3.01-B

Product Life Cycles

Intro

• What is a product that has been around for as long as you can remember?

• How has it changed over the years?– Example: Purina Cat Chow- offers food for fat cats,

hairball cats, indoor cats, kittens, old cats, and cats with kidney problems.

Product Life Cycle

• Product Life Cycle represents the stages that a product goes through during its life.

• There are 4 Stages of Life Cycle:1. Introduction

2. Growth

3. Maturity

4. Decline

Product Life Cycle

• What are the goals of the Introduction Stage?– To increase product awareness

– Get the customer’s attention thru promotion

– Lots of special promotion

• During Growth Stage:– Customers are aware of product, sales increase

– Companies focus on customer satisfaction

– Competition starts from other companies

Product Life Cycle

• What happens during Maturity Stage?– The product’s sales level off. More money is

spent on competition during this stage.

• Discussion: Have class to choose a mature product

• Discuss how company is managing: 1. Competition

2. Advertising

3. Distribution – Is it only sold at 1 place

4. Other Strategies they have put in place

Product Life Cycle

• During the Decline Stage:– Sales start to decline. A company must decide to

alter the product, discount, or discontinue product.