Chapter 11: Section 11-4 Product Life Cycles and Marketing Strategies Goal: To apply the concept of Product Life Cycle 4 stages: Introduction, Growth, Maturity, and Decline to everyday products. You will be provided a textbox to enter your answers. NUMBER 1-5 WITH EACH NUMBER ON A NEW LINE IN THE TEXT BOX. For each number choose which stage the product is in and your reason for that choice. Reasons can come from the text book and I have made my own notes from the book below you can use. Look at the following examples of products. Identify whether the product is in the introduction, growth, maturity, or decline stage of the product life cycle. Give a reason to defend your choice of stage. I have added notes below from the textbook as possible reasons to defend your choice. Example: Ivory bar Soap Stage: Maturity Reason: It is still around, you can find it in Walmart and many other stores and it has been around for many decades Whats My Stage? 3 points each, total 15 points 1. Smartphone Stage_______________________ Reason _____________________________ 2. Print Encyclopedias Stage_______________________ Reason _____________________________ 3. Self-driving cars Stage_______________________ Reason _____________________________ 4. Coca-Cola Stage_______________________ Reason _____________________________ 5. Smart speakers with voice assistants like Amazon Echo Stage_______________________ Reason _____________________________ NOTES ON EACH STAGE 1. INTRODUCTION Consumer awareness and acceptance of the product are low Sales rise gradually (low slope) as a result of promotion and distribution activities High costs for development and marketing results in less profits Few competitors (at your heels) Price can be high here, some people want to be the first to own. Marketing challenge is to make customers aware of products existence, uses, benefits etc. 2. GROWTH Sales increase rapidly (steep slope) as the product becomes well known Competition enters; other firms begin introducing competing products. Price of product is lowered due to competition and lower production costs. Industry profits peak then begin to decline (and continue to decline) Marketing challenge: Brand loyalty (next topic) through promotion (chapter 15 next) and emphasis on customer service to beat competition, company may further improve the product or expand the product line 3. MATURITY Sales still increasing at beginning and then begins to decline Industry profits decline through this stage Product lines are reduced, fewer number of offerings More product refinements and extensions to meet customer needs Price competition with downward pressure on profits. 4. DECLINE Sales volume decreases sharply initially, then levels off. Profits continue to fall (not losing money, if so, no longer in life cycle) Number of competitors decrease as some firms eliminate the product from their line Production and Marketing costs become the most important determinant of profits ****No time in product life cycle, depends on the product. Fad products can go through whole life cycle in a matter of weeks, with some products still in existence, maturity, for a century.