Life cycle of a product in Marketing Management

Product Life cycle

1. Product Life Cycle

2. Stage : I uction S t oge 1: ln t roduc t ion D Occurs when product first enters marketplace D Promoting consumer awareness Getting customers to try new product Millions of dollars spent to educate consumers Ma j or task: getting product in the marketplace

3. St a ge 2: Growth Sta e 2: Growth D More competitors enter the marketplace D Adding distribution outlets D Product improves: adding flavors, features, etc. D Improved to stay competitive D Sold in more locations

4. Stage Maturity Stage Sta e 3: M a turit S ta D Sales begin to slow down for the product D Repeat customers stop buying the product D D Attracting new buyers isa challenge Product has reached its peak

5. Stage 4: Decline S ta ge 4: Decline D S a les and profits drop D Little to no marketing support D Product may be dropped by company D There is no longer a demand for the product

6. The Product Life Cycle Review Introduction Decline Growth Maturity

7. Manage the Life Cycle Product Modific at ion: D Changing a product's characteristics package, features, appearance, quo lity D Companies market this “new” product to increase sales Market Modification: Strategy to find new customers /\/\odify the product to create new target ma rket D Encourage current customers to use the product more Reposi t ioning: D Change produc†'s image in relation to competitor's image a A change in any of the 4 P's (Marketing Mix)