Sustaining Product Sales Chapter 302 What is a product life cycle A representation of the stages that a product goes through during its life There are 4 stages of the life cycle Introduction ID: 582145
Download Presentation The PPT/PDF document "Product Planning" is the property of its rightful owner. Permission is granted to download and print the materials on this web site for personal, non-commercial use only, and to display it on your personal computer provided you do not modify the materials and that you retain all copyright notices contained in the materials. By downloading content from our website, you accept the terms of this agreement.
Slide1
Product Planning
Sustaining Product Sales
Chapter 30.2Slide2
What is a product life cycle?
A representation of the stages that a product goes through during its life
There are 4 stages of the life cycle
Introduction GrowthMaturityDeclineSlide3
The Product Life Cycle
Dollars
Time
Profit
Sales
Introduction
Growth
Maturity
Decline
ObsoleteSlide4
Managing the Introduction
Company is focused on
Promotion and Production
Getting the customers attentionBuilding sales and customer awarenessCosts in this stage are high, therefore this is the least profitable stage of the cycleSlide5
Managing the Growth
There is an increase in sales and profits
Most of the target market knows about and buys the product
Company now focuses onCustomer satisfactionCompeting with rival companiesSlide6
Managing the Maturity
Sales level off and slow down
More competition exists
Most of target market owns the productCompany starts to think of ways to improve the productSlide7
Managing the Decline
Sales fall and there is profit loss
Ways to keep the product alive
Sell or license the productRecommit to the product line – try to increase advertising and promotionDiscount the productRegionalize the product – sell only in areas with strong customer loyalty
Modernize or alter the productSlide8
Product Positioning
The efforts a business makes to identify, place, and sell its products in the marketplace
The goal is to set the product apart from the competition
A number of strategies can be used to position products in the marketplacePositioning by price and qualityPositioning by features and benefits
Positioning in relation to the competition
Positioning in relation to other products in the lin
eSlide9
Positioning by Price and Quality
A company may offer an economy line, a mid-priced line, and a luxury line
Stresses high price as a symbol of quality or low price as an indication of value
Economy Line
Mid-priced Line
Luxury LineSlide10
Positioning by Features and Benefits
Products are often associated with a feature, attribute, or consumer benefitSlide11
Positioning in Relation to Competition
Some businesses position their products to compete directly with the products of other companies
VS
VSSlide12
Positioning in Relation to Other Products in a Line
Individual products may be positioned in relation to other products in the same line
Original
Palm Pilot
Zire
Tungston
Trio
Additional Features
MP3 player
View Photos
Play Video Clips
Additional Features
E-mail
Surf the Web
Additional Features
Cell Phone ServiceSlide13
Repositioning
When a product reaches the decline stage of the product life cycle it must be changed – or repositioned
Repositioning
– changing the identity or image of a product to redirect or expand the target marketSlide14
Examples: Pledge
Pledge CommercialSlide15
Examples: Cheerios
Cheerios CommercialSlide16
Category Management
A process that involves managing product categories as individual business units
A category may include a group of product lines with the same target market and distribution channels
Goal – to put manufacturers and retailers in closer touch with customer needsSlide17
Planograms
A computer developed diagram that shows retailers how and where products should be displayed on the shelf…maximizing the products potentialSlide18
Assignment
Get the Orange Textbooks
Complete the questions from
Chapter 30.2
Questions 1-3 on page 647
Questions 7, 8, 9, 10, 11 on page 649