Product & Service Management • Four Stages of the Product Life Cycle • Describe Product Positioning
The Product Life Cycle • Fours Stages of the Life Cycle: • Introduction • Growth • Maturity • Decline
Introduction • Focus is on promotion and production • Major goal: draw attention to new product • Build sales through product awareness • Costs are high during this stage • Can be the least profitable stage
Growth Stage • Showing increases sales and profits • Target market is aware of product, where to buy • Ads change to customer satisfaction • Competition may show up • Product may need to be modified
Maturity Stage • Sales level off or slow down • More competition • Target market may already own the product. • Higher ad expense to maintain market share • Can product be improved further?
Sales fall, profits drop May be discontinued Strategies: Sell or license the product Promote other uses Discount Regionalize Modify Decline Stage
Product Life Cycle In your notes, write down an example of a product for each stage of the product cycle. Introduction Growth Maturity Decline Discuss with your classmates Be prepared to share your examples.
Product Positioning • The image that a product projects. • Designed to set the product apart from competitors.
Price & Quality • Economy line • Mid-priced line • Luxury line
Features & Benefits • Emphasis is placed on specific features and benefits to the customer.
In Relation to Competition • Compete directly
Product Positioning On a separate sheet of paper, list examples of product positioning based on: Price and Quality Features and Benefits Relation to the Competition In Relation to Other Products in a Line Be prepared to explain your answers.