limited life2. Product sales pass through distinct stages, each with different marketing implications 3. Profits from a product vary at different stages in the life cycle4. Products require different life cycle stages 5. Marketers want to keep products from entering the declining stage 6. Competition peaks during the maturity stage7. Sales and profit peak during the maturity stage as wellII. Product Life Cycle Chart Stage Product KnowledgePromo/ AdvertisingCompetitionDemand (Sales)Profit Number of Products Introductory Low Knowledge-orientedLow Low Low FewGrowth Increasing Knowledge orientedbut becoming persuasiveIncreasing Increasing Increasing but...Some Maturity Very high Persuasive: price oriented and focused on subtle benefits Highest Decreasing Supply>demand High but…Many Decline Very high Similar to maturity stageDecreasing Very low May be negative
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