PRODUCT LIFE CYCLE, ADOPTION CYCLE, CUSTOMERS CYCLE

1. BY: MUMTAZUL ILYANI
INTRODUCTION
TO MARKETING
PRODUCT
LIFE
CYCLE

2. PRODUCT LIFE CYCLE
OVERVIEW
Every product has a limited life span. In 1966, economist
Raymond Vernon formalized the theory that all products
go through a series of stages called the product life
cycle.
The product life cycle has 4 very clearly defined stages,
each with its own characteristics that mean different
things for business that are trying to manage the life
cycle of their particular products.

3. PRODUCT LIFE CYCLE

4. PRODUCT LIFE CYCLE
Introduction: During the introductory phase the product is formally
launched in the market. The size of the market for the product is small,
which means sales are low. Consumers get their first look at the product
and product awareness is created through various advertising media and
PR. There is a particular group of consumers that try the product in this
initial phase known as "Innovators". This early group of consumers are
more open to try new products and can take risk.
Growth: Once the product is commercialized successfully it starts gaining
popularity and gets established in the market. Profits start to rise and
competitors emerge. The types of consumers who show up in this phase
are called “Early Adopters” who possess technical/product knowledge and
are relatively eager to try new things.

5. PRODUCT LIFE CYCLE
Maturity: In this phase the product attracts new customers and also
retains existing ones. Profits generally hit its peak. Producer also need to
consider any product modifications or improvements to the production
process which might give them a competitive advantage. Sales volume is
driven by consumers referred to as the “Early Majority”. These customers
don't like to take risk and rely on well-established products.
Decline: the market for a product will start to shrink, and this is what’s
known as the decline stage. In the decline phase the product is usually
replaced by other products which fulfill the same need but in a better or
more cost effective manner. The customer base is driven by "Laggards”
who are not open to change and keep purchasing the product until the
stock lasts. Production is declining as profitability falls.

6. INNOVATION ADOPTION LIFECYCLE
In 1962, Everett Rogers the communication scholar and
sociologist, describes 5 types of adopter for products.
This describes acceptance of a new product or
innovation, according to the demographic and
psychological characteristics of defined adopter groups.
OVERVIEW

7. INNOVATION ADOPTION LIFECYCLE

8. INNOVATION ADOPTION LIFECYCLE
Innovators are the first customers to try a new product. They are risk
takers and are excited by the possibilities of new ideas and new ways of
doing things. Products tend to be more expensive at their point of release
and as such innovators are generally wealthier than other types of
adopters. It’s also important to realize that innovators are comfortable with the
risks that they take. They are aware that some products that they adopt will not
deliver the benefits that are promised.
Early adopters are the second phase of product purchasers following
innovators. These tend to be the most influential people within any market
space. They may be very active in social media and often create reviews
and other materials around new products that they strongly like or dislike.
They do not take as many risks as innovators and tend to make more reasoned
decisions. They will try to obtain more information than an innovator in this decision
making process.

9. INNOVATION ADOPTION LIFECYCLE
Early Majority – take slightly longer in the adoption, but the percentage is
higher than early innovators and early adopters. They are the curious
individuals who weigh the pros and cons. They are cautious with their time
and money before investing in the product. Early majorities are open-
minded and they listen to opinions of early adopters instead of forming
them. They are people with better than average social status
Late Majority - Late majorities embrace the change after seeing the
majority of people adopted to the innovation. These individuals avoid the
change as long as they can. Individuals in this group are mostly close-
minded, and they form a perception without understanding the product or
innovation. Typically, they are only convinced by trusted family and
friends. This category of adopter has less money and lower social status.

10. INNOVATION ADOPTION LIFECYCLE
Laggards are last to arrive at the adoption party and their arrival is
typically a sign that a product is entering decline. Laggards value
traditional methods of doing things and highly averse to change and
risk. Typically laggards will have low socio-economic status and
rarely seek opinions outside of their own limited social set. In many
cases laggards are older people who are less familiar with technology
than younger generations and in these cases they may still have a
mid-level of socio-economic status.

11. CUSTOMER LIFECYCLE

12. CUSTOMER LIFECYCLE
New - This is the time when a customer is just
starting their relationship with your company.
The length of time a customer spends in this
stage depends on your business but it is normally
anywhere from a few days to a couple of months.
Existing - These are your company’s current
customers and fall into several groups. The first is
the Ideal customer - continue to use and grow their
use of your products. The second are the Unhappy
customers - still use your products, are discontented.
Lastly, customers in Silent Attrition - still have your
products but no longer use them actively.

13. CUSTOMER LIFECYCLE
Exiting - These customers are on the
way out. They may still use your product
but they are looking for the exit and
actively seeking alternatives. Given time,
they will leave.
Exited - Putting it simply, these are no
longer customers. They have left.