Follow this cycle not fads fads s tyle s fas hions

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Unformatted text preview: De cline G rowth, Not a ll products follow this cycle : Not Fads Fads S tyle s Fas hions Fas 10 - 13 Figure 10-3: Styles, Fashions, and Fads 10 - 14 Product Life-Cycle Strategies • The product life cycle conce pt ca n be The a pplie d to a : P roduct cla s s (s oft drinks ) P roduct form (die t cola s ) Bra nd (Die t Dr. P e ppe r) Us ing the PLC to fore cas t brand p e rform ance or to de ve lop m arke ting s trate gie s is proble m atic 10 - 15 Total Retail Sales The Category Product Life Cycle Decline Growth Maturity Introduction Time Strategy variable Target market Variety Distribution Intensity Price Lower prices Promotion Introduction High-income Innovators One basic offering Limited or extensive Penetrating or skimming Informative Growth Maturity Middle-income adapters Some variety Mass market Greater variety More retailers Decline More retailers Wide range Persuasive Low-income and laggards Less variety Fewer retailers Lower prices Competitive Limited 10 - 16 Product Life-Cycle Strategies P LC S tag e s PLC • P roduct Product de ve lopm e nt de • Introduction • Growth • Maturity • De cline • Be gins whe n the Be c ompa ny de ve lops a ne w-product ide a ne • S a le s a re ze ro • Inve s tme nt cos ts Inve a re high • P rofits a re ne ga tive 10 - 17 Product Life-Cycle Strategies P LC S tag e s PLC • P roduct Product de ve lopm e nt de • Introduction • Growth • Maturity • De cline • Low s a le s • High cos t pe r High cus tome r a cquire d c us • Ne ga tive profits • Innova tors a re Innova ta rge te d ta • Little compe tition 10 - 18 Marketing...
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