PRODUCT Life Cycle

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Product Life Cycle

REV

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Summary

of

Summary

of

Product DevelopmentProduct Development

6

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: Marketing Strategies: Introduction Stage

Toyota Hybrid : Introductory stage productToyota Hybrid : Introductory stage product

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9

Sales

Costs

Profits

Marketing Objectives

Product

Price

Rapidly rising sales

Average cost per customer

Rising profits

Maximize market share

Offer product extensions, service, warranty

Penetration Pricing

Distribution Build intensive distribution

Advertising Build awareness in the mass market

Marketing Strategies: Marketing Strategies: Growth Stage

A Product at the Growth StageA Product at the Growth Stage

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12

Sales

Costs

Profits

Marketing Objectives

Product

Price

Peak sales

Low cost per customer

High profits

Maximize profit while defending market share

Diversify brand and models

Price to match or best competitors

Distribution Build more intensive distribution

Advertising Stress brand differences and benefits

Marketing Strategies: Marketing Strategies: Maturity Stage

A product at the Mature StageA product at the Mature Stage

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15

Marketing Strategies: Marketing Strategies: Decline Stage

Sales

Costs

Profits

Marketing Objectives

Product

Price

Declining sales

Low cost per customer

Declining profits

Reduce expenditure and milk the brand

Phase out weak items

Cut price

Distribution Go selective: phase out unprofitable outlets

Advertising Reduce to level needed to retain hard-core loyal customers

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Alternative product life cyclesAlternative product life cycles

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

Apple Inc. – 2008 Revenues Apple Inc. – 2008 Revenues

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 iPodsProduct Life Cycle of iPods

Timeline of iPod Classic

http://en.wikipedia.org/wiki/IPod_Classichttp://www.apple.com/ipodclassic/

Timeline of iPod Classic

http://en.wikipedia.org/wiki/IPod_Classic

Timeline of iPod Touch

http://en.wikipedia.org/wiki/IPod_Touchhttp://www.apple.com/ipodtouch/

Marketing Mix -- iPod Touch

• Product: “A great pocket computer”. Music, movies, games, apps at fingertips. HD Video recording, Retina Display, Air play, Voice Control features.• Price: 8GB : $199; 32GB: $299; 64GB: $399• Promotion: Advertisement on TV, billboards,

magazines. Focus on numerous applications. • Place: Online, Apple Store, Future Shop, Best Buy,

Costco.

http://www.apple.com/ipod/compare-ipod-models/

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