Product Life Cycle 3-14-2023

Unit 6

Product/Service Management

PM:001

Explain the nature and scope of the

product/service management function

▪ Marketing function

▪ Wide array of activities

▪ Who is in charge?

PM:001 Explain the nature and scope of the product/service

management function

Product/Service Management

Factors Affecting
Product/Service Management

▪ Internal

▪ External

PM:001 Explain the nature and scope of the product/service

management function

Benefits of Product/Service Management

▪ Improved sales and profits

▪ Increased market share

▪ Increased ability to beat

the competition

▪ New customers

▪ Fewer risks

PM:001 Explain the nature and scope of the product/service

management function

Phases of Product/Service Management

▪ Developing new products

▪ Monitoring existing products

▪ Eliminating weak products

PM:001 Explain the nature and scope of the product/service

management function

Developing New Products

▪ Generate new ideas.

▪ Screen ideas.

▪ Test the product concept.

▪ Conduct a feasibility analysis.

▪ Develop the product.

▪ Test market the product.

▪ Commercialize the product.

PM:001 Explain the nature and scope of the product/service

management function

Monitoring Existing Products

▪ Sales

▪ Profit

▪ Market share

▪ Meeting expectations

PM:001 Explain the nature and scope of the product/service

management function

Eliminating Weak Products

▪ Product discontinuation

PM:001 Explain the nature and scope of the product/service

management function

PM:024

Identify the impact of product life

cycles on marketing decisions

▪ Introduction

▪ Growth

▪ Maturity

▪ Decline

PM:024 Identify the impact of product life cycles on marketing decisions

Product Life Cycle

Maturity

Growth

Decline

Introduction

Multiple Choice

The product life cycle shows the different stages that a product passes through and sales that can be expected at each stage

• True

• False

Multiple Choice

Why does a company need to know what stage the product life cycle its product are in?

• to adapt its marketing strategies

• to predict the length of the life cycle

• to find new uses for the product

• To prevent imitators from entering the market

Introduction

▪ Low sales, high costs

▪ Product line short and

simple

▪ Promotion seeks to

inform

▪ Price varies by goal

▪ Place is important

Introduction Stage

PM:024 Identify the impact of product life cycles on marketing decisions

Product life cycle

Multiple Choice

What stage has least competitors?

• intro

• maturity

• decline

• growth

Multiple Choice

What is the first stage of the product life cycle?

• Growth - product sales increase

• Introduction - new product to the market

• Maturity - product sales start to slow down

• Decline - product sales decrease

▪ Increased sales, lower costs

▪ Product line expanded

▪ Promotion highlights brand

▪ Price varies by demand

▪ Place and distribution

expanded

Growth Stage

PM:024 Identify the impact of product life cycles on marketing decisions

Growth

Product life cycle

Multiple Choice

Which stage has rapid sales?

• introduction

• maturity

• decline

• growth

Multiple Choice

During this stage, a business will research and devlop the product. Product testing and trials takes place.

• Development

• Introduction

• Growth

• Maturity

• Decline

Multiple Choice

During this stage, the product is launched. Usually a loss is made during this phase as Sales are low (but increasing)

• Development

• Introduction

• Growth

• Maturity

• Decline

Multiple Choice

During this stage, products sales increase profits start to be made. A business may need to increase outlets to reach new markets.

• Development

• Introduction

• Growth

• Maturity

• Decline

Maturity

Product life cycle

▪ Growth slows, profits stabilize

▪ Product is differentiated

▪ Promotion by incentive

▪ Price varies by competition

▪ Place by incentive

Maturity Stage

PM:024 Identify the impact of product life cycles on marketing decisions

Multiple Choice

During this stage, sales rate starts to slow, perhaps a competitor has launched something similar or customers just want something new.

• Development

• Introduction

• Growth

• Maturity

• Decline

Decline

Product life cycle

Decline Stage

▪ Sales decrease, few costs

▪ Product harvested or

liquidated

▪ Promotion is largely ceased

▪ Price varies by speed of

decline

▪ Place is reduced or

nontraditional

PM:024 Identify the impact of product life cycles on marketing decisions

Multiple Choice

In this stage:

•Declining sales

•Low cost per customer

•Declining profits

•Laggards are targeted

•Declining competition

• Product development

• Introduction

• Growth

• Maturity

• Decline

Multiple Choice

Which stage has the least production costs?

• introduction

• maturity

• decline

• growth

Extending a Product’s Life Cycle

▪ New uses

▪ Frequency of use

▪ Number of users

▪ Physical alteration

PM:024 Identify the impact of product life cycles on marketing decisions

Multiple Choice

What is a product extension?

• longer production time

• products with extension features

• strategies to keep the product from declining

• products that keep going through the different stages

Multiple Choice

In Product Life Cycle stages, the stage in which sales and profits decrease is called

• Introduction

• Growth

• Maturity 

• Decline

Multiple Choice

In a Product Life Cycle, the stage where there are steady sales and it becomes harder for marketers:

• Introduction

• Growth

• Maturity 

• Decline

Multiple Choice

In this stage:

•Low sales

•High cost per customer acquired

•Negative profits

•Innovators are targeted

•Little competition

• Product development

• Introduction

• Growth

• Maturity

• Decline

Multiple Choice

Which stage has lots of competitors?

• growth

• maturity

• introduction

• decline

Multiple Choice

Which stage has rapid sales?

• introduction

• maturity

• decline

• growth

PM:040

Explain business ethics in

product/service management

▪ Design

▪ Safety

▪ Dimensions

▪ Environmental impact

PM:040 Explain business ethics in product/service management

Product Packaging

Product Labeling

▪ Descriptive words

▪ Comparisons

▪ Hazard warnings

PM:040 Explain business ethics in product/service management

Product Quality Management

▪ Planned obsolescence

PM:040 Explain business ethics in product/service management

▪ Transparency

▪ Risk warnings

PM:017

Identify consumer protection

provisions of appropriate agencies

▪ Product safety

▪ Product testing

▪ Product labeling

▪ Product-use instructions

▪ Product packaging

▪ Honest promotion

▪ Price comparison

▪ Warranties and guarantees

PM:017 Identify consumer protection provisions of appropriate agencies

Forms of Consumer Protection

▪ Assortment of products

▪ Consumer inadequacies

▪ Injuries and illness

▪ Dishonest or confusing

business practices

▪ Business protection

Need for Consumer Protection

PM:017 Identify consumer protection provisions of appropriate agencies

▪ FTC

▪ CPSC

▪ FDA

▪ NHTSA

▪ CFPB

Role of Government Agencies

PM:017 Identify consumer protection provisions of appropriate agencies

Consumer Protection Laws

▪ The National Traffic and Safety Act of 1958

▪ The Fair Packaging and Labeling Act of 1967

▪ The Consumer Credit Protection Act of 1968

▪ The Magnuson-Moss Warranty Act of 1975

▪ The Do-Not-Call Implementation Act of 2003

▪ The Credit Card Accountability, Responsibility, and

Disclosure Act of 2009

PM:017 Identify consumer protection provisions of appropriate agencies

Effect on Business

▪ Product development

▪ Product problem correction

▪ Product recalls

▪ Insurance coverage

▪ Legal protection

▪ Licensing

PM:017 Identify consumer protection provisions of appropriate agencies

PM:019

Describe the uses of grades and

standards in marketing

Grades and Standards

▪ Grades are based on

standards.

▪ Standards vary by situation.

▪ Grade have established

meanings.

▪ Both aid in the buying and

selling process.

PM:019 Describe the uses of grades and standards in marketing

▪ Government agencies

▪ Trade associations

▪ Businesses

PM:019 Describe the uses of grades and standards in marketing

Who Sets Grades and Standards?

▪ How to use a product

▪ Where to sell a product

▪ Who should use a

product

▪ Assist salespeople

▪ Indicate product safety

▪ Help sell product abroad

PM:019 Describe the uses of grades and standards in marketing

Why Use Grades and Standards?

▪ Quantity standards

▪ Quality standards

▪ Time standards

▪ Cost standards

PM:019 Describe the uses of grades and standards in marketing

Types of Standards

Graded Products

▪ Food products

▪ Agricultural raw materials

▪ Non-food products

PM:019 Describe the uses of grades and standards in marketing

PM:020

Explain warranties and guarantees

▪ Express warranty

PM:020 Explain warranties and guarantees

Warranties

▪ Implied warranty

▪ Full warranty

▪ Limited warranty

▪ Both goods and services

▪ Can be used in promotion

▪ Effective guarantees

� Unconditional

� Understandable

� Easy to implement

� Easy to collect

PM:020 Explain warranties and guarantees

Guarantees

▪ Increasing customer confidence

▪ Protecting the producer and the seller

▪ Earning customer loyalty

▪ Increasing sales

▪ Promoting products

▪ Using as a competitive tool

▪ Building a company’s image

PM:020 Explain warranties and guarantees

Purposes

Benefits

▪ Customer benefits

▪ Business benefits

PM:020 Explain warranties and guarantees

Rolex

Regulation

▪ Magnuson-Moss

Warranty Act of 1975

PM:020 Explain warranties and guarantees

PM:003

Explain the concept of product mix

▪ Varies based on:

� Target market

� Company size

� Company finances

▪ Composed of:

� Product items

� Product lines

PM:003 Explain the concept of product mix

The Product Mix

▪ Classified according to:

� Product class

� Customer group

� Price/Quality

� Distribution method

PM:003 Explain the concept of product mix

Product Lines

▪ Width

▪ Length

PM:003 Explain the concept of product mix

Product-Mix Dimensions

▪ Depth

▪ Consistency

▪ Appeal to the target market

▪ Help present consistent image

▪ Affect profitability

▪ Help deal with competition

PM:003 Explain the concept of product mix

Product-Mix Importance

Product-Mix Strategies

▪ Expansion

▪ Contraction

▪ Alteration

PM:003 Explain the concept of product mix

Product-Mix Strategies

▪ Trading up

▪ Trading down

PM:003 Explain the concept of product mix

Lexus

Yaris

PM:041

Describe the nature
of product bundling

▪ The practice of selling

complementary products
together as a package

PM:041 Describe the nature of product bundling

Product Bundling

▪ A pure bundle is only

available for purchase as
a bundle.

▪ Products in mixed

bundles can be
purchased together or
separately.

PM:041 Describe the nature of product bundling

Pure and Mixed Bundles

▪ Provides savings

▪ Reduces pain of buying

▪ Provides convenience

PM:041 Describe the nature of product bundling

Benefits to Buyers

▪ Increases sales and grows revenue

▪ Obscures individual product prices

▪ Reduces marketing efforts and costs

▪ Encourages product sampling

▪ Helps reduce inventory

PM:041 Describe the nature of product bundling

Benefits to Sellers

Bundling Must Be Done Strategically

▪ Evaluate overall

marketing strategy first.

▪ Consider impact on

products and customers.

▪ Design to increase

sales/revenue.

PM:041 Describe the nature of product bundling

Challenges of Product Bundling

▪ Cannibalizes sales of existing products

▪ Reduces perceived value of product bundle

▪ Difficult for customers to make buying

decisions

▪ Frustrates customers who want to buy

products separately

PM:041 Describe the nature of product bundling

PM:042

Describe factors used by marketers

to position products/services

▪ Standing out in the crowd

▪ Unique and memorable

▪ Connecting with customers

PM:042 Describe factors used by marketers to position products/services

Positioning Products/Services

▪ Competitive advantage

Positioning and the Competition

PM:042 Describe factors used by marketers to position products/services

▪ Determinant factors

Positioning and Target Markets

PM:042 Describe factors used by marketers to position products/services

$67,999.99

$17,999.99

Positioning and the Marketing Mix

▪ Product

▪ Promotion

▪ Place

▪ Price

PM:042 Describe factors used by marketers to position products/services

Positioning Strategies

▪ By attribute

▪ By people (service)

▪ By users

▪ By use(s)

▪ By product class

PM:042 Describe factors used by marketers to position products/services

PM:021

Explain the nature of product/service

branding

▪ Product brand

� Brand name

� Brand mark/logo

� Trade characters

▪ Manufacturer’s brand

▪ Private brand

▪ Family branding

PM:021 Explain the nature of product/service branding

Product/Service Branding

▪ Individual branding

▪ Generic items

▪ Memorable

▪ Distinctive

▪ Adaptable

▪ Appealing

▪ Available for use

▪ Appropriate

PM:021 Explain the nature of product/service branding

Effective Brand Naming

Brand Loyalty

▪ Brand recognition

▪ Brand preference

▪ Brand insistence

PM:021 Explain the nature of product/service branding

Types of Brand Strategies

▪ Brand positioning

▪ Brand extension

▪ Brand licensing

▪ Co-branding

PM:021 Explain the nature of product/service branding

PM:276

Describe the role of

customer voice in branding

• Refers to customer expectations,

preferences, and dislikes

PM:276 Describe the role of customer voice in branding

Voice of the Customer (VOC)

Role of VOC in Branding

▪ Used to develop and

improve products

▪ Improves communication,

customer service, and
touchpoints

▪ Identifies customer

interests, concerns, and
attitudes

PM:276 Describe the role of customer voice in branding

Methods Used To Gather VOC

▪ Blogs, message boards, social media

▪ Employee interactions with customers

▪ Chatbots

▪ Online reviews

▪ Customer surveys

▪ Focus groups

▪ Interviews

PM:276 Describe the role of customer voice in branding

Challenges of Using VOC

▪ Must analyze for authenticity

and relevance

▪ Difficult to assign value to

information

▪ Customer attitudes frequently

change

PM:276 Describe the role of customer voice in branding

PM:206

Explain the nature of
corporate branding

▪ Corporate brand

� Brand identity

� Brand values

� Brand personality

PM:206 Explain the nature of corporate branding

Corporate Branding

▪ Logos

▪ Colors

▪ Names

▪ Images and graphics

▪ Design

PM:206 Explain the nature of corporate branding

Brand Identity

Brand Values

▪ Brand promise

PM:206 Explain the nature of corporate branding

Brand Personality

▪ Touchpoints

▪ Brand cues

PM:206 Explain the nature of corporate branding

PM:207

Describe factors used by

businesses to position

corporate brands

▪ Puts a brand in a

certain position in
customers’ minds

PM:207 Describe factors used by businesses to position corporate brands

Brand Positioning

▪ Achieves brand

recognition

▪ Helps identify marketing

objectives

▪ Used to satisfy target

market

▪ Determines products to

be offered

Ways Brand Positioning Is Used

PM:207 Describe factors used by businesses to position corporate brands

Brand Positioning Helps a Brand Compete

▪ Highlights competitive

advantages

▪ Differentiates brand

from competitors

PM:207 Describe factors used by businesses to position corporate brands

Types of Positioning Strategies

▪ Quality

▪ Value/Price

▪ Benefits/Attributes

▪ Problem/Solution

▪ Competitor-based

▪ Celebrity-driven

▪ Distribution

▪ Emotion

PM:207 Describe factors used by businesses to position corporate brands

PM:277

Identify customer touchpoints

▪ Opportunities to connect

with customers and
reinforce brand value

▪ Create the customer

journey

▪ Influence customer’s

perception of brand

PM:277 Identify customer touchpoints

Customer Touchpoints

▪ Communication

▪ Human interactions

▪ Physical

▪ Sensory

PM:277 Identify customer touchpoints

Types of Touchpoints

▪ Discover and correct problems.

▪ Improve products.

▪ Improve customer

service/satisfaction.

▪ Gain customer loyalty.

▪ Increase positive

word of mouth.

▪ Validate company efforts.

PM:277 Identify customer touchpoints

How Companies Use Touchpoints

Touchpoint Mapping

▪ Identifies all customer touchpoints

▪ Customer journey organized by phases

� Awareness

� Discovery

� Purchase

� Use of product

� Follow-up phases

PM:277 Identify customer touchpoints

Discovery

Purchase

Use of
product

Company
follow-up

Awareness

Best Practices To Identify Touchpoints

▪ Examine customer feedback.

▪ Use customer’s point of view.

▪ Consider different customer

types.

▪ Recognize how touchpoints

affect each other.

▪ Focus on relevant

information.

PM:277 Identify customer touchpoints

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