•Just as humans go through life cycle, (baby to

teenager to adult), most products (and services)

pass through various stages over time.

•These stages make up a life cycle of a product

called Product Life Cycle.

•Although the rates of change, and the length and

intensity of each stage may vary, most product life

cycles follow roughly the same pattern.

•In the introductory stages (similar baby stage)

the focus is on the product. Later, the focus

changes to promotion and price.

Why do marketers need to know the product

lifecycle?

Often called a “ Launch” Consumers uninformed Branding 101

1st Consumers = “early adopters” (trendsetters) Can you think of any products that are in the lau

nch phase now? Do a quick search!

Intro

Followers to early adopters help drive increased sales. Competition is attracted. Product or service is managed carefully Wide advertising & distribution is common Branding, branding, branding!

Gro

wth

Flat growth No increase/decrease in sales New consumers replace those drawn to competitors Advertising keeps public aware

maturity

Sales decreasing as

customers move to

new products Can be averted or

delayed by advertisingAny products?

decline

Final stage in product life cycle Brand Management decision point !! Reformulate / Repackage “New & Improved” New promotion & repricing

Decision point

We finished here at slide 7 (previous slide) today.

Fad Niche

Seasonal

Are there steps to when we make a big ticket item purchase?

Psychologists have proven that generally, consumers go through five (sometimes six) steps when making a purchase.

This study goes hand in hand with understanding consumer psychology of WHY WE BUY.

Processes a consumer uses to

make purchase decisions, as

well as to use and dispose of

purchased goods or services;

also includes factors that

influence purchase decisions

and the product use.

PurchasePurchase

Evaluation of Alternatives

Evaluation of Alternatives

Information SearchInformation Search

Criteria is SetCriteria is Set

Need Recognition – The Consumer has a WANT

Need Recognition – The Consumer has a WANT

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological Factors Factors affect affect all stepsall steps

Cultural, Social, Cultural, Social, Individual and Individual and Psychological Psychological Factors Factors affect affect all stepsall steps

When a current product isn’t performing properly

This drives the entire buying decision cycle.

When the consumer is running out of an product

When another product seems superior to the one currently used

• Are there ever times when we second guess our purchase decision?

•The sixth and final step (in some cases) is….. REGRET!

Chapter 5 Version 6e 15

Can minimize regret through:Effective Communication - Follow-up - Guarantees - Warranties

Cognitive DissonanceCognitive Dissonance

??Did I make a good decision?Did I make a good decision?

Did I buy the right product?Did I buy the right product?

Did I get a good value?Did I get a good value?

Create a Google Doc and share it with me. Title it: Buying Decision – your name, ex: Buying Decision – Ms.

Busteed Place yourself in the buying decision hotseat. Select an item that

you would like to purchase (ie: car, vacation, donation, house). Go through the six steps of the Buying Decision process. In each

step, include information necessary, ie: criteria for buying a car (colour, 4 door, low mileage, etc)

When going shopping, do so online and include at least 2-3 links of items that fulfill your criteria!

When selecting your final purchase, include a link and rationale as to why you selected this product in the end.

Have fun shopping! When done, share with a friend!