BUS M 300 1nd Edition Lecture 9 Outline 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 Lecture I 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 premises 1 Products have a limited life 2 Product sales pass through distinct stages each with different marketing implications 3 Profits from a product vary at different stages in the life cycle 4 Products require different life cycle stages 5 Marketers want to keep products from entering the declining stage 6 Competition peaks during the maturity stage 7 Sales and profit peak during the maturity stage as well II Product Life Cycle Chart Stage Product Promo Competitio Demand Knowledg Advertisin n Sales e g Profit Numbe r of Product s Introducto ry Low Low Low Few Growth Increasing Knowledg Increasing e oriented but becoming persuasive Increasing Increasin Some g but Maturity Very high Persuasive Highest price oriented and focused on subtle benefits Decreasing Supply dema nd High but Many Decline Very high Similar to maturity stage Very low May be negative Few Knowledg Low e oriented Decreasing
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