The document discusses product life cycles and their typical stages: introduction, growth, maturity, decline, and decision point. It describes each stage in detail. In the introduction stage, a new product is launched at a high price to early adopters. In the growth stage, sales increase as more consumers adopt the product. The maturity stage is when sales level off, but profits are high. During decline, a product loses consumers and profits fall. Finally, at the decision point, marketers must determine the product's future.

3. Product Life Cycles
• Product life cycles describe the
changes in consumer demand over a time.
No product can be in demand forever.
Trends, technology and lifestyles change,
which affects consumer demand.
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4. Product Life Cycles
maturity
decline
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growth
decision
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introduction
Time
• The traditional product life cycle
consists of five stages.
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5. Product Life Cycles
• Introduction Stage
•
When a product is first introduced
a product launch occurs. It may occur
regionally, provincially, or nationally,
depending on predicted demand.
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6. Product Life Cycles
• Introduction Stage
•
Launching a new product is very
expensive, so initially the price is high.
Costs involved include: machinery, set-up,
training, promotion, storage, packaging,
market research.
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7. Product Life Cycles
• Introduction Stage
• Who buys at this stage?
•
Curious people, those
who always want new
things first:
- early adopters
- trendsetters.
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8. Product Life Cycles
• Introduction Stage
•
Main purpose of marketing is to
inform the consumer about new
products and to establish the value
equation as early as possible.
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9. Product Life Cycle
• Products currently in introduction

10. Growth Stage
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growth
Time

11. Product Life Cycles
• Growth Stage
•
After adopters find and use a
product, others will follow. The product
is visible, consumers see/hear others
use it. Reputation spreads through word
of mouth and advertising.
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12. Product Life Cycles
• Growth Stage
• The faster a product reaches the growth
stage, the sooner it starts making a profit.
• The first company to enter a market will
pay the most for development and
advertising, but it will have a major
advantage: No competition.
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13. Product Life Cycles
• Growth Stage
• As competitors enter the market,
companies strive to maintain their
market share: the company’s sales
as a percentage of the total for the
market.
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14. Growth Stage

15. Product Life Cycles
• Maturity Stage
• The period during which
sales start to level off
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maturity
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16. Product Life Cycles
• Maturity Stage
•
Marketers keep the brand
name in front of consumers. Often
the success and longevity of the
product is highlighted.
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17. Product Life Cycles
• Maturity Stage
• Because major costs have been
recuperated and the cost of sales and
distribution is low, products usually
make large profits during this stage.
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18. Product Life Cycles
• Maturity Stage
• Often times companies will take this profit
to develop new products and product
launches.
• EXAMPLE: Disney took profits from its
amusement parks to launch a cruise ship
line. This also expands their brand name
into a new market.
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19. Maturity Stage (LONG TIME)

20. Maturity Stage (Shorter Time)

21. Product Life Cycles
• Decline Stage
• Occurs when a company cannot find new
consumers for their product. Profits decrease;
marketers try to find the reason for the
decline.
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decline
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22. Product Life Cycles
• Decline Stage
• If it is a temporary decline
– it may be reversed by a small price
– change in the design
– new ad campaign
– Change in the packaging
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23. Decline Stage
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24. Product Life Cycles
• Decision Point Stage
The final stage of the product life cycle.
Marketers must make important decisions
regarding a product’s future.
decision
point
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25. Product Life Cycles
• Decision Point Stage
• A product may be reformulated,
repackaged, and reintroduced.
• Most often maintenance of a product
involves new promotion and new pricing.
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