product life cycle
TRANSCRIPT
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PRODUCT Life Cycle
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Product Life Cycle
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REV
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Summary
of
Summary
of
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Product DevelopmentProduct Development
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Sales
Costs
Profits
Marketing Objectives
Product
Price
Low sales
High cost per customer
Negative
Create product awareness and trial
Offer a basic product
Use cost-plus basis
Distribution Build selective distribution
Advertising Build awareness among innovators,early adopters
Marketing Strategies: Marketing Strategies: Introduction Stage
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Toyota Hybrid : Introductory stage productToyota Hybrid : Introductory stage product
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Sales
Costs
Profits
Marketing Objectives
Product
Price
Rapidly rising sales
Average cost per customer
Rising profits
Maximize market share
Offer product extensions, service, warranty
Penetration Pricing
Distribution Build intensive distribution
Advertising Build awareness in the mass market
Marketing Strategies: Marketing Strategies: Growth Stage
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A Product at the Growth StageA Product at the Growth Stage
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Sales
Costs
Profits
Marketing Objectives
Product
Price
Peak sales
Low cost per customer
High profits
Maximize profit while defending market share
Diversify brand and models
Price to match or best competitors
Distribution Build more intensive distribution
Advertising Stress brand differences and benefits
Marketing Strategies: Marketing Strategies: Maturity Stage
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A product at the Mature StageA product at the Mature Stage
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Marketing Strategies: Marketing Strategies: Decline Stage
Sales
Costs
Profits
Marketing Objectives
Product
Price
Declining sales
Low cost per customer
Declining profits
Reduce expenditure and milk the brand
Phase out weak items
Cut price
Distribution Go selective: phase out unprofitable outlets
Advertising Reduce to level needed to retain hard-core loyal customers
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Alternative product life cyclesAlternative product life cycles
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http://www.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864
Apple Inc. – 2008 Revenues Apple Inc. – 2008 Revenues
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iPod Nano(Sept 2005)
iPod Touch(Sept 2007)
iPod Shuffle(Jan 2005)
iPod Classic(Oct 2001)
http://www.apple.com/ca/ipod/compare-ipod-models/
Product Life Cycle of iPodsProduct Life Cycle of iPods
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Timeline of iPod Classic
http://en.wikipedia.org/wiki/IPod_Classichttp://www.apple.com/ipodclassic/
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Timeline of iPod Classic
http://en.wikipedia.org/wiki/IPod_Classic
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Timeline of iPod Touch
http://en.wikipedia.org/wiki/IPod_Touchhttp://www.apple.com/ipodtouch/
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Marketing Mix -- iPod Touch
• Product: “A great pocket computer”. Music, movies, games, apps at fingertips. HD Video recording, Retina Display, Air play, Voice Control features.• Price: 8GB : $199; 32GB: $299; 64GB: $399• Promotion: Advertisement on TV, billboards,
magazines. Focus on numerous applications. • Place: Online, Apple Store, Future Shop, Best Buy,
Costco.
http://www.apple.com/ipod/compare-ipod-models/
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