1. Product Life Cycle
Fours stages of sales and profit performance in
which all brands of a product progress

2. Product Life Cycle
Introduction
• Brand new product enters market
• Only 1 brand available to purchase
• No competition
• High costs of producing and marketing
usually result in loss or low profits
• Examples: vibram 10 finger shoes

3. Product Life Cycle
Growth
• Other firms see opportunity
• Several brands become available to purchase
• Firms attempt to improve product by adding
features
• Most companies earn profit at this stage
• Examples: cell phones, tablets

4. Product Life Cycle
Maturity
• Large # of customers
• Many brands competing with similar features
• Customers have difficulty identifying differences
among brands but may have brand-loyalty to one
• ***Promotion of brand name, packaging, specific
image, and price is crucial at this stage***
• Profits usually fall even though sales may rise
• Examples: cars, personal care products, regularly
used products we don’t give much thought to
• Firms respond by searching for new markets to enter

5. Product Life Cycle
Decline
• Many products stay here a long time
• New, better products have replaced
• Companies cannot improve old product enough
to compete (little $ spent on marketing)
• Companies drop when product no longer sustains
• New use for old product may “save” declining
product (ex. Baking soda used to remove odors)