Transcript Product Life Cycle

Hilary Tanouye
Product Life Cycle
Innovators
Early
Adopters
Introduction
Growth
Question
Mark/
Dog
Question
Mark
Skim
Penetrate
Target Market
Majority
Late Majority
Laggards
Product Life Cycle
Maturity
Profitability
Star
Decline
Decision Point
Cash Cow
Dog
Pricing Strategy
Penetrate
Lower
Liquidate
The very first thing that should happen in the introduction stage is to start the
product launch. The product launch is the moment when a new product is introduced
into the marketplace.
 A product launch is very expensive because the manufacturer must set up new
machinery, pay for design costs, train their employees and pay for advertisements.
 Because the costs are so high, when the product is introduced the price is high

Introduction
•The most important part of the
introduction stage is advertising!
•The target market of the
introduction stage are early adopters
•Early adopters read style magazines,
they read the newspaper, and watch
celebrity news programs.
•They are respond well to celebrity
endorsements
The most crucial time for advertising!
Time when the product will either sink or swim
 The faster a company can reach the growth stage the quicker they can make a profit
 Consumers will begin to see the product everywhere, and will know where to buy it,
and the cost


Sales of a product increase more slowly (if at all)
 The advertising will highlight that they have
lasted in the competitive market
 Costs of sales and distribution is low, so they
make a very large profits
 Companies will launch new products
 They use the success of the brand to promote
the new products

When a company is unable to
find new customers
 If a company is in a more
serious decline, it may redesign,
reformulate and repackage their
product
 Or they may close

Marketers decide on the
products future based on the
researchers
 A new promotion campaign is
launched
 Introduce a “New and
Improved!” product
 Price is lowered
