Watch the video “Are You Sitting on a Million Dollar Idea?” Instead of creating a new or revamped product for this discussion (after all, you have already created your own hypothetical business), analyze the lifecycle of an existing product. The chart below will be helpful.

TABLE 9.4 Summary of Product Life-Cycle Characteristics, Objectives, and Strategies Introduction Growth Maturity Decline Characteristics Sales Low sales Rapidly rising sales Peak sales Declining sales Costs High cost per customer Average cost per customer Low cost per customer Low cost per customer Profits Negative Rising profits High profits Declining profits Customers Innovators Early adopters Middle majority Laggards Competitors Few Growing number Stable number beginning Declining number to decline Marketing Objectives Create product awareness and trial Reduce expenditure and milk the brand Maximize market share Maximize profit while defending market share Strategies Product Offer a basic product Diversify brands and items Phase out weak products Offer product extensions, service, warranty Price Charge cost-plus Price to penetrate market Price to match or best Cut price competitors' Distribution Go selective: phase out unprofitable outlets Build selective distribution Build intensive distribution Build more intensive distribution Communications Build product awareness and trial among early adopters and dealers Build awareness and interest Stress brand differences Reduce to minimal level needed in the mass market and benefits and encourage brand switching to retain hard-core loyals