i t ’s good

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good for you

Product Life Cycle

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 Product Life-Cycle

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 Product Life-Cycle
• Product development
– Sales are zero and investment costs mount
• Introduction
– Slow sales growth and profits are nonexistent
• Growth
– Rapid market acceptance and increasing profits.
• Maturity
– Slowdown in sales growth and profits level off or
decline
• Decline
– Sales fall off and profits drop
Copyright © 2012 Pearson Education, Inc.
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 Product Life Cycle
Product Development

–Sales are zero and

investment costs
mount
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 Product Life Cycle
Introduction Stage
• Slow sales growth
• Little or no profit
• High distribution and
promotion expense

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 Product Life Cycle
Growth Stage
• Sales increase
• New competitors enter the
market
• Price stability or decline to
increase volume

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 Product Life Cycle
Growth Stage
• Consumer education
• Profits increase
• Promotion and
manufacturing costs gain
economies of scale
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 Product Life Cycle
Maturity Stage
• Slowdown in sales
• Many suppliers
• Substitute products

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 Product Life Cycle
Maturity Stage
• Overcapacity leads to
competition
• Increased promotion and
R&D to support sales and
profits

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 Product Life-Cycle Strategies
Maturity Stage Modifying Strategies

• Market modifying
• Product modifying
• Marketing mix modifying

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 Product Life Cycle
Decline Stage
• Sales fall off and profits
drop
• Maintain the product
• Harvest the product
• Drop the product
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 All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2012 Pearson Education, Inc.

Publishing as Prentice Hall

Copyright © 2012 Pearson Education, Inc.

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