Product Life Cycle (Professor Mathur)

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PRODUCT LIFE CYCLE Sameer Mathur, Ph.D. ur.com

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Agenda

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Sameer Mathur smathur.com Asst. Professor (Marketing) 2009 – 2013 Ph.D. and M.S. (Marketing) 2003 – 2009

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The Product Life Cycle

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Summary: Stages in NPD

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Product Development

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Sales Costs Profits Marketing Objectives Product Price Low sales High cost per customer Negative Create product awareness and trial Offer a basic product Use cost-plus basis Distribution Build selective distribution Advertising Build awareness among innovators, early adopters Marketing Strategies: Introduction Stage

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Toyota Hybrid: Introductory Stage Product

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Rapidly rising sales Average cost per customer Rising profits Maximize market share Offer product extensions, service, warranty Penetration Pricing Build intensive distribution Build awareness in the mass market Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Marketing Strategies: Growth Stage

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A Product at the Growth Stage

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Peak sales Low cost per customer High profits Maximize profit while defending market share Diversify brand and models Price to match or best competitors Build more intensive distribution Stress brand differences and benefits Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Marketing Strategies: Maturity Stage

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A Product at the Mature Stage

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Declining sales Low cost per customer Declining profits Reduce expenditure and milk the brand Phase out weak items Cut price Go selective: phase out unprofitable outlets Reduce to level needed to retain hard-core loyal customers Sales Costs Profits Marketing Objectives Product Price Distribution Advertising Marketing Strategies: Decline Stage

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Alternate Product Life Cycles

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http://www.marketlineinfo.com/library/DisplayContent.aspx?R=5B0A0C20-9BB6-4284-A575-AC0F2261F45C&N=4294839864 Apple Inc. – 2008 Revenues

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iPod Nano (Sept 2005) iPod Touch (Sept 2007) iPod Shuffle (Jan 2005) iPod Classic (Oct 2001) http://www.apple.com/ca/ipod/compare-ipod-models/ Product Life Cycle of iPods

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http://en.wikipedia.org/wiki/IPod_Classic http://www.apple.com/ipodclassic/ Timeline of iPod Classic

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http://en.wikipedia.org/wiki/IPod_Classic Timeline of iPod Classic

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Product development Introduction Growth Maturity Decline What Stage of the PLC is the iPod Classic?

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http://en.wikipedia.org/wiki/IPod_Touch http://www.apple.com/ipodtouch/ Timeline of iPod Touch

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Product: “A great pocket computer”. Music, movies, games, apps at fingertips. Price: 8GB : $249; 32GB: $319; 64GB: $429 Promotion: Advertisement on TV, billboards, magazines. Focus on numerous applications. Place: Online, Apple Store, Future Shop, Best Buy, Costco. http://www.apple.com/ca/ipod/compare-ipod-models/ Marketing Mix – iPod Touch

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Which Stage of the PLC is the iPod Touch? Product development Introduction Growth Maturity Decline

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Summary

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Over 500,000 views from more than 95 countries http://www.slideshare.net/ProfessorMathur/ Sameer Mathur smathur.com http://www.facebook.com/ProfessorSameerMathur

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Read this book “ This book is the bible of Marketing ” Prof. Sameer Mathur