Transcript web.dsbn.edu.on.ca

MARKETING
Chapter 8
PRODUCT LIFE CYCLE
Why is it important?
Product Life Cycle
 Shows the path a typical new product takes from
its inception to its discontinuation.
 It describes the stages a product goes through from
its introduction, through its growth until it is
mature and then finally its decline.
Product Life Cycle
Stage 1: Introduction
 When the product or
service will first appear.
Stage 2: Growth
 Product or service
establishes a presence
in the marketplace.
 The product or service
will show a profit and
its sales will increase.
 There will be little or
no competition for the
product/service.
 Some competition is at
its peak.
 The promotion and
advertising must be
put into full gear.
Product Life Cycle
Stage 3: Maturity
 The product or service
is at the peak of
popularity.
Stage 4: Decline
 Sales begin to drop on
the product/service.
 Competitors already
 Competition is at its
left the scene.
peak.
 Company must decide
 The promotion and
advertising must be
put into full gear.
whether to abandon
the product
Product Life Cycle
Non-traditional Product Life Cycles
Fad:
 A product or service is extremely popular for a very
brief period of time.
 Becomes unpopular and just as quickly vanishes from
the marketplace.
 Very risky, timing is everything to make money.
Fad Product Life Cycle
Non-traditional Product Life Cycle
Trends:
 A mass movement toward a particular style or value
which can result in a number of products that begin
to take on a traditional product life cycle.
 Lasts longer than a fad (MP3 Player, digital cameras).
Trend Product Life Cycle
Non-traditional Product Life Cycle
Niche Markets:
 Small section of the market that is dominated by
one company.
 Limited if any competition.
 Very short growth stage that leads to a solid but
not financially spectacular maturity stage (pet
hotel).
Non-traditional Product Life Cycle
Seasonal Markets:
 Marketers can anticipate periods of high or low
demand.
 They will look to create opportunities outside of
their usual season to create value for their product
in consumers’ minds (Golf Course).
Product Life Cycle Assignment

Make a table with a column for each stage of the Product Life Cycle.

List each of the following products under its current stage of the Product Life Cycle.
 DVD Players
 Blue-Ray Player
 Cabbage Patch Kids
 Kellogg’s Cereal
 Coca-cola
 Typewriters
 iPod
 Faxes
 Email
 Cotton T Shirts
 Credit Cards
 Canada Postal Service

Add at least two more products or services at each stage of the cycle.