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Product Life Cycle
A product life cycle outlines the stages a new product goes through in the marketplace.
Introduction Stage
This stage focuses on stimulating trial and creating demand.
Primary Demand
Demand for the product category as a whole.
Selective Demand
Demand for a specific brand within the product category.
Skimming
Setting a high initial price.
Penetration
Setting a low price to gain market share quickly.
Growth Stage
Characterized by rapid sales growth, increased competition, and peak profits.
Maturity Stage
Sales growth slows, and most buyers are repeat customers.
Decline Stage
Both industry and product sales decline.
Deletion
Remove the product from the product line.
Harvesting
Retain the product but reduce marketing costs.
Length of the Product Life Cycle
Varies depending on the product.
Shape of the Product Life Cycle
Different products exhibit different life cycle curves.
Generalized Life Cycle Curve
Typical bell-shaped curve.
High-learning Product
Slow initial growth due to customer education requirements.
Low-learning Product
Rapid growth due to ease of understanding.
Fashion Product
Fluctuations based on style trends.
Fad Product
Short life cycle with a rapid rise and decline.
Rate of Consumer Adoption
How quickly consumers adopt a product.
Categories of Adopters
Innovators (2.5%), Early adopters (13.5%), Early majority (34%), Late majority (34%), Laggards (16%).
Usage Barriers
Product incompatibility with existing habits.
Value Barriers
Lack of perceived benefits to change.
Risk Barriers
Concerns about physical, economic, or social risks.
Psychological Barriers
Cultural differences or negative image.
Category Development Index (CDI)
Measures the performance of a product category in a specific market segment relative to its national average.
Brand Development Index (BDI)
Measures the performance of a brand in a specific market segment relative to its national average.
Product Modification
Altering product characteristics.
Market Modification
Finding new customers.
Product Repositioning
Changing the product's perceived position in consumers' minds.
Branding
Using a name, phrase, design, or symbols to identify and differentiate products.
Brand Name
Any word, device, or combination used to distinguish a seller's goods or services.
Trade Name
The legal name under which a company does business (e.g., Coca-Cola Company).
Trademark
A legally registered brand name or trade name, granting exclusive use.
Brand Personality
Human characteristics associated with a brand.
Brand Equity
Added value beyond functional benefits that a brand name provides.
Brand Purpose
The reason for a brand's existence, its role in consumers' lives, and its contribution to society.
Brand Licensing
Allowing another company to use brand names or trademarks for a fee.
Multiproduct Branding
Using one name for all products in a product class.
Private Branding
Manufacturer produces products sold under a retailer's brand name.
Packaging
Any container in which a product is offered for sale, displaying label information.
Labeling
An integral part of the package, providing product identification, manufacturer details, instructions, and contents.
