Chapter 10: Managing Successful Products, Services, and Brands

Product Life Cycle

the stages a new product goes through in the marketplace: introduction, growth, maturity, and decline

Introduction Stage

The first phase of the product life cycle where a product is launched into the market, aiming to build awareness and establish a customer base.

Growth Stage

The second phase of the product life cycle characterized by increasing sales, market acceptance, and the establishment of a strong customer base as the product gains traction in the marketplace.

Maturity Stage

The third phase of the product life cycle where sales growth slows or stabilizes, competition intensifies, and efforts focus on maintaining market share while maximizing profit.

Decline Stage

The fourth phase of the product life cycle characterized by a decrease in sales and profitability, where efforts may be made to revitalize the product or gradually withdraw it from the market.

Deletion

where a product is phased out due to diminished sales and profitability, leading to its removal from the market.

Harvesting

a strategy where a company reduces marketing and production costs to maximize short-term cash flow from a product in the decline stage.

Length of Product Life Cycle

the period from a product's introduction to its withdrawal from the market.

Shape of the Life-Cycle Curve

the graphical representation of the sales and profits of a product over time.

High-Learning product

a product that requires significant consumer education before adoption, leading to a longer adoption period.